Nagham Hassan, Market Analyst at etoro
Dubai, United Arab Emirates – November, 2026: Emaar Properties reported a recovery in third-quarter profits following a weaker second quarter, supported by improved revenue and continued growth in its property development business. However, slower new property sales and a decline in its revenue backlog remain key factors that could influence the company’s earnings growth in the coming quarters.
According to Nagham Hassan, Market Analyst at etoro, Emaar’s latest results reflect a business that continues to deliver solid profits, although the pace of new sales will be increasingly important in determining its future performance.
Revenue and profit both improved compared with the second quarter, with property development remaining the main driver of growth. Emaar’s recurring businesses, including shopping malls, hotels and leasing operations, continued to provide a stable contribution to earnings, broadly in line with their performance during the first half of the year.
However, the hospitality business remained under pressure, as lower international visitor numbers kept hotel occupancy levels well below those recorded during the same period last year.
One of the most important developments in Emaar’s results was the relationship between new property sales and revenue recognised from previously sold units.
Although property sales recovered in the third quarter following a weaker second quarter, total sales for the first nine months of the year remained significantly below the previous year’s levels.
At the same time, Emaar’s revenue backlog declined from the end of the first half, as revenue recognised from earlier property sales exceeded the value of new sales during the quarter.
This marked the first decline in the backlog following an extended period of growth, suggesting that new sales have yet to return to their previous pace.
While Emaar continues to benefit from a substantial pipeline of previously sold developments in the UAE, the decline in its backlog will be an important indicator for investors to monitor in the coming quarters.
On shareholder returns, Emaar’s reiterated special dividend of AED 0.50 per share represents a positive signal, supported by the company’s earnings performance.
Another important development is Emaar’s proposed acquisition of the remaining shares in Emaar Development that it does not already own, subject to approval.
If completed, the transaction would give Emaar Properties full ownership of its principal UAE property development business, allowing it to retain the entire share of Emaar Development’s profits attributable to shareholders.
The move would also eliminate minority interests in Emaar Development, simplify the group’s ownership structure and provide greater flexibility in allocating cash generated by its development operations.
From a strategic perspective, full ownership could strengthen Emaar Properties’ control over capital allocation, including decisions related to future developments, reinvestment and shareholder distributions.
Overall, Emaar’s operating performance and profit margins remained resilient, while the third-quarter recovery offset much of the decline recorded in the previous quarter.
However, the sustainability of future earnings growth will depend increasingly on whether new property sales continue to improve and whether the revenue backlog stabilises.
Until clearer signs of recovery emerge in these areas, Emaar could face slower earnings growth despite maintaining strong absolute profitability and shareholder returns.
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