Abu Dhabi’s leading developer, Aldar Properties (ALDAR.AD), has unveiled ambitious plans to expedite development activities across its key markets, expressing optimism particularly about opportunities in Egypt.
This announcement follows a significant surge in net profit for the first quarter, the company reported on Monday.
Net profit soared by 88% compared to the previous year, reaching 1.57 billion UAE dirhams ($427.5 million), surpassing analyst predictions of 1.03 billion dirhams, according to LSEG data.
Faisal Falaknaz, Chief Financial and Sustainability Officer, attributed this growth to “robust macroeconomic fundamentals and consumer confidence in the UAE.”
He further elaborated during a post-earnings call with reporters, stating, “Looking ahead, we plan to accelerate development activity in Abu Dhabi, Dubai, Ras al-Khaimah, Egypt, and the UK this year to drive further scale.”
Aldar Properties holds a 25% stake owned by sovereign wealth fund Mubadala and a 26% stake owned by International Holding Company, part of the business conglomerate under the oversight of Sheikh Tahnoon bin Zayed al-Nahyan, the UAE’s national security adviser and brother to the president.
In 2021, the company acquired approximately 85.5% of shares in The Sixth of October for Development and Investment (SODIC) (OCDI.CA), along with Abu Dhabi fund ADQ, as part of its strategy to expand its real estate portfolio in Egypt.
Falaknaz addressed inquiries regarding the business climate in Egypt amid the recent devaluation of the local currency, highlighting the firm’s robust backlog in the country, exceeding 3.5 billion dirhams, and its continued profitability.
He emphasized, “We remain extremely optimistic for the long-term prospects of that market,” citing recent developments such as ADQ’s investment in the Ras Al-Hikma development.
Aldar reported a total revenue of 5.6 billion dirhams for the quarter, marking an 83% year-on-year increase, propelled by growth across its core businesses, including development segments.
The company had previously announced plans to invest 5 billion dirhams in constructing new office, retail, and hospitality facilities in Abu Dhabi by 2027, coinciding with the expansion of the capital’s financial district, which is set to increase tenfold by incorporating al-Reem Island.
Abu Dhabi’s emergence as a financial hub is underscored by its hosting of three sovereign wealth funds and its growing appeal to hedge funds, family offices, venture capital firms, and crypto traders.