Emaar Properties has announced that both S&P Global Ratings and Moody’s Investors Service have upgraded the company’s long-term credit ratings, assigning a stable outlook.
S&P upgraded Emaar’s long-term rating from BBB to BBB+, while Moody’s raised its rating from Baa2 to Baa1, both with a stable outlook.
This credit rating enhancement from both agencies also included Emaar’s unsecured senior debt.
As of March 2025, Emaar’s accumulated revenue from ongoing real estate projects is approximately AED 127 billion ($34.6 billion), providing a clear forecast for the company’s revenue and cash flows through to 2028.
S&P’s upgrade was attributed to unprecedented growth in accumulated sales from ongoing projects, reaching AED 110 billion ($29.9 billion) by December 2024, alongside stable pre-sales, which amounted to AED 65.4 billion ($17.8 billion) during 2024, combined with the company’s net cash position, low debt levels, and profit margins.
Moody’s noted a significant reduction in Emaar’s adjusted debt from 2020 to March 2025, along with a decline in the debt-to-equity ratio during the same timeframe.
Mohamed Alabbar, founder of Emaar, stated, “We are proud of this positive evaluation from S&P and Moody’s, which confirms the success of our company’s strategy, the high quality of our assets, and our commitment to disciplined financial management. Achieving this distinguished rating not only reflects our strong performance but also embodies confidence in Dubai’s economy and its real estate market. We are committed to sustainable growth, innovation, and providing exceptional value to our shareholders and all investors involved.”
Strong Liquidity and Operational Flexibility
Emaar reported an interest coverage ratio of about 24 times for the twelve months ending in March 2025, with cash liquidity of AED 25.4 billion ($6.9 billion) (excluding escrow account balances), alongside committed but undrawn credit facilities totaling AED 7.4 billion ($2 billion), providing ample liquidity and high financial flexibility.
S&P noted that Emaar’s efficiency in sectors such as shopping malls, hospitality, and entertainment, along with its agile real estate development operations, contributed to the rating upgrade. For instance, Dubai Mall attracted more than 111 million visitors in 2024, with an overall occupancy rate of 98.5% across its shopping mall portfolio.