Real Estate

Emaar’s overseas units struggle to match home gains

March 28, 2025, 2:49 PM

A family strolls in Dubai Marina, developed by Emaar. The company's shares are up 5.5% on the DFM this year

Difficulties in India and Egypt
Damage from foreign currencies
Dubai earnings almost double

Dubai real estate developer Emaar Properties is doing well at home but its international operations – notably in India – are more chequered.

Last year, Emaar posted a near 50 percent increase in earnings to AED5 billion ($1.4 billion). Its shares on the Dubai Financial Market are up 5.5 percent so far this year.

By contrast, revenue at its overseas developer unit Emaar International, which accounts for almost 10 percent of total revenue, has fallen three years in a row, down to AED2.7 billion from AED4.2 billion in 2022.

“Emaar has been taking a generally more conservative approach across international markets than in its home market,” Sara Boutros, sector head for real estate and financials at Egypt-based finance group CI Capital, told AGBI.

Part of the challenge is currency. The UAE dirham is pegged to the dollar. Against that, the currencies of India, Egypt and Pakistan have generally all declined over the three-year period. Egypt devalued its currency by two-thirds this time a year ago. The Indian rupee has lost about 13 percent of its value over the three year period.

Earlier this month, AGBI reported that Emaar was in advanced talks with India’s Adani Group to sell its Indian unit for $1.4 billion.

In 2023-24, Emaar India lost about AED2.4 billion, double that of the preceding year. It has not yet released results for the 2024-25 financial year.

“Unfavourable foreign exchange movements and inflation, primarily in Egypt but also in Pakistan and India” mean that Emaar’s international development will lag in the coming year, according to S&P Global.

Still, it is not all down to currency. In neighboring Saudi Arabia, where the currency is also pegged to the dollar, Emaar Economic City announced this week that it lost $300 million in 2024 on a near 60 percent decline in revenue.

Since its devaluation in March last year, the Egyptian pound has generally held steady, now potentially making the Arab world’s most populous nation a brighter spot for Emaar International.

Profit at its Egypt unit, Emaar Misr, more than doubled in 2024 to EGY15 billion ($300 million), up from EGY7 billion the year before.

“Emaar has built a very solid brand name in Egypt over the years,” said CI Capital’s Boutros. As a result, Emaar is investing and hiring in Egypt.

Though the preceding years were a challenge, Boutros said: “This, however, is finally changing.”