Emaar Properties said management concluded there was “no material adverse impact” on its core businesses in the GCC, including the UAE, from the conflict involving the United States, Israel and Iran, as the company reported first-half net profit of AED 11.15 billion ($3.04 billion).
The company said it had assessed the implications of the conflict for operations, financial performance, liquidity and asset valuations. Its real estate development operations continued to be supported by its backlog, construction activity and customer collections, while its leasing portfolio was supported by occupancy levels and fixed-rent contracts.
Emaar said hospitality and some entertainment businesses dependent on visitor flows had seen an impact since the conflict began, but these businesses accounted for a smaller part of group performance.
Management recorded an impairment of AED 135 million on property, plant and equipment because of uncertainty over the recoverability of an investment. It said the geopolitical developments were not expected to have a material adverse effect on the group’s financial position, results of operations or cash flows.
Emaar H1 revenue rises to AED 23.91bn
Revenue for the six months to 30 June rose 20.5 per cent to AED 23.91 billion from AED 19.83 billion a year earlier, while net profit increased 25.6 per cent to AED 11.15 billion from AED 8.88 billion.
Profit attributable to owners of the company was AED 8.67 billion, compared with AED 7.08 billion, while profit attributable to non-controlling interests was AED 2.48 billion, against AED 1.80 billion. Basic and diluted earnings per share rose to AED 0.98 from AED 0.80.
For the three months to 30 June, revenue reached AED 11.51 billion from AED 9.74 billion in the same period of 2025. Net profit was AED 4.74 billion, compared with AED 4.24 billion, while profit attributable to owners reached AED 3.67 billion from AED 3.37 billion. Earnings per share was AED 0.42, against AED 0.38.
Gross profit for the six-month period was AED 13.38 billion, compared with AED 11.13 billion. Profit before tax reached AED 12.80 billion from AED 10.42 billion.
Other operating income was AED 329.6 million and other operating expenses were AED 108.8 million. Selling, general and administrative expenses rose to AED 1.92 billion from AED 1.47 billion.
Depreciation of property, plant and equipment was AED 417.1 million, while depreciation of investment properties was AED 438.1 million. Finance income reached AED 1.46 billion from AED 1.34 billion, while finance costs were AED 464.5 million, compared with AED 447.6 million.
The group recorded AED 273.8 million in other income, compared with AED 203.2 million, while its share of results from associates and joint ventures increased to AED 834.3 million from AED 191.8 million.
Total comprehensive income was AED 10.84 billion, compared with AED 9 billion a year earlier. Of this, AED 8.43 billion was attributable to owners of the company and AED 2.41 billion to non-controlling interests.
Residential sales account for AED 18.26bn
Revenue from sales of residential units increased to AED 18.26 billion from AED 13.94 billion. Revenue from commercial units, land and other property sales was AED 860.7 million, compared with AED 907 million.
Leasing, retail and related revenue reached AED 3.93 billion from AED 3.89 billion, while hospitality revenue fell to AED 860 million from AED 1.10 billion.
Revenue recognised from contracts with customers under IFRS 15 was AED 20.54 billion, compared with AED 16.74 billion, while lease revenue under IFRS 16 reached AED 3.37 billion from AED 3.09 billion.
Cost of revenue was AED 10.53 billion, including AED 9.15 billion for residential units, AED 434.8 million for commercial units, land and other property, AED 422.9 million for hospitality and AED 520.2 million for leasing, retail and related operations.
By business segment, real estate generated AED 19.12 billion in revenue in the first half, compared with AED 14.85 billion a year earlier. Leasing, retail and related activities generated AED 3.93 billion, compared with AED 3.89 billion, while hospitality generated AED 860 million, down from AED 1.10 billion.
Profit before impairment, tax and unallocated items was AED 10.05 billion for real estate, AED 2.74 billion for leasing and retail, AED 214.1 million for hospitality and AED 236.7 million for other operations.
Capital expenditure on property, plant and equipment and investment properties was AED 947.7 million, compared with AED 925 million a year earlier.
UAE operations generate AED 22.45bn of revenue
Revenue from UAE operations reached AED 22.45 billion for the six months, compared with AED 18.59 billion in the same period of 2025. Revenue from operations outside the UAE was AED 1.46 billion, against AED 1.25 billion.
At 30 June, assets linked to UAE operations were AED 161.79 billion and liabilities were AED 66.48 billion. Assets outside the UAE stood at AED 31.19 billion and liabilities at AED 17.62 billion.
Capital expenditure was AED 881.9 million in the UAE and AED 65.9 million outside the country.
For the three months to June, UAE revenue was AED 10.88 billion, compared with AED 9.22 billion a year earlier. Revenue outside the UAE was AED 632.7 million, against AED 516.9 million.
Cash from operations falls to AED 11.57bn
Net cash flow from operating activities was AED 11.57 billion, compared with AED 18.88 billion in the first half of 2025.
Cash generated from operations was AED 11.78 billion, against AED 19.05 billion. Working-capital movements included AED 4.79 billion from advances from customers, compared with AED 7.79 billion a year earlier.
Investing activities used AED 2.96 billion, compared with AED 746.4 million. The group placed AED 4.01 billion into deposits with maturities of more than three months, including deposits under lien.
It spent AED 481.1 million on property, plant and equipment and AED 466.7 million on investment properties, while receiving AED 1.28 billion in finance income and AED 383.8 million in dividends from associates and joint ventures.
Financing activities used AED 10.53 billion, including AED 9.63 billion in dividend payments, AED 764.1 million in loan repayments, AED 445.5 million in finance costs and AED 80.2 million in lease-liability payments. Borrowing drawdowns totalled AED 394 million.
Cash and cash equivalents fell by AED 1.91 billion during the period to AED 51.39 billion.
Of that balance, AED 49.69 billion was held in the UAE and AED 1.70 billion outside the country. AED-denominated balances accounted for AED 50.25 billion.
The group said AED 44.13 billion of bank and cash balances represented advances from customers against development property sales held in escrow accounts. These balances were not under lien.
Emaar assets reach AED 192.99bn
Total assets stood at AED 192.99 billion at 30 June, compared with AED 186.70 billion at the end of 2025. Total liabilities reached AED 84.10 billion from AED 79.02 billion, while total equity was AED 108.88 billion, compared with AED 107.68 billion.
Customer advances were AED 45.51 billion, trade and other payables AED 19.34 billion, income tax payable AED 5.40 billion, retentions payable AED 3.16 billion, interest-bearing loans and borrowings AED 3.01 billion and sukuk AED 6.43 billion, according to the statement of financial position on page six.
Development properties reached AED 51.64 billion from AED 50.24 billion. The company incurred AED 11.49 billion in development costs and transferred AED 9.59 billion to cost of revenue. Currency translation movements reduced the balance by AED 505 million.
Development properties included AED 35.87 billion in the UAE and AED 15.77 billion outside the country.
Trade and unbilled receivables stood at AED 11.60 billion, compared with AED 11.14 billion. Other assets, receivables, deposits and prepayments increased to AED 14.43 billion from AED 12.02 billion.
Other financial assets increased to AED 23.52 billion from AED 19.94 billion, including AED 22.16 billion in deposits with original maturities of more than three months and AED 1.35 billion in securities. Loans to associates and joint ventures stood at AED 1.17 billion.
Emaar plans sale of EII Capital stake
Investments in associates and joint ventures stood at AED 7.37 billion, compared with AED 6.97 billion at the end of 2025.
The portfolio includes stakes in Emaar, The Economic City, Amlak Finance, Emaar Dubai South, DWTC Emaar, Downtown DCP, Turner International Middle East and other ventures.
Emaar received an offer from an investor for its 42.27 per cent interest in EII Capital and agreed in principle to the sale. Management expects the transaction to be completed in September 2026, subject to completion formalities.
The investment, with a carrying amount of AED 109 million, was classified as an asset held for sale. Emaar recognised a loss of AED 16 million after measuring it at fair value less costs to sell.
The group’s disclosed stakes include 13.6 per cent in Emaar, The Economic City; 48.08 per cent in Amlak Finance; 50 per cent in Emaar Bawadi; 65 per cent in Turner International Middle East; 42.27 per cent in EII Capital; 50 per cent in Emaar Dubai South; 50 per cent in DWTC Emaar; 20 per cent in Downtown DCP; 61.25 per cent in Old Town Views; and 50 per cent in Rove Hospitality.
Borrowings fall to AED 3.01bn
Interest-bearing loans and borrowings fell to AED 3.01 billion from AED 3.38 billion after AED 394 million of drawdowns and AED 764.1 million of repayments.
AED 1.85 billion is due within 12 months and AED 1.16 billion after 12 months. AED 3.01 billion of the borrowing balance relates to operations outside the UAE. Emaar said it complied with the financial covenants applying to its loans.
The facilities include AED 3.7 million drawn under a AED 3.67 billion revolving credit facility carrying EIBOR plus 0.95% and repayable by 2030.
A subsidiary in Turkey has AED 569.3 million of loans at three-month EIBOR plus 0.90 per cent, repayable by 2027. Facilities in Egypt include AED 13.6 million at 11.28 per cent and AED 266.4 million at 19.5 per cent. Facilities in Pakistan total AED 438.5 million and are linked to KIBOR, while bank loans in India total AED 1.72 billion at rates of 6.55 per cent to 8.78 per cent, with repayment by 2029.
Sukuk liabilities totalled AED 6.43 billion.
Sukuk 3 had a carrying value of AED 2.75 billion, a distribution rate of 3.64 per cent and a 2026 maturity. Sukuk 4 stood at AED 1.84 billion, carries a rate of 3.875 per cent and matures in 2029. Sukuk 5 stood at AED 1.83 billion, carries a rate of 3.7 per cent and matures in 2031.
The sukuk were issued under Emaar Sukuk Limited’s programme of up to $2 billion and are listed on Nasdaq Dubai.
Tax expense reaches AED 1.65bn
Income tax expense reached AED 1.65 billion, including AED 948 million of current income tax and AED 872 million under the UAE Domestic Minimum Top-up Tax, offset by a deferred-tax credit of AED 171 million.
The group’s estimated effective tax rate was 12.9 per cent, compared with 14.8 per cent in the first half of 2025. Income tax payable reached AED 5.40 billion from AED 3.79 billion at the end of 2025.
Emaar said it falls within the scope of the UAE’s 15 per cent Domestic Minimum Top-up Tax. It also applied Ministerial Decision 120 of 2023 on UAE property taxation and recognised tax relief after receiving clarification from the Federal Tax Authority.
Emaar pays AED 8.84bn dividend
Emaar paid a cash dividend of AED 8.84 billion, equal to AED 1 per share, for 2025 after shareholders approved the distribution at the annual general meeting on 25 March 2026.
Share capital remained AED 8.84 billion, comprising 8,838,789,849 issued and fully paid shares with a nominal value of AED 1 each.
Equity attributable to owners stood at AED 93.87 billion, while non-controlling interests were AED 15.01 billion. Reserves were AED 25.94 billion after movements in investment valuation and currency translation reserves.
Expenses, guarantees and commitments
Selling, general and administrative expenses included AED 732.3 million in sales and marketing expenses, AED 404.1 million in payroll and related expenses, AED 127.8 million in property management expenses, AED 53 million in depreciation of right-of-use assets, AED 38.2 million in provisions for doubtful receivables and advances, AED 208 million in donations and AED 354.1 million in other expenses.
An investment committee of a subsidiary approved AED 200 million in donations after a resolution at an annual general meeting on 26 March 2026.
Finance income included AED 1.34 billion from bank deposits and securities and AED 118.4 million from other finance income. Finance costs included AED 234.1 million on borrowings and AED 230.4 million in other finance costs.
The company recorded a net foreign-currency translation gain of AED 49.7 million for the six months and a loss of AED 302.6 million for the second quarter.
Emaar disclosed financial guarantees and letters of credit of AED 216.8 million, a AED 5 million guarantee linked to the issuance of a Dubai trade licence and performance guarantees of AED 5.97 billion to Dubai’s Real Estate Regulatory Authority.
It also disclosed AED 88.7 million in performance guarantees to government authorities in India, with AED 3.5 million under lien, and a AED 202,000 credit-card facility in Egypt backed by a AED 284,000 lien.
Commitments totalled AED 36.09 billion at 30 June, compared with AED 35.45 billion at the end of 2025. This included AED 35.71 billion in project commitments, compared with AED 35.04 billion.
Minimum rentals due under operating leases totalled AED 16.45 billion, comprising AED 5.09 billion within one year, AED 9.66 billion between one and five years and AED 1.70 billion after five years. The group also has lease agreements where rent is based on tenant turnover and service charges.
India disputes remain before courts and tribunals
In India, disputes involving Andhra Pradesh Industrial Infrastructure Corporation, Telangana State Industrial Infrastructure Corporation and Emaar Hills Township remain before courts and tribunals.
The businesses involved have assets of INR 5.05 billion, or AED 202 million, and liabilities of INR 1.31 billion, or AED 52 million.
The National Company Law Tribunal and National Company Law Appellate Tribunal have ruled on the maintainability of a petition, while India’s Supreme Court declined to interfere with the NCLAT orders and left the issue open for final adjudication.
Emaar Hills Township has also sought arbitration, with the application pending before the NCLT.
A separate dispute concerns Emaar MGF Construction Private Limited and the Delhi Development Authority over the Commonwealth Games Village.
The DDA invoked a bank guarantee of INR 1.83 billion, or AED 80 million. EMCPL filed claims of INR 14.18 billion, or AED 567 million, while DDA filed a counterclaim of INR 14.46 billion, or AED 578 million.
Arguments before the arbitral tribunal have started and have not concluded. Management said it believes the damages, bank guarantee invocation and other claims raised by the DDA are not justified under the project agreement.
Related-party transactions and accounting
Related-party transactions during the period involved associates, joint ventures, management personnel and their related parties.
Trade and other payables to associates, joint ventures and others stood at AED 2.04 billion. Trade and unbilled receivables from these parties were AED 221,000.
Balances involving management personnel and related parties included AED 5.1 million in trade and unbilled receivables, AED 23.5 million in other assets and receivables, and AED 276.2 million in trade and other payables.
Compensation of management personnel was AED 54.7 million, compared with AED 55.9 million a year earlier.
The interim accounts were prepared under IAS 34 and UAE Federal Decree Law No. 32 of 2021, as amended, on a going-concern basis.
Emaar said accounting policies and methods were the same as those used for its 2025 accounts, except for standards and changes disclosed in the filing.
Accounting amendments taking effect from 1 January 2026 had no material impact. IFRS 18, IFRS 19 and amendments to IAS 21 take effect from 1 January 2027. Emaar said it did not expect a material impact from those standards other than IFRS 18.
Ernst & Young Middle East reviewed the interim accounts under International Standard on Review Engagements 2410.
EY said the review was narrower in scope than an audit and that it did not express an audit opinion. It said “nothing has come to our attention” that caused it to believe the statements were not prepared, in all material respects, in accordance with IAS 34.
The review report was dated 6 August 2026 in Dubai.
Emaar was established in 1997 and its shares are traded on the Dubai Financial Market. Its activities cover property investment, property development and management, malls and retail, hospitality, property management, utility services and investments in providers of financial services. The interim statements were authorised for issue on August 6, 2026.
