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Zawya
4 hours ago
- Business
- Zawya
Dubai's Emaar has sufficient liquidity to cover $1.3bln debt maturities by 2026: Moody's
DEBT Solid demand expected over next 12 months to balance expected residential property deliveries PHOTO Dubai-listed Emaar Properties has sufficient liquidity to cover debt maturities of 4.8 billion UAE dirhams ($1.3 billion) through June 2026, according to a report by Moody's Ratings. The company's liquidity is excellent, with a cash balance of 25.4 billion UAE dirhams ($7 billion) as of 31 March 2025 (excluding restricted cash in escrow accounts) and undrawn revolving credit facilities of AED 7.4 billion ($ 2 billion), the rating agency said. However, a material portion of Emaar's cash is restricted as a regulatory requirement to deposit customer installments linked to development projects in escrow accounts (AED 32.9 billion out of AED 58.3 billion as of March 2025). Emaar's cash profit is released from these accounts as contractors get paid through the escrow accounts and projects get delivered, the report said. Moody's expects Dubai's real estate market to remain stable over the next 12 to 18 months, following a period of significant growth. Average residential property prices rose by approximately 78 percent, driven by robust housing demand between September 2020 and April 2025. The surge has been supported by a steady influx of expatriates contributing to population growth, positive investor and high-net-worth individual sentiment and strong local consumption amid improved economic conditions. "We expect solid demand over the next 12 months to balance expected residential property deliveries, resulting in a more normalised average residential property price growth rate," Moody's said. The rating agency has upgraded Emaar's long-term issuer ratings to Baa1 from Baa2. It has also upgraded Emaar Sukuk Limited's backed senior unsecured bonds to Baa1 from Baa2 and backed senior unsecured medium-term note programme to (P)Baa1 from (P)Baa2. The outlook remains stable for both entities, the report said. (Writing by P Deol; Editing by Anoop Menon) ( Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa. Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
Zawya
3 days ago
- Business
- Zawya
Mideast Stocks: UAE markets fall but Dubai index ends May at multi-year high
Dubai's main share index ended May at its highest level since July 2008, even as global trade uncertainty and concern over an economic slowdown weighed on sentiment in Friday's session. Oil prices - a catalyst for Gulf markets - were flat on Friday and heading for a second consecutive weekly loss, as investors weigh a potentially larger OPEC+ output hike for July, and uncertainty spreads around U.S. tariff policy after the latest courtroom twist. United Arab Emirates' markets settled lower on Friday, with Dubai's index retreating 0.22% and Abu Dhabi's benchmark index ending 0.62% lower, although the market ended the month at its highest level since March 2024. Abu Dhabi's index also recorded a seventh consecutive weekly session of gains. Ratings agency Fitch warned on Thursday that Dubai real estate prices are likely to face a double-digit fall in the second half of the year and in 2026. The Gulf's business and tourism hub, Dubai has experienced a post-pandemic property boom, fuelled by foreign investment and government-led residency reforms, which have helped send real estate prices soaring. Real estate development company Emaar Properties fell 1.13% on Friday. Healthcare and education investment company Amanat Holding was the biggest loser on the index, down 2.78%. All other Gulf markets are closed on Friday. ABU DHABI down 0.62% to 9,685.1 DUBAI down 0.22% to 5,480.51
