Emaar Properties has recently received a significant credit rating boost following upgrades from both S&P Global and Moody’s, highlighting its robust financial standing and promising growth prospects. The upgrade not only enhances Emaar’s creditworthiness but also reflects the stability and potential of Dubai’s real estate market. This assessment from the two leading rating agencies solidifies Emaar’s reputation as a resilient market leader in the global real estate sector.
S&P Global and Moody’s, two of the world’s foremost rating agencies, have acknowledged the strong financial position and revenue visibility of Emaar Properties by upgrading the company’s long-term issuer credit ratings.
Reinforcing Emaar’s status as a financially resilient and strategically agile market leader, S&P Global Ratings upgraded its long-term issuer credit rating to BBB+ from BBB, with a stable outlook, while Moody’s elevated its rating to Baa1 from Baa2, also maintaining a stable outlook.
The upgrades from S&P and Moody’s extend to Emaar’s senior unsecured debt, further enhancing the company’s financial credibility in the eyes of investors.
Strong Financials Drive Emaar Rating Upgrades
As of March 2025, Emaar Properties reported a revenue backlog of approximately AED 127 billion (US$34.6 billion), providing strong revenue and cash flow visibility through 2028. The company’s recurring income portfolio continues to expand, bolstered by disciplined execution and effective operations.
Mohamed Alabbar, Founder of Emaar, expressed pride in receiving this recognition from both S&P and Moody’s. He noted, “We are proud to receive this recognition, which underscores the strength of our strategy, the quality of our assets, and the discipline we maintain in financial management.” Alabbar added, “These upgrades reflect not only our performance but also the confidence in Dubai’s economy and real estate market. We will continue to pursue sustainable growth, innovation, and value creation for our shareholders and stakeholders alike.”
In its rationale for the upgrade, S&P Global stated, “The upgrade reflects the significant growth Emaar experienced in Dubai residential real estate, along with the steady performance of malls, hospitality, and entertainment that lend resilience to the cyclical development business.”
According to S&P Global, Emaar’s credit metrics remained strong, with revenue growing by 33 percent and EBITDA by 12 percent in 2024. Notably, the company was in a net cash position, boasting AED 19.1 billion of discretionary cash flow (DCF). They forecast strong revenue growth to continue in 2025-2026, anticipating S&P Global Ratings-adjusted EBITDA margins of 42-45 percent, which will support Emaar’s financial health even in the face of rising capital expenditures and dividends based on the new policy.
Moody’s also highlighted a significant reduction in Emaar’s adjusted debt from 2020 to March 2025, alongside a notable decrease in its debt-to-equity ratio.
In its report, Moody’s emphasized that Emaar Properties has adequate liquidity to cover debt maturities of AED 4.8 billion (US$1.3 billion) through June 2026. Moody’s remarked, “The company’s liquidity is excellent, with a cash balance of AED 25.4 billion (US$7 billion) as of 31 March 2025 (excluding restricted cash in escrow accounts) and undrawn revolving credit facilities of AED 7.4 billion (US$2 billion).”
Both agencies have provided a stable outlook, indicating their belief that Emaar will maintain solid credit metrics, strong liquidity, and continued operational performance.
These dual upgrades reaffirm the company’s status as a leading player in the global real estate sector, anchored in a dynamic and fast-growing market.