Aldar’s revenue for the second quarter rose 27% to AED 3.5 billion ($952 million), supported by strong development sales and high occupancy rates across its extensive portfolio. The company’s diverse property offerings in prime locations such as Abu Dhabi, Dubai, and Ras Al Khaimah have seen heightened interest from both local and international buyers.
Talal Al Dhiyebi, CEO of Aldar, attributed the financial success to strategic launches and the sustained appeal of the UAE as a premier investment destination. Aldar launched ten new projects in the first half of 2024, surpassing the total number of launches in 2022. This aggressive expansion has been instrumental in achieving record sales and revenue growth.
Group sales for Q2 2024 reached a record AED 8.5 billion ($2.3 billion), reflecting a 125% increase from the same period last year. The substantial growth in sales is driven by a combination of new project launches and strong demand from overseas and resident expatriate buyers. Overseas buyers accounted for a significant portion of the sales, underscoring the UAE’s growing reputation as a top-tier destination for real estate investment.
Aldar’s recurring income portfolio, which includes high-occupancy residential, commercial, and retail properties, contributed significantly to the overall revenue. The company’s revenue backlog stood at a record AED 24.4 billion ($6.6 billion) by the end of Q2, providing strong visibility on future earnings.
The development segment recorded a 12% increase in revenue to AED 2.0 billion ($545 million) for Q2, while EBITDA from this segment rose 43% to AED 715 million ($195 million). This growth was fueled by continued progress in construction and revenue recognition from the substantial development backlog.
In addition to its UAE operations, Aldar’s international ventures, including its investment in the Egyptian real estate company SODIC, also performed well. SODIC contributed AED 158 million ($43 million) to Aldar’s Q2 revenue, with significant sales driven by new project launches and strong demand in the Egyptian market.
Aldar’s strategic focus on sustainability and innovation continues to play a pivotal role in its growth trajectory. The company’s commitment to enhancing its environmental, social, and governance (ESG) standards has been well-received by investors and stakeholders, further solidifying its market leadership.
Looking ahead, Aldar plans to expand its footprint within the UAE and internationally. Upcoming projects include major developments in Dubai and Ras Al Khaimah, aimed at tapping into the growing demand for luxury and sustainable living spaces. The company’s ambitious growth agenda is set to drive further value creation and long-term success.
Aldar’s financial performance in Q2 2024 reflects its robust operational execution and strategic foresight in navigating the dynamic real estate market. With a strong pipeline of projects and a clear focus on sustainable growth, Aldar is well-positioned to continue its upward trajectory in the coming quarters.
Sources: Aldar Properties, Zawya, Gulf News