Aldar’s H1 Profit Soars to Dh4.9B Amid Strong Dubai Property Backlog
Khaleej Times
Aldar Properties reports 18% rise in H1 net profit to Dh4.9B, driven by robust development backlog and steady rental income.
Aldar Properties Posts Robust First-Half 2026 Results
Aldar Properties has announced an 18% year-on-year increase in net profit after tax for the first half of 2026, reaching Dh4.9 billion. This impressive growth has been supported by revenue recognition from an extensive development backlog and consistent earnings from its investment property portfolio.
Revenue and Profit Growth Highlights
For the six months ending June 30, Aldar's revenue grew by 8% to Dh16.8 billion, while gross profit climbed 17% to Dh6.2 billion. EBITDA saw a 19% increase, rising to Dh6.3 billion, and earnings per share improved by 17% to Dh0.53.
In the second quarter alone, net profit increased 17% to Dh2.6 billion on revenue of Dh8.1 billion, a 5% rise year-on-year. Quarterly EBITDA was up 18% to Dh3.3 billion, demonstrating sustained operational efficiency.
Strong Development Backlog Drives Revenue Visibility
The Abu Dhabi-based developer highlighted its substantial development backlog amounting to Dh71.6 billion as of June 30. This includes Dh59.9 billion within the UAE market, providing clear revenue visibility for the next two to three years.
Despite this, group development sales declined by 34% year-on-year to Dh12.1 billion in H1, with a 46% drop in UAE sales to Dh9.4 billion. Aldar attributes this slowdown to a strategic, measured approach in launching new projects in response to current market conditions. In Q2, group sales fell 43% to Dh5.4 billion and UAE-specific sales decreased 61% to Dh3.5 billion.
International and Expat Buyers Fuel Demand
Aldar noted that international and expatriate buyers remained significant contributors to demand. Sales to overseas and expatriate residents totaled Dh7.6 billion in H1, representing 80% of UAE sales.
Mohamed Khalifa Al Mubarak, Chairman of Aldar, commented, “As Abu Dhabi continues to invest in infrastructure, industries, and quality of life that attract people and capital to the emirate, Aldar is both a contributor to and beneficiary of that growth. We are well positioned to keep building on this performance.”
Business Segments Showing Strength
Talal Al Dhiyebi, Group CEO of Aldar, said, “Our first-half performance was solid, marked by healthy operating margins, steady revenue growth, and an 18% increase in net profit year on year. Our development business maintained strong revenue generation from substantial UAE backlog deliveries, while operations in the UK and Egypt continued to gain momentum.”
Aldar Development, encompassing UAE, Egypt, and UK, reported revenue of Dh12.4 billion in H1, a 10% rise, with EBITDA growing 21% to Dh4.0 billion.
Internationally, Egypt’s SODIC doubled its sales to Dh1.4 billion (171% increase), and the UK’s London Square witnessed a 236% jump to Dh1.2 billion in sales.
Meanwhile, Aldar Investment, overseeing income-generating assets, saw a 12% revenue increase to Dh4.2 billion and an 18% rise in adjusted EBITDA to Dh1.8 billion. Assets under management stood at Dh56 billion.
The investment portfolio enjoyed high occupancy rates: 99% in commercial assets, 96% in residential properties, and 97% in industrial and logistics sectors. The develop-to-hold pipeline was valued at Dh20 billion at the end of June.
Strengthened Financial Position
Aldar also improved its balance sheet by securing a Dh5 billion sustainability-linked revolving credit facility, boosting total liquidity to Dh37.1 billion. This liquidity comprises Dh16.8 billion in cash and Dh20.3 billion in undrawn committed banking facilities.
What This Means for Dubai Real Estate Agents
Aldar’s strong financial performance amidst a selective approach to new project launches signals a maturing market driven by quality and sustainability. Agents should leverage Aldar’s consistent development pipeline and high occupancy rates to attract discerning buyers and investors, especially international clientele who continue to dominate demand in the UAE market.
Based on reporting from Khaleej Times. Summary and analysis by Propilot AI.
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