Aldar Reports AED4.4 Billion in 2023 Net Profit, Up 40% YoY
Aldar has made a groundbreaking announcement today, revealing that its net profit for the year 2023 soared by 40%, reaching an impressive AED4.4 billion, compared to its earnings in 2022. This remarkable growth is attributed to the record development sales and an expanded investment portfolio, marking a significant milestone for the Abu Dhabi-listed property behemoth.
The company reported an unprecedented surge in its quarterly development sales, which reached AED8.5 billion in Q4 alone. This peak performance contributed to the full-year sales towering to an all-time high of AED 27.9 billion. Such an extraordinary achievement underscores Aldar’s strong foothold and sustained growth in the real estate sector.
Moreover, the development revenue backlog witnessed a doubled increase to AED 36.8 billion. This expansion grants the company a robust income visibility stretching over the next two to three years. Highlighting its aggressive growth strategy, Aldar launched a total of 14 new projects throughout the year. Notably, the company made a successful entry into the Dubai and Ras Al Khaimah markets, further solidifying its dominant presence in the emirate of Abu Dhabi.
The company’s achievements are also reflective of the strong demand from end-users and investors, with a significant 66% (AED 16 billion) of UAE sales originating from overseas and resident expat buyers.
A critical component of Aldar’s success, the Aldar Investment division, recorded a 40% surge in revenue. This growth was propelled by strategic acquisitions, active asset management, and an overall strong performance across the business.
Mohamed Khalifa Al Mubarak, the Chairman of Aldar, remarked on the company’s financial success, highlighting the integral role of the robust UAE economy. The thriving and business-friendly environment within the UAE continues to set a conducive backdrop for the real estate market’s growth. “Leveraging its unique platform, Aldar accelerated its transformative growth trajectory in 2023 to deliver remarkable earnings growth,” Al Mubarak noted. He emphasized the company’s ambition to leverage secular trends and transition towards a net-zero economy, aiming to sustain and enhance its significant contributions to the UAE’s socio-economic development and real estate sector growth.
Talal AL Dhiyebi, the Group CEO, elaborated on Aldar’s transition into a world-class industry leader, marking substantial growth over the past five years. “Development sales in 2023 surged tenfold compared to 2018, the gross asset value of our investment property portfolio grew by more than fifty percent, and net profit more than doubled, reaching AED 4.4 billion.” Such explosive growth not only illustrates the company’s wide-reaching success across its core businesses but also highlights its geographic and sector diversification, scale enhancement, and bolstered long-term resilience. AL Dhiyebi further expressed confidence in the company’s platform, which is poised to capitalize on new opportunities to continue driving long-term sustainable growth and shareholder value.
Aldar’s impressive performance in 2023 is a testament to its strategic vision and relentless pursuit of growth. As the company continues to expand its portfolio and market reach, it stands as a pivotal player in shaping the future landscape of the real estate sector in the UAE and beyond.
