S&P and Moody’s Boost Emaar’s Credit Ratings to Investment Grade

Emaar Properties PJSC, one of the world’s leading real estate development companies, has announced that both S&P Global Ratings and Moody’s Investors Service have upgraded its long-term credit ratings. The upgrades reflect the company’s strong financial performance, robust revenue backlog, and healthy liquidity profile.

Ratings Overview

S&P Global Ratings raised Emaar’s long-term issuer credit rating from BBB to BBB+, while Moody’s upgraded the company from Baa2 to Baa1. Both agencies assigned a stable outlook, citing confidence in the company's ability to maintain its strong credit metrics over the coming years. The upgrades also apply to Emaar’s senior unsecured debt instruments.

Strong Revenue Visibility and Financial Fundamentals

Emaar’s backlog as of March 2025 reached approximately USD 34.6 billion (AED 127 billion), supporting predictable revenue and cash flows into 2028. This follows a record-high backlog of USD 29.9 billion (AED 110 billion) in December 2024 and UAE pre-sales totaling USD 17.8 billion (AED 65.4 billion) throughout the year. Both rating agencies highlighted Emaar’s low leverage, strong EBITDA margins, and net cash position.

Moody’s noted a significant reduction in adjusted debt levels between 2020 and early 2025, with the company’s debt-to-equity ratio continuing to decline.

Liquidity and Operational Strength

Emaar reported strong interest coverage of approximately 24 times for the 12 months ending March 2025. It holds around USD 6.9 billion (AED 25.4 billion) in cash and USD 2 billion (AED 7.4 billion) in undrawn committed credit facilities, providing the company with substantial financial flexibility.

Recurring income from Emaar’s hospitality, retail, and entertainment segments further supports the company’s stability. The Dubai Mall, a flagship asset, recorded over 111 million visitors in 2024, and the company’s mall portfolio maintained an occupancy rate of 98.5 percent.

Statement from Emaar’s Founder

Mohamed Alabbar, Founder of Emaar, commented on the ratings announcement:

“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. 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.”

Outlook and Market Position

Both agencies’ stable outlooks are based on expectations that Emaar will maintain its strong operating and financial performance, with continued discipline in capital allocation and a balanced funding approach. The upgrades reinforce Emaar’s status as a global property leader backed by Dubai’s resilient economy and a growing base of recurring income assets.