Emaar Properties’ first-half results point to support from its property backlog, development business and leasing income, while the moderation seen in the second quarter was partly linked to one-off charges and currency movements, according to market analysts.
The Dubai-listed developer reported revenue of AED23.9 billion for the first half of 2026, up 21 per cent year on year, while net profit reached AED11.1 billion, up 26 per cent. Profit before tax rose 23 per cent to AED12.8 billion.
Backlog provides revenue visibility
Vijay Valecha, chief investment officer at Century Financial, said Emaar’s property sales backlog provides visibility over revenue recognition in the coming periods.
Property sales reached about AED26.6 billion in the first half, while the revenue backlog from property sales increased 13 per cent year on year to AED164.9 billion.
“This provides the company with strong revenue visibility,” Valecha said, pointing out to Emaar Development, which reported revenue of AED13.3 billion, up 34 per cent year on year, while profit before tax rose 41 per cent to AED7.8 billion.
The revenue backlog from projects under development in the UAE stood at AED135.7 billion, up 6 per cent from the first half of 2025.
Valecha said the backlog reduces risk around future revenue recognition and should support property revenue as projects move through construction and delivery.
“The company also highlighted that these results demonstrate the strength and resilience of the UAE economy and the company over the long term. Thus, looking ahead, the company’s large sales backlog and track record in execution should support its property revenue this year, while retail leases should help mitigate the drag from the hospitality and entertainment business on the recurring income segment,” he said.
Revenue from malls, retail and the leasing portfolio rose 9 per cent year on year to AED3.5 billion, which according to Valecha provides another source of income alongside the development business.
Q2 profit decline linked partly to one-off items
Nagham Hassan, market analyst at eToro, said the first-half figures also need to be viewed alongside the quarter-on-quarter movement contained in Emaar’s interim accounts. However, according to Hassan, “these initial numbers point to a strong performance across the six-month period.”
Second-quarter net profit was AED4.7 billion, compared with AED6.4 billion in the first quarter, while revenue declined about 7 per cent sequentially.
However, Hassan said donations, an impairment charge and foreign exchange movements accounted for about 60 per cent of the decline in profit between the two quarters.
The accounts show an AED134.7 million impairment charge in the second quarter, while donations reached AED203.3 million.
Hassan’s analysis indicates that much of the quarter-on-quarter profit movement came from charges and currency movements rather than the operating business, although activity moderated during the quarter.
Property sales also fell as Emaar reduced project launches from 10 in the first quarter to one in the second, which Hassan said the company linked the decision on launches to the regional environment rather than a decline in buyer interest.
“Because property sales convert into delivered revenue over a horizon of several years, lower sales in mid-2026 affect projected earnings for 2027 and 2028. Attention now moves to the second half, and specifically to whether new project launches will resume,” Hassan said.
