Aldar Saw 47% Net Profit Increase Amid UAE Real Estate Boom

Aldar’s net profit to equity investors for the 12 months ending in December increased to Dh5.6 billion.

Aldar Properties, Abu Dhabi’s largest listed developer, saw a 47% increase in their net profits for the year 2024, amounting to Dh6.5 billion, where 78% of the sales were coming from foreign and expat investors.

They got so much sales since there was a sharp increase in both local and overseas buyers, which increased their revenue amid a boom in the emirates’ real estate market. Over the last two years, their net profit has doubled.

The company said in a statement to the Abu Dhabi Securities Exchange where its shares are traded that its net profit to equity investors for the 12 months ending in December increased to Dh5.6 billion ($1.49 billion).

Last year, Dubai reported Dh761 billion worth of real estate transactions, a 20% increase from 2023, according to the recent data provided by the Dubai Media Office.

Last year, Aldar launched 12 projects, like the ones in Ras Al Khaimah and Dubai. Its two residential community projects were successful when it entered Dubai.

Currently, it has entered Dubai’s commercial real estate market, including the signature office skyscraper on Sheikh Zayed Road.

The Dubai launch attracted foreign investors and expats to the Aldar sales portfolio. They made up 66% in 2023.

Aldar later purchased Al Fahid Island, which is a 3.4 million square meter land bank for Dh2.5 billion to expand its portfolio.

This project has been waiting in the market for a long time and would raise the standard for luxury and pricing bars for Abu Dhabi residential retreats.

Aldar’s Board of Directors has recommended a dividend of Dh0.185 per share, an increase of 8.8% yearly after their rise in sales figures.

In 2023, it paid Dh1.3 billion and Dh0.17 per share.

Chairman Mohamed Khalifa Al Mubarak said that they will launch their first residential and retail projects in 2025 in the Saadiyat Cultural District, which will be a significant milestone for Aldar, since they are helping establish Adu Dhabi become a global centre for arts and culture.

Chairman added that they believe that their new developments in various regions and expanding their income portfolio will support their growth in the upcoming year.

Since the United Arab Emirates expanded its 10-year golden visa, it attracted many international investors.

He mentioned that Aldar provided exceptional operational and financial performance due to the thriving domestic UAE real estate market, which was possible due to the government policies of making the United Arab Emirates an attractive destination for people and businesses.

Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar stated that by the end of the quarter, Dubai will see the debut of a third residential neighbourhood. The Expo City project is not for sale and will primarily have commercial properties next to new exhibition centre. This is part of joint venture with Dubai Holding and is targeted at freehold investors.

By the end of 2024, Aldar’s UAE revenue backlog has increased to a record Dh45.9 billion, up 57% from Dh29.1 billion the previous year.

They raised Dh11 billion for 2024, including 3.8 billion in the fourth quarter of 2024.

CEO Talal Al Dhiyebi stated that group sales have increased twice during this period, and the revenue backlog has increased three times to Dh55 billion. Their portfolio of investment has also increased significantly to Dh42 billion.

In 2023, Aldar purchased a UK developer, London Square, for Dh1.07 billion,  the first acquisition outside of the Mena region.

London Square made sales worth of Dh1.7 billion, while the sales of its subsidiary Sodic (The Sixth of October for Development and Investment) in Egypt reached Dh3.5 billion.