Emaar Properties Sees Credit Rating Boost
Emaar Properties receives credit rating upgrades from S&P and Moody's, highlighting its financial strength and strategic growth.
Summary
Emaar Properties' credit ratings have been upgraded by S&P and Moody's, reflecting strong financial performance and strategic agility.
In an impressive display of financial resilience and strategic foresight, Emaar Properties PJSC, a leading real estate development company in the United Arab Emirates, has received significant credit rating upgrades from two of the world's foremost credit rating agencies, S&P Global Ratings and Moody's. This development underscores Emaar's robust financial health and strategic agility, positioning it as a formidable player in the global real estate market.
On June 11, 2025, S&P Global Ratings elevated Emaar's long-term issuer credit rating to BBB+ from BBB, while Moody's upgraded its rating to Baa1 from Baa2, both with stable outlooks. These upgrades are a testament to Emaar's consistent performance and sound strategic direction, as well as its ability to maintain a strong financial position amidst challenging market conditions.
The financial metrics driving these upgrades are impressive. As of March 2025, Emaar reported a revenue backlog of approximately AED 127 billion (US$ 34.6 billion), providing strong revenue and cash flow visibility through 2028. The company's recurring income portfolio continues to expand, supported by disciplined execution, resilient operations, and diversified income streams. This robust financial foundation is further strengthened by a record-high backlog of AED 110 billion (US$ 29.9 billion) as of December 2024, and healthy presales in the UAE totaling AED 65.4 billion (US$ 17.8 billion) during 2024.
Moreover, Emaar's strategic execution has led to a significant reduction in adjusted debt from 2020 to March 2025, alongside a drop in the debt-to-equity ratio over the same period. These financial achievements have not gone unnoticed, with Mohamed Alabbar, Founder of Emaar, expressing pride in the recognition from both S&P and Moody's. He emphasized that these upgrades reflect not only Emaar's performance but also the confidence in Dubai's economy and real estate market.
For investors, these developments present a compelling case for Emaar Properties as a solid investment opportunity. The company's strong financial position, coupled with its strategic agility and market leadership, suggests that Emaar is well-positioned to capitalize on future growth opportunities. As such, investors may consider holding onto Emaar shares to benefit from potential long-term value appreciation.
Source
Summary
S&P Global Ratings and Moody's have upgraded Emaar Properties' credit ratings due to its strong financial performance and robust revenue visibility. S&P raised Emaar's long-term issuer credit rating to BBB+ with a stable outlook, while Moody's upgraded it to Baa1 with a stable outlook. These upgrades apply to Emaar's senior unsecured debt as well. As of March 2025, Emaar reported a revenue backlog of approximately AED 127 billion, indicating strong revenue and cash flow visibility through 2028. S&P's decision was influenced by Emaar's record-high backlog and healthy presales in the UAE, along with a net cash position and low leverage. Moody's noted a significant reduction in Emaar's adjusted debt and a decrease in the debt-to-equity ratio from 2020 to March 2025. Mohamed Alabbar, Emaar's Founder, expressed pride in the recognition from the rating agencies, attributing it to the company's strategic strength, asset quality, and disciplined financial management.
