Credit Rating Upgrades Overview
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S&P Global Ratings upgraded Emaar’s long-term issuer credit rating to BBB+ (from BBB), assigning a Stable outlook.
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Moody’s upgraded its long-term issuer rating to Baa1 (from Baa2), also with a Stable outlook.
Key Drivers Behind the Upgrades
Strong Financial Fundamentals
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Emaar’s robust financials and strong backlog were cited as primary reasons.
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As of December 2024, the backlog stood at AED 110 billion (~USD 30 billion).
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As of March 2025, the backlog had grown further to AED 127 billion (~USD 34.6 billion).
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The UAE pre-sales for 2024 amounted to AED 65.4 billion (~USD 17.8 billion).
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Improved Leverage and Liquidity
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Moody’s noted a significant reduction in adjusted debt from 2020 to early 2025, along with a lower debt-to-equity ratio.
Emaar also maintains strong liquidity:-
AED 25.4 billion (~USD 6.9 billion) in cash (excl. escrow)
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AED 7.4 billion (~USD 2 billion) in undrawn committed credit facilities
This equates to an interest coverage ratio of ~24× as of March 2025.
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Strategic Strength & Recurring Income
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S&P highlighted the resilience of Emaar’s mall, hospitality, and entertainment operations (e.g., Dubai Mall drew over 111 million visitors in 2024 with 98.5% occupancy).
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Stable recurring income and disciplined operational strategy were recognized across both agencies.
Leadership Commentary
Founder Mohamed Alabbar stated:
“These upgrades reflect not only our performance, but also the confidence in Dubai’s economy and real estate market.”
Emaar noted in official statements that these rating actions apply to both issuer and senior unsecured debt, reinforcing its financial resilience and strategic agility.
Outlook & Implications
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Stable outlook from both S&P and Moody’s suggests confidence in Emaar’s capacity to sustain healthy credit metrics, liquidity, and operational performance in the years ahead.
The upgrades align with Emaar’s planned expansion, including the finalizing of a Dhs2.98 billion land acquisition in Ras Al Khor by June 2025.
Summary Takeaway
Emaar’s dual credit upgrades reflect its strong financial position—supported by massive presales/backlog, high liquidity, reduced leverage, and diversified recurring income—affirming its leadership in Dubai’s real estate sector and bolstering investor confidence.
