Abu Dhabi, July 29, 2025 – Aldar Properties PJSC delivered its most eye-catching performance to date, posting a record-breaking AED 4.1 billion net profit for H1 2025—a striking 24% rise year-on-year on the back of rock-solid development sales and surging investment platform performance. Meanwhile, net profit before tax jumped 35% to AED 4.7 billion thanks to robust revenue, wider margins, and strong occupancies. This signal quarter reflects a business firing on all cylinders.
🚀 1. The Big Numbers: Metrics That Matter
| Metric | H1 2024 | H1 2025 | YoY Change |
|---|---|---|---|
| Net Profit (after tax) | AED 3.32 b | AED 4.10 b | +24% |
| Profit (before tax) | — | AED 4.70 b | +35% |
| Revenue + Rental Income | AED 10.91 b | AED 15.52 b | +42% |
| Group Development Sales | AED 13.95 b (est.) | AED 18.30 b | +31% |
| Total Backlog | ~AED 54.6 b | AED 62.3 b (incl. AED 53.4 b in UAE) | Up 14% |
| Adjusted EBITDA (Aldar Investment) | ~AED 1.35 b | AED 1.60 b | +18% |
| Free Cash + Unrestricted Cash | — | AED 12.2 b | — |
| Undrawn Bank Facilities | — | AED 17.5 b | — |
Profits and margins are up meaningfully across both development and investment platforms—highlighting Aldar’s evolution into a more diversified and capital-efficient real estate powerhouse.
🏘️ 2. Development Sales Soar — Expansion and Execution
Five high-profile UAE launches led the charge:
- Two projects on Fahid Island—part of Abu Dhabi’s strategic growth corridor.
- Waldorf Astoria Residences Yas, Manarat Living III, and The Wilds in Dubai, which has quickly become one of Aldar’s most talked-about off-plan developments.
These launches, combined with strong demand for existing inventory, pushed development sales to AED 18.3 billion in H1, including sales to overseas and expatriate buyers totaling AED 14.7 b (84% of UAE volume).
New launches in Abu Dhabi and Dubai, paired with a sharper marketing engine and flexible payment structures, enabled Aldar to convert backlog into cash—collections reached AED 7.9 b, and development revenue grew 50%, hitting AED 11.3 b, with development EBITDA up 47% to AED 3.3 b.
💼 3. Investment Platform: Income Grows with Tenant Strength
Aldar continues to build out its investment portfolio across commercial, retail, residential, logistics, and hospitality verticals:
- Aldar Investment’s Adj. EBITDA climbed 18% to AED 1.60 billion with assets under management rising to AED 47 billion.
- Commercial assets (Masdar City acquisitions, Almarkaz logistics park) performed well:
- Commercial EBITDA: AED 420 m (+11% YoY)
- Residential rental EBITDA: AED 263 m (+35%)
- Retail: AED 277 m (+12%)
- Logistics: AED 35 m (+14%)
- Hospitality, education, and facilities management segments all contributed:
- Hospitality EBITDA: AED 171 m (slight decline due to repositioning)
- Education EBITDA: AED 127 m (+9%), serving ~37,000 students
- Estates services EBITDA: AED 192 m (up 24%)
Occupancy rates remained high: retail at 98%, residential at 98–99%, and logistics at 97%—showcasing robust demand across rental-driven asset classes.
💰 4. Balance Sheet Strength & Liquidity Remain Focus
Aldar’s liquidity profile is extremely impressive:
- Free and unrestricted cash tallied AED 12.2 b
- Committed undrawn lines reached AED 17.5 b
With no near-term debt maturities, a cash-rich balance sheet, and access to low-cost capital, the company is well positioned to:
- Accelerate new community launches (e.g. measuring up to 110,000 new units over the next two years).
- Make opportunistic expansion in commercial and logistics picks.
- Hold fat reserves should macro conditions worsen.
🌏 5. Why Investors Are Buying In Taxes, Chinese Buyers & a Global Appeal
a) Rising Effective Tax Rate & Profit Comparability
Aldar’s effective tax rate rose to 12.2% (from 4.1% in 2024) due to the UAE’s new minimum tax rules. That means H1 profit growth is on a higher post-tax base, making the results even more impressive.
b) International Demand Powers Sales
International buyers now account for 84% of UAE development sales, with Chinese buyers alone contributing AED 1.7 b—exceeding the full-year 2024 volume.
This shift reflects the increased global trust in UAE real estate, fuelled by low taxes, political stability, and premium-tier product appeal.
c) Macro Tailwinds: Supply Constraints & Masterplans
Abu Dhabi continues to roll out ambitious masterplan projects—Fahid Island, Saadiyat, Yas Island—while Dubai and Ras Al Khaimah also contribute to demand growth via tourism and population expansion.
Chairman Mohamed Khalifa Al Mubarak highlighted that “the UAE’s global appeal… propelling our H1 backlog to AED 62.3 b”. CEO Talal Al Dhiyebi added that “disciplined capital deployment and a clear focus on long-term value creation” underpinned the momentum.
⚠️ 6. What Could Go Wrong?
Even with such a performance, key risks to monitor include:
- Rising interest rates globally could cool demand, especially as UAE project delivery accelerates.
- Residential oversupply, particularly in Dubai, could create downward price pressure through 2026–27; some forecasts warn of a 10–15% dip in certain segments.
- Execution risk, as early-stage investment in infrastructure (especially hospitality and new SaaS platforms for education & estates) may sap margins temporarily.
- Geopolitical tensions—particularly investor sentiment shifts from China or Russia—might plague buyer confidence in luxury real estate.
👀 7. What to Watch in H2 & 2026
Investors and market watchers should pay attention to:
- New project launches: How Fahid, The Wilds, and other master-developments progress to sales turnover.
- Net profit trajectory: Whether Aldar can convert backlog execution into continued net profit growth despite a higher tax base.
- Investment platform growth: Especially its logistics and hospitality segments as they start delivering on EBITDA.
- International buyer activity: Whether the Chinese and expat participation continues or slows.
- Liquidity deployment: If Aldar uses its cash pile to expand or retains reserves as buffer.
🏁 Final Take
The headline AED 4.1 billion net profit is more than a number—it’s proof that Aldar is successfully executing a balanced strategy across master development, rental income, and infrastructure services. With strong demand, robust balance sheet, disciplined launch schedule, and an ever-expanding pipeline, Aldar is well set to shape the future of UAE real estate growth. 📈
While short-term headwinds like rising taxes and potential oversupply remain, Aldar’s diversified platform and investor confidence mean that this is a developing story worth watching through H2 2025 and well into 2026.
If you’d like a deeper dive into Aldar’s residential trends, investor portfolio mix, or broader MENA real estate dynamics, just say the word!
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