Aldar Development’s Q2 2023 revenue increased 12% YoY to AED 2.0 billion with EBITDA increasing 43% YoY to AED 715 million. This was driven by construction progress and continued development backlog revenue recognition. H1 2023 revenue increased 10% to AED 3.9 billion compared to the same period last year with EBITDA increasing 32% YoY to AED 1.3 billion.
Group sales in Q2 2023 reached a record of AED 7.0 billion, a 125% increase from the same period last year. Meanwhile, H1 2023 group sales increased 117% YoY to AED 11.6 billion. This marks Aldar’s highest-ever quarterly and half-yearly sales, driven by a record number of launches and strong demand from a growing vein of overseas and resident expat buyers in the UAE.
G8roup revenue backlog reached a record AED 24.4 billion year to date, providing strong visibility on the group’s revenue across both the UAE and Egypt with revenue recognition expected over the next 4 years.
Project management services backlog of AED 61 billion demonstrates the long-term and perpetual nature of the franchise with AED 2.2 billion in new projects awarded year-to-date.
Total sales for Q2 2023 reached a record AED 6.4 billion, up 156% YoY, driven by high demand for existing inventory from Q1 launches as well as new Q2 launches including AlKaser, Reeman Living 2, and The Source 2. H1 2023 UAE sales increased 164% YoY to AED 10.6 billion.
Sales from overseas and expat buyers reached a record AED 3.3 billion in Q2 2023 underscoring the emergence of Abu Dhabi as a premier investment and lifestyle destination and the success of Aldar in attracting demand from a diverse range of international investors and expat resident buyers. Meanwhile, H1 2023 sales from overseas and expat buyers totalled AED 5.2 billion, representing a four-fold increase compared to H1 2022.
Revenue backlog of AED 19.9 billion, increased 65% year to date with an average duration of 29 months. Cash collections stood at AED 1.55 billion.
In Egypt operations SODIC contributed AED 158 million (EGP 1.3 billion) to Aldar Development’s Q2 2023 revenue, with EBITDA standing at AED 49 million (EGP 409 billion). SODIC’s H1 2023 revenue stood at AED 335 million (EGP 2.7 billion), with EBITDA reaching AED 72 million (EGP 590 million).[1]
SODIC Q2 2023 sales reached AED 630 million (EGP 5.3 billion) while H1 2023 sales totalled AED 976 million (EGP 8 billion). Revenue backlog for SODIC reached AED 4.5 billion (EGP 37.8 billion), with an average duration of 25 months, providing strong visibility on revenue over the next 2-3 years. SODIC continues to maintain a strong liquidity position with total cash and cash equivalents amounting to AED 191 million (EGP 1.6 billion).
“I am pleased to report that Aldar has produced a strong financial performance in the first half of 2023, driven by effective implementation of its ambitious growth strategy in the context of the UAE’s robust macro-economic fundamentals. Solid consumer and business confidence is supporting domestic demand, which is translating into strong development sales and high occupancy across the company’s portfolio of prime assets,” said H.E. Mohamed Khalifa Al Mubarak Chairman Of Aldar Properties
“This is a direct result of the successful socio-economic reforms enacted by the UAE government, which have positioned the country as a premier lifestyle, investment and business destination. Aldar continues to build on its formidable track record, capitalising on significant opportunities to deliver sustainable value to all our stakeholders,” he added.
This core business unit comprises three main segments: Property Development and Sales, which is responsible for developing and marketing Aldar’s diverse and strategic land bank located in key investments zones across Abu Dhabi, Dubai, and Ras Al Khaimah; Project Management Services, which manages Aldar's project management business, including government housing and infrastructure projects in the UAE; and Egypt, which manages Aldar’s investment in Egyptian real estate company SODIC.
