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Emaar Properties has announced a monumental expansion of Dubai Mall, which will include 240 new luxury stores and food and beverage outlets. Image courtesy: Emaar Malls
Dubai-listed Emaar Properties is expected to incur capital spending exceeding 14 billion UAE dirhams ($3.81 billion) for Creek Tower and Creek Mall developments, S&P Global Ratings said in a rating report.
The developer sits on the largest land bank among rated private developers in the UAE, holding more than 405 million square feet ( sq. ft.) in the UAE as of December 2024.
“Land procurement is one of the key investment areas for the company,” the rating agency said.
Emaar plans to spend about 65 billion UAE dirhams ($18 billion) over the next five years after four years of limited investments.
The company intends to replenish its land by spending over AED 30 billion ($8.2 billion) in the next five years, which will help sustain its leading market share and competitive edge, S&P said.
After years of maintenance capex at Emaar Malls, the rating agency anticipates to resume higher spending, notably on Dubai Mall’s expansion-- whose cost is an announced AED1.5 billion - considering close to full occupancy at 99 percent as of the end of 2024.
Emaar also intends to invest in its residential rental portfolio to increase the share of more stable revenue.
“We estimate that total capital spending could amount to AED7 billion-AED11 billion per year in 2025-2026, excluding land acquisitions,” S&P said.
It has rated Emaar Properties to BBB+ on the back of strong business performance.
(Writing by P Deol; Editing by Anoop Menon)
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