Emaar's Credit Ratings Upgraded by S&P - Moody's on Strong Financials

Emaar Properties PJSC (DFM: EMAAR), globally recognised for its landmark developments and strong market presence, has secured long-term issuer credit rating upgrades from two major international agencies — S&P Global Ratings and Moody’s Ratings. These upgrades reflect growing investor confidence in the company’s financial strength and strategic direction.

Upgraded Ratings Signal Financial Confidence

S&P Global has raised Emaar’s long-term issuer rating from BBB to BBB+, maintaining a stable outlook, while Moody’s has upgraded the company’s rating from Baa2 to Baa1, also with a stable outlook. Both agencies extended the same credit upgrades to Emaar’s senior unsecured debt, underlining the company’s creditworthiness and steady financial governance.

Backlog and Recurring Revenue Power Strong Fundamentals

As of March 2025, Emaar’s revenue backlog stands at approximately AED 127 billion (US$ 34.6 billion), giving the company a clear and predictable revenue stream well into 2028. Its expanding recurring income portfolio, backed by operational efficiency and strategic diversification, continues to drive long-term stability.

S&P’s assessment particularly highlighted a record backlog of AED 110 billion (US$ 29.9 billion) as of December 2024, along with presales worth AED 65.4 billion (US$ 17.8 billion) achieved across the UAE in 2024. These, combined with a strong net cash position, low financial leverage, and solid EBITDA margins, were pivotal to the upgrade.

Debt Reduction and Financial Discipline Recognised

Moody’s attributed its rating action to Emaar’s ongoing efforts in deleveraging, noting a marked decline in adjusted debt from 2020 through March 2025. The agency also observed a significant drop in the company’s debt-to-equity ratio, reflecting prudent capital management and a focus on maintaining financial health.

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 Remains a Key Strength

Emaar’s liquidity position remains robust, with an interest coverage ratio of around 24x for the twelve months ending March 2025. The company holds AED 25.4 billion (US$ 6.9 billion) in cash (excluding escrow accounts) and has access to AED 7.4 billion (US$ 2 billion) in undrawn committed credit facilities, ensuring ample financial flexibility.

S&P further credited Emaar’s diversified operations — including retail, hospitality, and entertainment — as contributors to the company’s resilience. The performance of Dubai Mall was a standout, attracting over 111 million visitors in 2024 and achieving 98.5% occupancy across the wider retail portfolio, underscoring the strength of Emaar’s income-generating assets.

Stable Outlook Reflects Continued Strength

Both S&P and Moody’s have issued a stable outlook for Emaar, based on expectations that the company will sustain its strong liquidity position, maintain sound credit metrics, and continue to perform well operationally.

These dual upgrades cement Emaar’s position as a powerhouse in the global real estate arena, supported by solid fundamentals and a forward-looking growth strategy in a dynamic market environment.