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Khaleej Times
20-05-2025
- Business
- Khaleej Times
Emirates airline aims to create jobs, build wealth for Dubai, says top official
Dubai-based Emirates' objective is to build an airline and make money, create jobs, and wealth for the city, said Boutros Boutros, executive vice president, corporate communications, marketing and brand at Emirates Group. While speaking during the TRIBE – The CMO Connect 2025 event hosted by Khaleej Times, Boutros said Dubai's flagship carrier is run like a private entity, rather than a government firm. "We don't have a board of directors and shareholders who come every three months, and we have to produce enough figures to keep our jobs. This is a strength for us. This is a strength because our motive is not only to make money. We have to be profitable, but more than profitable, to build an airline; it is to create jobs and wealth for the city. Stay up to date with the latest news. Follow KT on WhatsApp Channels. "This mentality doesn't exist in many other companies, because we are a unique company in terms of ownership. It's run like a private company, not run as a government," Boutros said during a fireside chat on "Marketing Beyond Borders: How a Homegrown Brand Became Truly Global." He stressed that Emirates' success should be attributed to teamwork and the environment it provides to its employees. "Emirates is a unique airline for a unique city. You cannot say it's a Dubai company. It's a global company. We cater for everybody." Key highlights of TRIBE – The CMO Connect 2025 were the exclusive announcement of the GCC's Most Influential Marketing Leaders, recognising excellence, innovation, and leadership in the field. The summit also featured a networking lunch, providing opportunities for attendees to foster strategic partnerships and engage with top marketing visionaries. Loan repaid Last week, Emirates said its 2024-25 revenues increased by 6 per cent to Dh127.9 billion ($34.9 billion). The world's largest international carrier hit a new record profit after tax of Dh19.1 billion, outstripping last year's Dh17.2 billion ($4.7 billion). This is the best performance in the airline's history, and in the airline industry for the reporting year 2024-25. "We have been the most profitable airline for the last three years. After the pandemic, we repaid the loans to the government. We were running a tight, good operation (during Covid-19). To be honest, this would not have happened if we were in another country. A lot of people ask why the Emirates is so successful. It is because we are in Dubai. Of course, this is one of the major reasons, and a huge part of Dubai's and the UAE's growth story," said Boutros. Dubai's flagship carrier obtained billions of dollars in loans from the government due to the coronavirus pandemic as the aviation industry came to a halt due to the pandemic. Going from good to better An industry veteran, Boutros relocated from the UK in 1991 to join Emirates. 'We had just seven aircraft and 11 destinations. It was a small airline; nobody took us seriously. I was fortunate enough to have the courage to move from the UK to join the Emirates. I came to Dubai for the first time in 1989, and I could see this place only going from good to better. I strongly believed in Emirates and the vision of Dubai,' he said during a fireside chat with Michal Divon, chief client officer, Khaleej Times. He added that Emirates' strategy is parallel to Dubai's strategy. 'From day one, Emirates management knew that they needed to provide the experience. We, as an airline, carry people from place A to B. But then every other end line does the same. But we are different and that's why we are successful.' Citing an example, he said in 1992, Emirates was the first airline in the world to introduce in-flight entertainment. Smart spending Butrous dismissed the general impression that Emirates spends a huge amount of money on marketing. Instead, he stressed that the airline spends much less than the market rate on marketing, 'In reality, our spending is less than 3 per cent of our total revenue. In our industry, you need to spend between 3 to 7 per cent of your total revenue on marketing. Sometimes I'm challenged internally by our financial department, that I take 3 per cent. This year, my budget is 2.4 per cent. So you have to be smart about how to spend it. Because if you are doing something right, people think we have so much money to spend. In reality, we spend much less. But it seems it's working,' said the executive vice president of corporate communications, marketing and brand at Emirates Group. Contrary to current times when sports and other companies willingly embrace big brands on their shirts, he noted that it was quite a challenge for people to convince to embrace aviation brands on the players' shirts.
Al Etihad
09-04-2025
- Business
- Al Etihad
UAE banks investments reach Dh742.9 billion by end of January
9 Apr 2025 21:44 ABU DHABI (WAM)The total investments of banks operating in the UAE rose by 1 percent month-on-month, increasing by Dh7.3 billion in January to reach Dh742.9 billion by the end of the month, marking a 16.1 percent year-on-year growth compared to January to banking indicators released today by the Central Bank of the UAE, bank investments in securities representing debt on others grew to Dh332.3 billion at the end of January, reflecting a 26.1 percent annual bonds rose by 7.9 percent year-on-year but declined by 1.1 percent month-on-month, reaching Dh335.7 investments in equities grew by 19.4 percent year-on-year, despite a 1.5 percent monthly decline, to settle at Dh19.1 billion. Other investments increased by 13.2 percent year-on-year and 2.2 percent month-on-month, reaching Dh55.8 billion at the end of investment performance coincided with a 9.5 percent annual growth in total credit, which reached Dh2.186 trillion, while total deposits grew by 11.8 percent annually to exceed Dh2.84 assets increased by 11 percent year-on-year and by 0.1 percent month-on-month to surpass Dh4.562 trillion by the end of from the banking operations released today also showed that the value of transfers processed through the UAE Funds Transfer System (UAEFTS) exceeded Dh1.786 trillion in January, reflecting a growth of more than 18 percent. This included Dh1.109 trillion in interbank transfers and approximately Dh677.64 billion in customer value of cheques cleared via image-based processing reached Dh118.48 billion in January, involving 1.956 million cheques. Cash withdrawals from the Central Bank amounted to Dh19.929 billion in January, while deposits totalled around Dh15.217 billion.
Khaleej Times
27-03-2025
- Business
- Khaleej Times
Emaar Development approves Dh2.7 billion dividend for 2024
Emaar Development on Thursday announced that its shareholders have approved the board of directors' proposal to distribute a dividend of Dh2.7 billion ($740 million), representing 68 per cent of the share capital. During the company's annual general meetings, shareholders approved the board's report on the company's activities and financial position, as well as the auditor's report, were also approved. Emaar Development reported property sales of Dh65.4 billion in 2024, reflecting a 75 per cent increase compared to the previous year. The company's revenue backlog reached Dh90.9 billion, supporting future revenue growth. Total revenue for the year amounted to Dh19.1 billion, up 61 per cent from 2023, while net profit before tax increased by 20 per cent to Dh10.2 billion. Throughout 2024, Emaar Development launched 62 projects across its master plans, further strengthening its presence in the market and reinforcing its commitment to shaping high-quality communities. The company also acquired 141 million square feet of prime development land, with a total development value of Dh96 billion. Mohamed Alabbar, founder of Emaar, commented: 'Our 2024 results are a testament to our focus on excellence, innovation, and customer satisfaction. Every project we launch is about more than just real estate—it's about building communities that enhance the lives of residents and contribute to Dubai's global appeal.' He added: 'By embracing technology and sustainability, we aim to redefine modern living while ensuring lasting value for our customers and stakeholders. Looking ahead to 2025, we will further strengthen our commitment to introducing new developments that align with our vision for sustainable urban growth, while supporting economic growth and nurturing the next generation of talent.'
Khaleej Times
17-03-2025
- Business
- Khaleej Times
Emaar Properties upgraded to ‘BBB+' on strong business performance; outlook stable
S&P Global on Monday raised the ratings of Emaar Properties, Dubai's largest listed developer, to 'BBB+', with a stable outlook. 'The upgrade reflects the significant growth Emaar experienced in Dubai residential real estate, along with the steady performance of malls, hospitality, and entertainment that lends resilience to the cyclical development business,' the ratings agency said in a report. Emaar's revenue backlog hit a record-high Dh110 billion on Dec. 31, 2024, spurred by the solid performance of its domestic residential real estate development. Emaar's credit ratios remained strong as revenue grew 33 per cent and earnings before interest, taxes, depreciation and amortisation (Ebitda) 12 per cent in 2024. The company was in a net cash position with no leverage, with Dh19.1 billion of discretionary cash flow (DCF). 'We expect strong operating cash flow in 2025-2026, supported by healthy demand and a strong balance sheet despite growing capital expenditure (capex), dividend payments, and the cyclical nature of real estate development in Dubai, which is experiencing peak cycle conditions,' the report, co-authored by analysts Sapna Jagtiani, Fares Shweiky and Pierre Gautier, said. S&P expects strong revenue growth to continue in 2025-2026 with adjusted Ebitda margins of 42 per cent-45 per cent, which will support Emaar's financial metrics despite rising capex and dividends. The ratings agency noted that Emaar benefits from positive real estate trends in Dubai, where it is by far the largest developer. It successfully capitalises on its solid reputation, having delivered over 74,400 units over its history. With 42,003 units under development (including in joint ventures) which are already 93 per cent presold, the company is expected sustain its strong market position and capture the bulk of interest from international buyers in Dubai's real estate thanks to its well-established brand and good asset quality, sustaining better pricing power than other players. The high level of backlog provides increasing visibility of revenue recognition for the next two years. 'We understand prominent and well-established developers can collect full cash during the construction phase (that is, no post-handover payments) and on handover for recent projects. Cash collection now happens faster, with 70 per cent-80 per cent collected during the construction phase and the rest on handover. We think this allows developers to de-risk construction much faster and alleviates working capital pressure, reducing funding requirements. Such features should structurally support the group's resilience during future down cycles and played an important role in our decision to upgrade, as we acknowledge we are now in a supportive stage of the real-estate cycle in Dubai,' the analysts wrote. Dubai residential real estate market has experienced strong growth, led by continued demand from residents and international investors. S&P expects Dubai's economy to remain supportive, with GDP growth staying near 3 per cent on average over 2024-2027. The city's population — not including workers commuting to Dubai — increased to 3.7 million at year-end 2023, according to the Dubai Statistics Centre. S&P expects property prices will remain stable over the next 18 months, then possibly normalise due to increasing supply. 'We think Dubai remains an attractive business and residential destination, given that it offers low taxation despite the introduction of a 9 per cent corporate tax starting June 2023, has adopted a series of more liberal social laws, and enjoys the reputation as a safe haven in the region,' the report said.
