S&P and Moody's Upgrade Emaar's Credit Ratings, Citing Strong Financial Performance and Robust Revenue Visibility
S&P Global Ratings upgraded its long-term issuer credit rating to BBB+ from BBB, with a stable outlook, while Moody's upgraded Emaar's long-term issuer rating to Baa1 from Baa2, also with a stable outlook. These upgrades reflect Emaar's robust financial fundamentals, consistent performance, and sound strategic direction.
The same S&P and Moody's rating upgrade has been applied to Emaar's senior unsecured debt.
Strong Financial Position and Strategic Execution
As of March 2025, Emaar reported a revenue backlog of approximately AED 127 billion (US$ 34.6 billion), providing strong revenue and cash flow visibility through 2028. The company's recurring income portfolio continues to expand, supported by disciplined execution, resilient operations, and diversified income streams.
S&P's upgrade was driven by Emaar's record-high backlog of AED 110 billion (US$ 29.9 billion) as of December 2024, and healthy presales in the UAE of AED 65.4 billion (US$ 17.8 billion) during 2024, alongside a net cash position, low leverage, and strong adjusted EBITDA margins.
Moody's highlighted significant reduction in adjusted debt of Emaar from 2020 to March 2025 and the drop in debt to equity ratio over the same period.
Commenting on the announcements, Mohamed Alabbar, Founder of Emaar, said:
"We are proud to receive this recognition from both S&P and Moody's, which underscores the strength of our strategy, the quality of our assets, and the discipline we maintain in financial management. These upgrades reflect not only our performance, but also the confidence in Dubai's economy and real estate market. We will continue to pursue sustainable growth, innovation, and value creation for our shareholders and stakeholders alike."
Liquidity and Resilience
Emaar reported an interest coverage ratio of approximately 24 times for the twelve months ending March 2025 and holds AED 25.4 billion (US$ 6.9 billion) in cash (excluding escrow balances), along with AED 7.4 billion (US$ 2 billion) in undrawn committed credit facilities, providing ample liquidity and financial flexibility.
S&P noted that Emaar's strong mall, hospitality, and entertainment operations, in addition to the resilience of its real estate development business, contributed to the rating action. Dubai Mall, for instance, recorded over 111 million visitors in 2024, with overall mall portfolio occupancy of 98.5%, showcasing the strength of Emaar's recurring income-generating assets.
Outlook
Both agencies issued a stable outlook, reflecting their expectation that Emaar will maintain solid credit metrics, strong liquidity, and continued operational performance.
These dual upgrades reinforce Emaar's reputation as a leading player in the global real estate sector, anchored in a dynamic and fast-growing market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Bawaba
3 hours ago
- Al Bawaba
ENOC Board appoints Hussain Sultan Lootah as Acting Chief Executive Officer of the Group
ENOC Group, a leading integrated global energy player, has announced the appointment of Mr. Hussain Sultan Lootah as Acting Chief Executive Officer of ENOC Group. The appointment aligns with the Group's commitment to drive the future of energy and support Dubai's ambitious plans of economic diversification and sustainable Lootah takes over from Mr. Saif Humaid Al Falasi, who led the Group's progress and expansion for the last 10 Hussain Sultan Lootah, Acting CEO of ENOC Group said: 'ENOC Group is at the forefront of building a more sustainable energy landscape for the UAE and the wider region. I am honoured to step into this new role and be part of the ENOC Group success journey, and look forward to working closely with ENOC's talent and leaders to build on its legacy of innovation and excellence.' With three decades of leadership experience in the Oil & Gas industry, Mr. Lootah brings deep expertise in finance, commercial strategy, project management, and talent development. His career spans key leadership roles in the field, where he led operations and drove significant progress in Emiratisation and human capital development. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
Al Bawaba
3 hours ago
- Al Bawaba
Mastercard and Octet Türkiye collaborate to enhance financial flexibility for businesses across MENA
Mastercard and Octet Türkiye have entered a collaboration to address the growing cash management and installment payment needs of businesses in the MENA region. Through this alliance the two companies will launch a versatile solution capable of processing various corporate transactions with a focus on facilitating easy payments and collections with cards. According to data by Statista, the number of digital B2B payments in the Middle East and Africa is forecast to nearly double between 2023 and 2028. The innovative solution will help increase digital transaction volumes by offering efficient alternatives to cash payments. By leveraging Octet Türkiye's expertise in trade facilitation and corporate credit card payments, the solution will enable businesses to make extended, or installment payments while allowing sellers to immediately collect invoice amounts. 'The commercial payments segment presents a wealth of opportunities for innovation. At Mastercard, we are committed to harnessing the power of collaborations to drive smarter and more efficient payment methods. Our latest collaboration with Octet Türkiye will contribute to driving the adoption of digital transactions among businesses, empowering them with greater financial flexibility, said Mete Guney, executive vice president, Market Development, EEMEA, Mastercard. With the increasing use of corporate credit cards, businesses can extend their payment terms without relying on traditional cash loans, ensuring better financial flexibility. This collaboration will enable companies to use their preferred bank's credit cards for payments while seamlessly managing their collections, all within a secure and efficient digital framework. 'In Türkiye, installment payments via credit cards have been a standard practice, regardless of the amount, for a very long time. In addition to the desire for cashless trade driven by digitalization, the global requirement for liquidity management makes the installment payment system a necessity. We at Octet Türkiye, in collaboration with Mastercard, are here to meet this need in the business-to-business (B2B) space across the region,' said Can Saydam, Co-Founder and Chief Sales Officer, Octet Türkiye.
Al Bawaba
3 hours ago
- Al Bawaba
flydubai partners with emaratech to introduce smart biometric gates
as part of its ongoing commitment to innovation and investing in the latest technologies, flydubai has partnered with emaratech, a leading technology organisation in the UAE, to implement smart border control solutions for its pilots and cabin at the carrier's Airport Operations Centre, the new smart gates utilise advanced biometric technology, AI-driven verification and real-time data integration to streamline immigration processes. This provides a faster and more efficient immigration experience for its flight operations, supporting the carrier's commitment to operational efficiency, especially during busy travel Excellency Thani Alzaffin, Group Chief Executive Officer of emaratech, said: 'we are proud to partner with flydubai in pioneering a next-generation, paperless immigration experience for their crew members. Through the integration of AI-powered facial recognition technology, our smart gates seamlessly connect with both flydubai's and immigration's platforms, enabling real-time validation and a truly frictionless journey.''This initiative reflects emaratech's continued commitment to redefining border control processes—making them smarter, faster, and more secure. By harnessing the power of artificial intelligence, we are shaping a future where innovation drives convenience and trust at every checkpoint. We look forward to deepening our collaboration with flydubai across future initiatives that further enhance the travel experience for both passengers and crew,' added Hareb AlMheiri, Chief Procurement & Technology Officer at flydubai, said: 'we are pleased to have partnered with emaratech to implement this innovative solution for our pilots and cabin crew. We always look for opportunities to harness the latest technologies that support our growth and operational efficiencies and with the introduction of these biometric smart gates, this marks another step towards fostering a more seamless, punctual and secure operation as we future-proof our systems.'The carrier continues to invest in technologies that improve the daily experience of its frontline teams. Six smart biometric gates have been installed at the flydubai Airport Operations Centre where the crew report for their flights. Today, flydubai has created a growing network of more than 135 destinations served by a modern and efficient fleet of 89 aircraft. The carrier has also built a strong workforce of more than 6,400 employees, more than 1,300 of whom are pilots along with 2,500 cabin crew.
