Standard & Poor’s Global does not foresee liquidity pressures on four of its rated real estate development firms amid ongoing regional tensions. These companies include Emaar Properties, BNC Investments (the parent company of Sobha), Amenity Holdings, and Damac Properties.
In a recent report, the agency noted that these real estate firms have been actively engaged in sukuk and debt capital markets to raise funds necessary for land acquisition during the years 2025 and 2026.
Damac and Amenity issued sukuk worth $600 million in February and March 2026, respectively, while BNC Investments and Amenity generated $1.25 billion and $900 million in sukuk in 2025.
Standard & Poor’s stated that “the debt maturity profiles will remain within acceptable limits for these companies in 2026, without the need for new financing.” The capital expenditure needs of pure real estate developers are limited, and investments in small community projects are expected to yield recurring revenues.
The report added, “Damac, Amenity, and BNC’s investments are minimal during the anticipated period (2024-2027).”
Conversely, Emaar has ambitious annual investment plans ranging from AED 10 to 11 billion ($2.72-$3 billion) for the period of 2026-2027, with most of this funding directed toward the Dubai Creek Mall, Dubai Creek Tower, the development of rental housing units, and investments in shopping center assets, particularly the expansion of Dubai Mall.
The report stated, “We believe that a significant portion of the company’s investments can still be deferred, with some projects able to be postponed if necessary.”
While it may be too early for definitive conclusions, Standard & Poor’s expects a reassessment of investment decisions or delays across all real estate development companies. The report indicated that commitments regarding nearly completed assets are likely to continue; however, companies showing flexibility will prioritize liquidity and cash flows over new investments and land acquisitions.