Emaar gets a credit rating boost
Emaar gets a credit rating boost after an upgrade from both S&P and Moody’s. S&P Global Ratings upgrades Emaar to BBB+ with Stable Outlook; Moody’s upgrades its rating to Baa1 with Stable Outlook.
S&P Global and Moody’s – two of the biggest rating agencies in the world – have acknowledged the strong financial position and revenue visibility of Emaar Properties by upgrading the company’s long-term issuer credit ratings.
Emaar has strengthened its reputation as a financially resilient and strategically agile market leader. S&P Global Ratings has upgraded Emaar’s long-term issuer credit rating from BBB to BBB+, maintaining a stable outlook. Similarly, Moody’s has raised its rating from Baa2 to Baa1, also with a stable outlook. This upgrade from S&P and Moody’s also applies to Emaar’s senior unsecured debt.
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Financials Driving Emaar Rating Upgrades
As of March 2025, the property developer 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, supported by disciplined execution and operations.
Mohamed Alabbar, Founder of Emaar, commented: “We are proud to receive this recognition from both S&P and Moody’s, which underscores the strength of our strategy, the quality of our assets, and the discipline we maintain in financial management.” – helping the Emaar credit rating boost.
“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 upgrade rationale, S&P Global said: “The upgrade reflects the significant growth Emaar experienced in Dubai residential real estate, along with the steady performance of malls, hospitality, and entertainment that lends resilience to the cyclical development business.
Data Supporting Emaar Credit Rating
“Emaar’s credit ratios remained strong as revenue grew 33 percent and EBITDA 12 percent in 2024. The company was in a net cash position with no leverage, with AED 19.1 billion of discretionary cash flow (DCF). We forecast strong revenue growth to continue in 2025-2026 with S&P Global Ratings-adjusted EBITDA margins of 42-45 percent, which will support Emaar’s financial metrics despite rising capex and dividends based on the new policy.”
Moody’s highlighted a significant reduction in adjusted debt of Emaar from 2020 to March 2025 and the drop in debt-to-equity ratio over the same period.
In its report, Moody’s said Emaar Properties has sufficient liquidity to cover debt maturities of AED 4.8 billion (US$1.3 billion) through June 2026.
Moody’s said: “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 issued a stable outlook, reflecting their expectation that Emaar will maintain solid credit metrics, strong liquidity, and continued operational performance.
These dual upgrades reinforce the company’s reputation as a leading player in the global real estate sector, anchored in a dynamic and fast-growing market. See more details about future projects in the UAE.
Source: Arabian Business