The UAE developer reports a higher sales backlog, supported by recurring income growth.
Strong property sales, rising recurring income, and a growing backlog helped drive Emaar’s Q1 2026 performance.
Emaar Properties reported a sharp rise in first-quarter earnings, reflecting continued strength in Dubai’s real estate sector despite broader regional uncertainty.
The Dubai-listed developer posted net profit before tax of Dh7.2 billion for the quarter ending March 31, marking a 33% increase year-on-year. Revenue rose 23% to Dh12.4 billion, while EBITDA climbed 34% to Dh7.2 billion.
The results were driven primarily by sustained demand across Dubai’s residential property market, particularly within established communities and newly launched projects.
Property Sales Continue to Drive Growth
Emaar’s total property sales reached Dh22.4 billion during the quarter, up 16% compared to the same period last year.
A major contributor to that growth came from Emaar Development, which recorded sales of Dh20.1 billion, reflecting a 22% annual increase.
Revenue from the subsidiary rose 36% to Dh6.9 billion, while net profit before tax jumped 46% to Dh4 billion.
The company also launched 10 new projects during the quarter, including The Heights Country Club & Wellness, a large-scale residential development centered around wellness-focused living and green spaces.
The steady pace of launches highlights how Dubai developers continue to capitalize on strong buyer demand, particularly in lifestyle-oriented and master-planned communities.
Revenue Backlog Reaches Dh163.4 Billion
One of the most significant indicators from the quarter was Emaar’s expanding revenue backlog.
The company said its backlog increased 29% year-on-year to Dh163.4 billion, giving the developer substantial visibility into future earnings.
In real estate, backlog growth is often viewed as a key measure of future revenue stability because it reflects contracted sales yet to be recognized financially.
The figure also signals continued confidence from both local and international buyers in Dubai’s long-term property market.
Malls and Leasing Businesses Continue Delivering Stable Income
Beyond residential development, Emaar’s recurring income businesses also delivered solid growth.
Revenue from the company’s malls, retail, and commercial leasing portfolio increased 15% to Dh1.8 billion during the quarter, while average occupancy across assets reached 98%.
That performance strengthens the continued strength of Dubai’s retail and commercial property sector, particularly in premium locations.
Recurring revenue generated through malls, hospitality, and commercial leasing rose 7% to Dh2.8 billion and contributed nearly 30% of the company’s total EBITDA.
This growing contribution from recurring income streams remains strategically important for Emaar because it reduces reliance on cyclical property sales alone.
Hospitality Performance Faces Regional Pressure
Emaar’s hospitality, leisure, and entertainment segment remained broadly flat at Dh1 billion in revenue.
The company attributed weaker performance in March to the broader regional geopolitical environment, which affected travel and consumer activity across parts of the Middle East.
Still, hospitality remained relatively stable overall, reflecting Dubai’s continued position as a global tourism and business hub despite regional volatility.
Alabbar Highlights UAE Economic Strength
Mohamed Alabbar said the results reflected the underlying strength of the UAE economy.
“Our performance in the first quarter of 2026 reflects the strength and resilience of the UAE economy, which continues to provide a stable foundation despite broader regional volatility,” Alabbar said in a company statement.
The comments come as Dubai’s property market continues attracting international investors, high-net-worth individuals, and expatriate buyers seeking long-term stability and lifestyle advantages.
Dividend Payout Sustains Shareholder Confidence
Emaar also confirmed it recently distributed a dividend of Dh8.9 billion, equivalent to 100% of its share capital.
It marks the second consecutive year the company has issued a payout at that scale, reinforcing investor confidence and the strength of its balance sheet.
As Dubai’s real estate market continues expanding alongside population growth, infrastructure investment, and foreign capital inflows, Emaar remains one of the clearest indicators of broader market momentum across the UAE property sector.
Source: Gulf News
