Emaar Properties rating afirmed at BBB+; outlook stable: S&P Global

Logo of Emaar Properties 

Dubai-listed Emaar Properties announced that S&P Global Ratings has maintained its long-term credit rating at BBB+ with a stable outlook.

According to the company's disclosure, the agency’s periodic reviews do not represent a new rating action, and the credit rating and outlook remain unchanged compared to the last action dated March 17, 2025.

The statement indicated that the agency assessed Emaar’s business risk profile as satisfactory and its financial risk profile as moderate, describing its liquidity as exceptional, supported by the company’s leading role in luxury real estate development in the UAE, diversified profit sources, and a strong balance sheet.

The agency noted that Emaar recorded an accrued project revenue backlog of about AED 165 billion as of June 30, 2026, providing clear visibility on future revenue. Its adjusted EBITDA reached AED 24.4 billion in 2025.

The agency added that shopping mall leasing operations contributed more than 22% of adjusted EBITDA in H1 2026, supported by an occupancy rate nearing 98%, along with debt reduction and maintaining a net cash position and exceptional liquidity levels.

Emaar stated that the agency took into account the company’s exposure to volatility in the development sector, capital intensity, concentration of revenue and assets in Dubai, variability in working capital requirements, as well as higher capital expenditure and dividend distributions, which reduce the company’s ability to generate discretionary cash flows in 2026 and 2027.

As for the stable outlook, Emaar cited the agency as saying it reflects expectations the company will maintain strong credit metrics in 2026-2027 despite higher capital spending and distributions. Lower leverage and strong liquidity are expected to support Emaar in dealing with repercussions of Middle East conflicts and any potential slowdown in real estate sales.

The agency forecast that the ratio of adjusted operating cash flow to debt will remain around 60% or higher, and the adjusted debt to EBITDA ratio will stay sustainably below 0.5x.

Emaar commented that it continues to implement a prudent financial policy, maintaining net cash and strong liquidity, and confirmed that any agency estimates or outlooks in agency publications reflect the agency's own opinion and do not represent company guidance.

It is noteworthy that in June 2025, S&P upgraded Emaar’s long-term credit rating from BBB to BBB+ with a stable outlook, while Moody’s raised its rating from Baa2 to Baa1 with a stable outlook.
 

Emaar Properties PJSC (EMAAR) – Credit Rating Disclosure Template