Credit Rating Upgrade Follows Major Land Deal

Emaar Properties, the Dubai-based master developer, has received credit rating upgrades from both S&P Global and Moody's. These upgrades reflect the company's strong financial performance and the positive outlook for Dubai's real estate market. Emaar is also expanding its land bank through a potential multi-billion dirham deal, including a Dh2.98 billion land acquisition in Ras Al Khor from Amlak Property Investment, expected to close by July 31st.

S&P upgraded Emaar's long-term issuer credit rating to BBB+ from BBB, with a stable outlook, while Moody's upgraded its rating to Baa1 from Baa2, also with a stable outlook. These upgrades are attributed to Emaar's robust financial fundamentals, consistent performance, and strategic direction. The ratings also apply to Emaar’s senior unsecured debt.

Emaar's financial strength is further demonstrated by its substantial revenue backlog. As of the end of March 2025, the company had a revenue backlog of approximately Dh127 billion ($34.6 billion), providing strong revenue and cash flow visibility through 2028. S&P cited Emaar's record-high backlog of Dh110 billion ($29.9 billion) as of December 2024 and healthy UAE presales of Dh65.4 billion as key factors.

Moody’s highlighted the significant reduction in Emaar's adjusted debt from 2020 to March 2025 and the decrease in its debt-to-equity ratio over the same period. These factors, combined with Emaar's expanding recurring income portfolio, contribute to the company's positive financial standing and future prospects.