Abu Dhabi-listed Aldar Properties' development backlog has reached a record AED54.6bn ($14.9bn), the company said when reporting its annual results for 2024.

In a statement, Aldar said the backlog ensures revenue recognition over the next two to three years. The UAE backlog stands at AED45.9bn. The company also expanded its international footprint, with notable activity in Egypt through Sodic's launch of Ogami, and in the UK with London Square's four new developments and acquisition of 13 sites.

Aldar launched 12 new projects in 2024, with four major developments unveiled in the fourth quarter: Mamsha Palm, Faya Al-Saadiyat, Mandarin Oriental Residences and Mamsha Gardens.

According to regional projects tracker MEED Projects, Aldar awarded $3.8bn of construction contracts in the UAE during 2024, making it one of the most active developers in the country. 

For its financial performance in 2024, Aldar reported a 47% increase in net profit, reaching AED6.5bn ($1.77bn). Aldar attributed the increase to robust cross-platform growth and a significant rise in development sales, which hit a record AED33.6bn, marking a 20% year-on-year increase.

Aldar’s results also reflect Abu Dhabi’s buoyant property market in 2024.

The Abu Dhabi Real Estate Centre (Adrec), which was launched by the Department of Municipalities & Transport in November 2023, recently said there was a 24.2% increase in real estate transactions in Abu Dhabi in 2024 compared to 2023. There were 28,249 transactions in 2024, representing a 10.45% surge in total value, reaching AED96.2bn.

Aldar experienced strong demand from international buyers, with sales to overseas and expatriate residents in the UAE climbing to AED22.2bn, accounting for 78% of total sales, up from 66% in 2023.

Strategic partnerships have also been a key focus for Aldar. This is highlighted by its collaboration with private equity company Mubadala, resulting in three joint ventures involving assets at Masdar City, land at Al-Falah and an island near Saadiyat Island. Aldar's develop-to-hold pipeline has grown to AED13.3bn, reflecting its active capital deployment strategy.

Aldar Investment has also shown significant growth, with adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) rising 20% year-on-year to AED2.7bn and assets under management increasing to AED42bn. The company's financial resilience is underscored by a robust capital structure, including a new AED9bn revolving credit facility and a $1bn hybrid notes issuance.

According to GlobalData, government initiatives play a key role in fostering the successful performance of the real estate sector, with various strategic reforms and investments aimed at enhancing the economic environment and attracting foreign investment.

These reforms facilitate the growth of new industries and support the development of a knowledge-based economy, which is essential for the long-term sustainability of the real estate sector. Such measures include broad-based reforms to resident and tourist visas, which directly support non-oil sectors and boost demand for goods and services as the population grows.

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Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes: