Real estate sales fell about 50%; hotel occupancy nears 60%: Alabbar

Mohamed Alabbar, Managing Director of Emaar Properties PJSC

Mohamed Alabbar, Managing Director of Emaar Properties PJSC (EMAAR), said hotel occupancy rates currently stand at nearly 60%, while sales at shopping centers slipped about 15%, even as visitor numbers held steady. He described this as a natural post-cycle correction, following five years of consistent 15% annual growth.

In an interview with CNBC Arabia, Alabbar explained that real estate sales were also impacted, experiencing a decline that could reach up to 50%. However, collections and home cancellation rates have not been affected, maintaining the same levels as before the current tensions.

On the recently approved exceptional dividend from Emaar Properties, Alabbar said that the payout was the result of consistent six-year efforts to control sales growth, construction activity, and reduce debt. He added that after assessing cash flows and sales at the onset of the current regional tensions, liquidity remained strong with additional available cash, prompting the company to allocate a portion to shareholders.

Alabbar confirmed there have been no supply chain delays and stated that several projects will be handed over ahead of schedule. He pointed out that the company resumed tendering for contractors after a temporary pause due to port disruptions following the outbreak of war.

Regarding projects in Syria, he said that all anticipated projects—estimated at $15 billion—will be signed during the first week of October.

He added that investment in Syria is a well-calculated, attractive risk, noting that stability there has markedly improved over the past 22 months and the country is currently in an excellent position.