EMAAR Integrated Report 2023 - PDF

Emaar Properties PJSC (DFM: EMAAR) is a global property developer and provider of premium residential, commercial, and retail spaces, with a significant presence in the Middle East, North Africa, and Asia. As pioneers in developing master-planned communities and bespoke lifestyle destinations in th...

Emaar Properties PJSC (DFM: EMAAR) is a global property developer and provider of premium residential, commercial, and retail spaces, with a significant presence in the Middle East, North Africa, and Asia. As pioneers in developing master-planned communities and bespoke lifestyle destinations in the UAE, we continue to shape new lifestyles and experiences across the world. 2023 Highlights Contents Financial Segment-wise business review - Page 24 Introduction ESG About the Report 02 Environment 46 AED 26.7 Bn 7%  AED 17.3 Bn 67%  Chairman’s Message 04 Social 66 Revenue (US$ 7.3 Bn) EBITDA (US$ 4.7 Bn) Year in Review 06 Governance 84 Managing Director’s Statement 10 AED 71.8 Bn 35%  AED 11.6 Bn 70%  Revenue backlog (US$ 19.5 Bn) Net profit* (US$ 3.2 Bn) Annexures About Emaar Properties List of Abbreviations and Units 98 At a Glance 16 GRI Content Index 100 Operational Diversified Portfolio of Assets 18 Business Model 22 Management Discussion Sale of Namshi to Noon at a value of Address Jabal Omar Makkah unveiled and Analysis 104 AED 1.2 billion (US$ 335.2 Mn) with ~1,500 keys Business Review Master-planned development at Launch of Dubai Mall Chinatown – UAE Development 26 Corporate Governance Report 124 The Oasis – a luxury lifestyle destination the latest addition to Dubai Mall Emaar International 28 Emaar Malls 30 Emaar Hospitality, Leisure, Consolidated Financial Statements Commercial Leasing, and Entertainment 32 ESG ESG sections - Page 46 Directors’ Report 162 Independent Auditors’ Report 164 11.74 MWp 21%  Zero BB  Business Strategy Consolidated Income Statement 168 Solar power capacity (UAE) Fatalities across the Group ESG rating by MSCI Strategic Priorities 36 Consolidated Statement of Comprehensive Income 169 Stakeholder Engagement and Materiality 38 Consolidated Statement of Financial Position 170 ESG Strategy 42 Consolidated Statement of Changes in Equity 171 LEED Platinum O+M 117 Mn hours 92.6% Contribution to the UN SDGs 44 Consolidated Statement of Cash Flows 172 Certification achieved for Burj Khalifa Total safe manhours worked Customer satisfaction score Notes to the Consolidated Financial Statements 173  y-o-y growth/Improvement * Attributable to Owners  A B O U T TH E R E P O RT The Integrated Annual Report 2023 provides a comprehensive view of our strategic, financial, Reporting Period How to Read this Report and operational performance, along with an January 2023 December 2023 Jump marks are linked to The number inside the icon represents the 01 31 00 00 00 overview of our Environmental, Social, and content within the document relevant material topics in order of priority. Governance (ESG) performance. Scope of the Report Integrated Thinking Scope and Boundary We are driven by This Report extends beyond financial reporting and includes Purpose Vision non-financial performance, opportunities, risks, and outcomes attributable to or associated with our key stakeholders, which Our purpose is to be the most admired real estate group To redefine engineering excellence have a significant influence on our ability to create value. globally, that transforms the lives of its occupiers by delivering spaces that engage, excite, and enrich, and Mission Financial: All reported financial and operational numbers thus deliver sustainable long-term income and To create futuristic residential, retail, entertainment & in the strategic report section are on a consolidated basis, wealth creation leisure assets transforming the lifestyles of people globally unless specified otherwise. Enabled by strategic priorities Page 36 Non-Financial: All reported non-financial numbers in the strategic report section are for operations in the UAE, unless 01 Maintain leadership position in our markets 03 Focus on maximising shareholder returns specified otherwise. Key business units covered include 02 Focus on execution and cash flow generation UAE Development, Emaar Malls, Emaar Hospitality, Leisure, Commercial Leasing, and Entertainment, with supplementary information provided for select Delivering value through our ESG Strategy Page 42 international business units. Sustainability Purpose: Our purpose is to create and sustain spaces and landmarks with a commitment to sustainability at the forefront, enhancing community wellbeing, safeguarding the environment and creating long-term value for all Reporting Framework and Standards our stakeholders This Report has been prepared in accordance with the framework published by the International With a consistent eye on Financial Reporting Standards (IFRS) Foundation. This Report has also been made with reference to the Opportunities Risks Page 92 following standards and frameworks: Navigating challenges, embracing change, Proactively mitigating threats, adapting our strategies, ʶ GRI 2021 Standards and cultivating business resilience and implementing safeguards ʶ United Nations Sustainable Development Goals (UN SDGs) Supported by governance Page 84 ʶ Dubai Financial Market’s (DFM) Guide to ESG Reporting A foundation of expertise, prudence and cooperation and creating a legacy of success and unity. Restatements of Information Creating positive impact This Report contains restatements of some non-financial information that was disclosed in the previous year’s report. Environment Page 46 Social Page 66 Please refer to the GRI content index for more information Focussing on responsible practices, conservation, Cultivating empathy, fostering connection, on the same. and mitigating our environmental impact and building a shared ecosystem of progress Materiality Page 38 Forward-looking Statement For our stakeholders In 2023, we updated our materiality assessment, refreshing The Report includes forward-looking information, such as ‘future- our key material topics in alignment with current oriented financial information’ and ‘financial outlook,’ as defined by Investors and Shareholders Suppliers and Contractors stakeholder expectations and the evolving business and applicable securities laws. Except for historical facts, the content may Financial Institutions Industry Associates sustainability landscape. This process allowed us to identify contain forward-looking statements intended to provide insight into management’s beliefs. While based on reasonable assumptions, actual Customers Government and Regulators and prioritise key topics that significantly impact our results may differ. The Company undertakes no obligation to update business and are of utmost importance to our stakeholders. People NGO, Advocacy Groups, and Communities forward-looking statements unless required by securities laws. Readers are cautioned not to place undue reliance on such statements. |2| EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC |3|  C H A I R M A N ' S M E S S AG E Translating Vision to Action Dear Shareholders, It is only fitting to reflect on a year that was transformative, driven by robust performance in non-oil sectors, notably In line with this commitment, we established an ESG both globally and particularly in the UAE. As we navigated real estate and tourism. The year 2023 marked a milestone Steering Committee to embed ESG considerations within through a dynamic global environment, our country for the UAE’s residential real estate market, achieving the our businesses and ensure an appropriate level of oversight continued to remain a bright spot. largest number of transactions ever recorded. on key ESG topics. The most positive outcome was the renewed focus on At Emaar, we successfully delivered on our promise climate change and sustainable development. Nowhere of industry-beating growth in 2023, showcasing our The Path Ahead was this focus sharper than in Dubai, which was recently operational excellence and sustained expansion across our I am greatly excited about the momentum we are building. the stage for the United Nations Climate Change diverse portfolio. During the year, we achieved revenues We have a clear purpose and an ambitious growth strategy, Conference COP28. of AED 26.7 billion, accompanied by a notable 70% and I am convinced that we have the best people in the increase in net profit attributable to owners compared industry to help us translate our vision into action. Evolving into a genuine ‘live, work, play’ metropolis, Dubai to the preceding year. This sustained performance was now stands shoulder to shoulder in stature with all major underpinned by growth in tourism, increased retail sales, For us, 2024 will be all about making further progress global hubs. An impetus for its phenomenal growth has been and heightened demand in the real estate sector. against our business strategy, advancing our sustainability provided by its sustained focus on economic diversification, goals, and delivering on our key projects. We will continue public safety, social harmony, and sustainability. Amid new and emerging market trends such as the demand to empower and unleash the potential of our people by for smart homes, flexible spaces, sustainable buildings, building up their competencies and preparing them for the and diversified consumer segments, we met the demand workplace of the future. One of the key focus areas for the Being Part of a Global Mission with our state-of-the-art, well-equipped and multifaceted upcoming year will be generating value for shareholders. Building on the legacy of the UAE’s Founding Father, the spaces for work, living and leisure. From luxury homes and late Sheikh Zayed bin Sultan Al Nahyan, COP28 succeeded exclusive hotels to shopping malls and leisure attractions, As the UAE economy progresses to meet its ‘We the UAE Now is the time for all in uniting the world around a landmark response to the we continued to shape the destinations and lifestyles of 2031’ vision and becomes one of the most diversified Global Stocktake, named ‘The UAE Consensus’, that the future. and admired countries in the world, we aim to continue of us in the business delivered on inclusivity, ambition, and change. our contributions towards shaping its development and Our diversified portfolio of assets, with the potential for community to work Now is the time for all of us in the business community a strong upside in the development business, supported enhancing the quality of life for its residents. At the same time, we wish to leave our deep imprint in the markets together as a grand to work together as a grand coalition to translate the UAE Consensus into action. This won’t be easy, but the severity by our steadily growing recurring revenue businesses, will enable us to retain and build on our market leadership. within which we operate, where our investments will support the creation of resilient and prosperous communities, coalition to translate of the situation demands that we work together. Additionally, substantial value remains to be unlocked in UAE and international operations, boasting an extensive contributing to economic development. I am confident that we will maintain our strategic position to help construct the the UAE Consensus At Emaar, we are embarking on a journey to define a comprehensive strategy that underscores our commitment land bank of ~1.7 billion square feet. cities of the future–intelligent, sustainable, and inclusive. into action. This won’t to transforming our business practices for the sustainable Let me end by expressing my deep gratitude towards our future of our planet and the betterment of all our Thinking Beyond Skylines be easy, but the severity stakeholders. Each member of our team plays a vital role We have always been conscious of our responsibility towards shareholders, customers, business associates, and partners for your unwavering support. On behalf of the Board and of the situation demands in this pursuit, ensuring that our efforts are directed towards achieving significant and positive outcomes in the environment and society and have, over the years, taken various initiatives to embed ESG in our operations. everyone at Emaar, I thank you for your continued support and cooperation as we work together to build a company that we work together. key focus areas. During the year, we updated our materiality assessment for the future. to ensure the relevance of our material topics to our A Year of Strong Performance stakeholders. We recognise the importance placed on Despite multiple challenges facing the global economy, ESG issues by our stakeholders and we aim to integrate the UAE’s economy has demonstrated remarkable resilience, sustainability into all aspects of our business. Jamal Bin Theniyah growing by 3.1% in 2023. This growth has been primarily Chairman Jamal Bin Theniyah Chairman |4| EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC |5|  YEAR IN REVIEW Celebrating Joyful Spaces We specialise in creating and managing highly-amenitised luxury properties in every major market, where we give residents and users an unparalleled taste of comfort and the good life. Our diversified portfolio across the commercial, residential, retail, hospitality and leisure segments has enabled us to cater to diverse market needs, trigger new aspirations, and grow our business. The year saw us delight our customers and business clients once again with our unrivalled execution ability. QUARTER 1 QUARTER 2 A Significant RoI Uptick Promise of a More Refined Lifestyle Namshi’s Strategic Sale Paves the Way for Growth Emaar’s Ratings Affirmed with Stable Outlook Launch of New Projects Launch of New Projects We completed the strategic sale of Namshi, our online Major rating agencies, including S&P, Moody’s and Fitch, fashion retail gem, to Noon for AED 1.2 billion Arabian Ranches III have reaffirmed our financial reliability with upgraded credit Arabian Ranches III (US$ 335.2 million), generating a surplus of Anya | Anya 2 ratings (BBB, Baa2, and BBB, respectively) with a stable May AED 127 million (US$ 34 million) over Emaar Mall’s total outlook. These endorsements signify our solid financial investment over the years. This aligns with our strategic Dubai Creek Harbour performance and improved market position. Emaar Beachfront focus on core assets to enhance Return on Investment (RoI). Savanna | Cedar Seapoint | Bayview Tower 1&2 The Valley New Premium Offerings The Valley Elora Rivana Unveiled a new master-planned development in Dubai Dubai Hills Estate The Oasis, a luxury lifestyle definition that promises refined Dubai Hills Estate Elvira waterside living experiences, allows residents to make the Golf Grand most of the city’s sun-filled days. Rashid Yachts & Marina Sunridge Our newest hotel Address Jabal Omar Makkah features ~1,500 keys Emaar South became operational. Fairway Villas 2 Joint Venture |6| EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC |7|  YEAR IN REVIEW In the second half of the year, we had a two-fold focus: New business launches and sustainability. With sustained growth in property sales and a late surge in tourism, driven by events such as COP 28, we ended the year with a strong financial and operational performance. QUARTER 3 QUARTER 4 A New Cultural Experience Our ESG Progress Cultural Fusion: Dubai Mall’s Updated our Materiality Assessment Page 38 Chinatown Grand Opening Launch of New Projects Launch of New Projects We updated our materiality assessment to capture evolving In September 2023, Dubai Mall unveiled its latest addition - The Oasis trends in the business and sustainability landscape. The Valley Dubai Mall Chinatown - an immersive space synergising Palmiera We streamlined our material topics and identified 24 Alana shopping, cultural experience, and an authentic atmosphere. material topics, which will form the basis of our ESG strategy. The Valley Ras Al Kheimah At Chinatown, visitors can explore a souvenir market, Nima Embedding ESG within our Address Marjan offering a curated selection of Chinese handicrafts, textiles, Dubai Hills Estate Governance Framework Page 86 Dubai Hills Estate and artefacts, perfect for those looking to bring a piece of China’s heritage home. This extension not only enhances the Greenside Parkside Views | Club Drive | Park Gate We established an ESG Steering Committee to embed ESG mall’s appeal but also strengthens economic ties between the considerations within our existing corporate governance Rashid Yachts & Marina Rashid Yachts & Marina UAE and China, adding to our commitment to expanding framework and ensure an appropriate level of oversight of Clearpoint Avonlea | Bayline and refining our retail and leisure offerings. ESG topics. We also appointed a dedicated ESG head to develop and drive our ESG strategy. Debuted at WETEX 2023 and Dubai Solar Show We marked our inaugural presence at the Water, Energy and Technology and Environment Exhibition (WETEX) 2023, introducing the Emaar Sustainability Hub, an initiative designed to drive sustainability discussions, and showcase and explore sustainable technologies and solutions in urban development. |8| EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC |9|  M A N AG I N G D I R EC TO R ’ S S TATE M E NT Our Journey of Growth and Excellence Dear Shareholders, As we reflect on the year 2023, Emaar has demonstrated overall liquidity of the banking system, thus contributing Emaar achieved many milestones in 2023, and following unwavering dedication to the growth of the UAE’s significantly to the economic prosperity of our nation. a prosperous year, our achievements are indeed gratifying. economy and the enrichment of our society. Our financial contributions across the board have been both significant The footfall in our malls was an impressive 190 million, By year-end, we had successfully sold around 150,000 and impactful. showcasing our retail spaces’ prominence and appeal. units across the world, expanded our real estate portfolio, Notably, our flagship asset, Dubai Mall, welcomed a elevated our hospitality offerings, and forged new paths Our investment in our people, a cornerstone of our success, record 105 million visitors, an increase of over 19% in technology and digital innovation. However, what is of was evident with over AED 1.2 billion directed towards our compared to the previous year, making the mall the most significance is the path that lies ahead. We find ourselves in employees’ salaries and related costs. visited destination globally in 2023. Emaar’s hospitality an era of change, transitioning towards a more sustainable, sector proudly served ~1.9 million guests generating connected, and efficient future. We maintained the vitality of local services by disbursing revenues exceeding AED 2.8 billion (including managed AED 910+ million to utility providers and AED 35+ million hotels). This reflects the strength of our industry and our We recognise that the future of real estate is deeply to telecommunication services, ensuring our operations’ commitment to excellence in service. intertwined with technological advancements that seamless connectivity and sustainability. enhance operational efficiencies and enrich our customers’ Furthermore, at Emaar, we firmly believe that success isn’t living experiences. Our investment in digital platforms We have successfully completed the payment of solely about financial gains; it’s also about the positive and breakthrough technologies is a testament to our AED 6+ billion for the acquisition of land parcels from impact we make on society. Over the past year, we have commitment to leading the way. Government and quasi-government institutions in the UAE. donated AED 54 million aimed at empowering women and This is a significant milestone in our strategic expansion youth, providing social housing for the underprivileged, As we continue our journey, our strategic initiatives and plan and demonstrates our commitment to the development environmental conservation, and promoting cultural plans are in lockstep with Dubai and its ambitious D33 and prosperity of the nation. Through these land purchases, diversity and inclusion. Moreover, we continue to remain economic agenda. We are not just participants in this we aim to create value for our shareholders, customers, and partnered with our customers by maintaining the transformative era but key contributors, fully committed partners by developing innovative and sustainable projects communities we have developed, where we have channelled As we step into a future to Dubai’s vision of becoming a preeminent global centre for economic, cultural, and technological progress. In that cater to the diverse needs and preferences of the market. community work of AED 1.3+ billion. We are proud of our shaped by Dubai’s D33 line with Dubai’s vision for a greener future, our projects embody our dedication to environmental stewardship, Our engagements with contractors and suppliers reached achievements and contributions, but we also recognise that there is more work to be done. We will continue to uphold a remarkable AED 10.3+ billion, reflecting our role in Economic Agenda, Emaar reflecting our resolve to contribute to a sustainable future. propelling the construction industry forward and supporting our corporate ethos of giving back to the community, and to align our business goals with our social responsibility. is poised to play a pivotal As Dubai extends its global reach, we see a horizon filled an extensive network of businesses and contributing to the local economy. Additionally, we have awarded construction Each figure represents not just monetary transactions but with possibilities to export our expertise and experience, role in this ambitious always guided by our enduring principles of sustainability, contracts of around AED 15 billion in 2023 reaffirming our commitment to delivering world-class projects. the essence of our commitment to the UAE’s prosperity. Our concerted efforts have reinforced our role as a catalyst journey. Our path is aligned innovation, and excellence. We spent AED 175 million towards fulfilling our for economic and social development. with Dubai’s dynamic Building Places People Prefer contractual obligations with the Road and Transport Authority (RTA), affirming our commitment to the Contributing to Dubai’s Prosperity aspirations, mirroring our For nearly three decades, Emaar has stood as a synonym for excellence in real estate. When you invest with us, development of Dubai’s enduring infrastructure projects. From the outset, Emaar has aspired to be more than a business shared commitment to you are not just acquiring property; you are embracing a legacy of quality that stands the test of time. At Emaar, In tandem, our disbursements to various government departments totalled AED ~2.5 billion, illustrating our entity; we have aimed to catalyse positive transformation. In partnership with Dubai’s visionary leaders, we have played a innovation, sustainable we see our role as not just builders but also dream weavers positive contribution to Dubai’s economy. pivotal role in metamorphosing Dubai into a vibrant hub of for our customers and youth, shaping spaces for today development, and the and tomorrow. Every decision at Emaar is a step towards Our unwavering commitment to operational excellence has yielded impressive results for Emaar, with our bank commerce, trade, tourism, and entertainment. Our destiny is entwined with that of Dubai, our beloved home. spirit of community. fulfilling this grand vision. balance soaring to AED 33.9 billion—a near doubling from As we step into a future shaped by Dubai’s D33 Economic Our pride extends beyond constructing iconic skylines. the previous year. This milestone underscores our robust Agenda, Emaar is poised to play a pivotal role in this We create experiences that resonate with our customers, financial performance and sound management practices. ambitious journey. Our path is aligned with Dubai’s Mohamed Ali Alabbar tuning into the changing needs of the people who bring By maintaining robust cash flows, we’re empowered to dynamic aspirations, mirroring our shared commitment Managing Director our communities to life. The profound connections we fuel further investments in projects that drive value and to innovation, sustainable development, and the spirit foster between our customers, communities, and people prosperity for our stakeholders. Our success not only of community. make our places more than just spaces – they thrive. reinforces our market leadership but also enhances the | 10 | EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC | 11 |  M A N AG I N G D I R EC TO R ’ S S TATE M E NT The ‘Sandbox Dubai’ initiative under the D33 agenda We recorded group property sales and revenues of Emaar International Much Done, Much More to Do resonates with our ethos of innovation. We are excited about AED 40.3 billion and AED 26.7 billion, marking a growth Our international real estate operations achieved The financial year we have just closed has been strong exploring new technologies and business models that have of 15% and 7%, respectively, compared to the previous year. property sales of AED 2.9 billion in 2023. Revenues from in many ways. We have a significant revenue backlog of the potential to revolutionise the way we live and work, This sustained performance results from the booming international operations represented over 12% of our total ~AED 72 billion, creating a foundation for future stable creating intelligent, interconnected communities. tourism sector, increased retail sales, and a vibrant real revenue, primarily driven by operations in Egypt and revenue. The strong performance from our recurring In 2023, our contributions to Dubai’s property landscape estate market. India. Our operations in India experienced a 4x increase revenue business further fortifies our position, setting the were significant, directly reflected in our revenue, with in property sales compared to the previous year, driven stage for sustained growth in the future. Moreover, our Dubai being a major contributor. Our financial engagements I am proud to highlight the success of our recurring- by the introduction of new launches. strategic capital deployment plan for the next five years extended across various sectors, making substantial revenue portfolio in 2023, including malls, hospitality, provides an additional boost to our recurring revenue leisure, entertainment, and commercial leasing, which We are gearing up to launch several projects in India operations. The assets developed through this plan are payments worth billions to stakeholders, suppliers, achieved remarkable revenue growth. This is coupled over the next 4 to 5 years, with a total development value expected not only to contribute to our revenue streams contractors, and key government bodies such as the Dubai with a substantial increase in net profit, outstripping our of ~US$ 2.5 billion covering over 12 million square but also to elevate the sales price premium on properties Land Department, DEWA, RTA, Dubai Civil Defence, performance in the previous year. The strategic initiatives feet of real estate, further solidifying our presence and surrounding these projects. and the Department of Economic Development. we have embraced over the past two years and a buoyant expanding our footprint in key Indian cities. We are pleased that Emaar’s activities in Dubai, through real estate and retail sector have fuelled this profitable As we move forward, I am confident that we have the both direct operations and indirect influence, significantly growth trajectory. right strategy to deliver on our purpose. Our consistent contributed to the city’s thriving economy in 2023, Emaar Malls, Retail, and Commercial Leasing performance in enhancing sales and profitability reflects amounting to a substantial AED 74 billion. This underscores In 2023, Emaar showcased its ability to adapt and Our shopping malls, retail, and commercial leasing our strategic focus on developing premier residential our commitment to being a constructive part of Dubai’s thrive amidst challenges. Our strategic focus areas have operations achieved revenue of AED 5.8 billion in 2023. environments. Our commitment to excellence resonates economic landscape and working alongside the community kept us agile, resilient, and efficient, as reflected in our This performance is credited to robust tenant sales reaching with our clientele, reinforcing their confidence in our brand. for mutual growth. robust performance. over AED 30 billion in the UAE, which grew by over 21% In 2024, our robust project pipeline, brand positioning, compared to the previous year. Our mall assets achieved an and market insights will ensure we remain on a path of Our cultural ethos is mirrored in our customer base, average occupancy of 97% as of 31 December, 2023. sustained growth and success. where around 40% of our residential property buyers are UAE Development non-residents, symbolising Dubai’s diverse and dynamic Our UAE build-to-sell property development business Notably, Dubai Mall unveiled its latest addition, Dubai I am confident that the alignment and commitment nature. They pledged AED 14.7+ billion of foreign direct sustained its momentum in 2023. With the successful Mall Chinatown with a week-long China cultural event. of our shareholders, Board, and management will help investment of which more than AED 4 billion has already launch of 27 new projects across all master plans in the This new extension not only enhances the Dubai Mall’s us navigate these dynamic times, and deal with the been invested. As we continue to grow, our core aim remains UAE, it achieved sales of AED 37.4 billion, reflecting a appeal but also strengthens the strategic economic ties ever-evolving business landscape. Moreover, the unwavering steadfast: to be integral to the continued success of Dubai growth of over 21% compared to 2022. Led by a strong between the UAE and China. support and visionary guidance from the UAE Leadership and the United Arab Emirates. Dubai property market, we delivered over 12,000 units in will continue to further enhance our performance, 2023, with over 25,500 units in the pipeline for delivery. enabling us to achieve and surpass our goals. Furthermore, our commitment to nurturing local Emaar Hospitality, Leisure, and Entertainment talent aligns seamlessly with the D33 agenda’s focus on Notably, we announced a significant expansion of our Our hospitality, leisure, and entertainment divisions Our progress during the year was made possible by the integrating young Emiratis into the job market. At present, flagship residential development, “The Oasis.” This growth recorded a growth in revenues of ~20% compared ongoing support of our shareholders, and I would like to approximately 18% of our Dubai workforce comprises not only increases its size but also enhances its vision, to 2022, reaching AED 3.4 billion. This growth was thank them for their commitment. I extend my sincere Emirati talent, and we are persistently striving to enhance introducing new projects and further elevating Emaar’s driven by a consistent recovery in the tourism industry, appreciation to the team at Emaar for their dedication and their participation within our overarching human resources sales. The master plan, which has a value of AED 73 coupled with strong domestic spending. pursuit of excellence. I also express my heartfelt gratitude framework. Our human capital strategy is centred on billion, embodies our goal of creating luxury living spaces to the Board of Directors for their continued guidance. training and developing the youth, preparing them for with sustainability, establishing The Oasis as a model for Emaar’s UAE hotels, including those under our management, increased their average occupancy to 72% and sustained Finally, I would also like to thank all our stakeholders for the challenges and opportunities of the future. opulent living in Dubai’s dynamic landscape. their Average Daily Rates level. We expanded our portfolio their support and look forward to their constant support We have also launched our inaugural project in Ras Al of hotels, both domestically and internationally, by as we embark on our journey to propel the company to The Year That Was Khaimah, featuring over 1,100 units, with an anticipated introducing ~1,600 new hotel keys. This growth was marked greater heights. Navigating through various economic cycles, Emaar’s brand completion slated for 2028. by the opening of Vida Creek Beach in Dubai and Address has consistently demonstrated resilience and strength. Jabal Al Omar Makkah. Our ambition is both bold and clear: to keep Dubai at the For me, the journey has always been about nurturing and top of the global city rankings. We aim to achieve this by Moreover, our entertainment and other operations Mohamed Ali Alabbar sustaining an incredible brand; this year has reaffirmed harnessing cutting-edge technology not only to comprehend have demonstrated a strong performance, primarily Managing Director that commitment. but also to anticipate and influence future trends. As a driven by the growth in tourism and the growth of the reflection of this commitment, we have launched two new local population. Our performance this year is a testament to Dubai’s destinations in the city, namely The Heights Country enduring appeal. The success of our newly launched Club and Grand Club Resort (adjacent to the recently projects, with a high percentage of units already sold, unveiled The Oasis), with a combined development reflects this allure. value of AED 96 billion. | 12 | EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC | 13 |  A B O U T E M A A R PRO PE RTI E S Creators of TRANSFORMING LIFESTYLES World-renowned Landmarks Emaar Properties is one of the world’s most admired real estate development companies. The architects of modern Dubai, Iconic landmark offering an exceptional living we give shape to aspirations and Burj Khalifa experience through superior design, technology, and hospitality, redefining urban luxury transform lifestyles with a focus Dubai Mall Dubai Fountain on design excellence, building quality, and timely delivery. This downtown destination offers an unparalleled shopping experience, The world’s largest choreographed fountain, hosting 1,300+ shops and top brands performing to a medley of music and light IN THIS SECTION 26 YEARS OF EXCELLENCE For over two decades, Emaar has been setting benchmarks in the real estate At a Glance 16 industry with our innovative developments, iconic structures, and commitment to Diversified Portfolio of Assets 18 quality. Our transformative projects have reshaped landscapes, offering unparalleled Business Model 22 living experiences to communities worldwide.  AT A G L A N C E Integrated Emaar Properties in a Snapshot 6 AED 70 Bn (US$ 19 Bn) Urban Living Market capitalisation as at 31 December 2023 ~1.7 Bn sq. ft. 4 We are a global leader in real estate and Dubai’s Landbank in countries of operation 5 3 2 1 biggest listed developer with a net asset value of AED 177.5 billion#. Beyond iconic buildings, ~13 Mn sq. ft. GLA of malls and retail centres globally we craft self-contained micro-cities integrating (~10 Mn sq. ft. in Dubai) residential, commercial, and recreational spaces, embodying a commitment to sustainable and S&P, Moody’s, and Fitch upgraded the credit ratings to BBB, Baa2, and BBB, respectively, with a stable harmonious urban living. outlook Map not to scale UAE Development 1 UAE 2 Saudi Arabia 3 India #1 Build-to-sell developers in MENA Landbank Units delivered Units under construction Masterplans 400 Mn sq. ft. 70,000+ 25,500+ 15 Emaar International Developers of masterplans, malls, and hotels in 12 key countries Landbank* Units delivered> Units sold> Hotels ~1.3 Bn sq. ft. 42,000+ 48,300+ 10 Dubai Creek Harbour Abraj Al Hilal 1 Emerald Hills Emaar Malls Management ^ Developers of the most visited mall in the world – Dubai Mall 4 Pakistan 5 Egypt 6 Turkey Gross Leasable Area (GLA): Total portfolio Total brands Occupancy 9.7 Mn sq. ft. 3,000+ Retail Units 2,200+ 97% Hospitality, Leisure & Entertainment and Commercial Leasing Operators of three distinctive global hotel brands and 12+ leisure & entertainment destinations Total hospitality portfolio Total keys@ GLA 34 hotels 8,700+ ~2.5 Mn sq. ft. * This includes 1.1 Bn sq. ft. in Emaar, The Economic City in Saudi Arabia @  xcludes hotel keys whose management agreement got terminated E The Views Emaar Oceanfront Uptown Cairo Emaar Square Mall ^ Including JV # Fair Value > Since inception as at December 2023 | 16 | EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC | 17 |  D I V E R S I FI E D P O RTFO LI O O F A S S E T S A Legacy Defined by Our Creations Characterised by our exquisite design aesthetics, choice of location, architectural excellence and world-class amenities, our properties and signature assets across every real estate segment have created an unmatched legacy that defines us and leaves its deep imprint on cityscapes, neighbourhoods and the lives of communities that inhabit these spaces. UAE Development Emaar International Downtown Dubai 2005 Today Emaar Square Mall in Turkey, presents diverse shopping, entertainment, and gastronomic experiences. As a city focal point, it hosts year-round events and holds the distinction of being one of Turkey’s biggest mixed-use projects together with the Emaar Square project. The adjacent Address Hotel Istanbul adds a touch of luxury through its Skyview terrace and premium services. Total Area Footfall 1.6+ Mn sq. ft. ~11 Mn+ No. of retail outlets Occupancy ʶ 500-acre flagship mega-development ʶ I ncludes world’s tallest building and 300+ +85% ʶ One of the most visited destinations in the world world’s most visited mall GLA Emaar Square Mall 1.48 Mn sq. ft. Dubai Marina 2003 Today The Views epitomises luxury living with its breathtaking seascape and sophisticated interiors. Positioned as part of the signature integrated masterplan development of Karachi’s Oceanfront, it offers a dreamy lifestyle, blending beauty and inspiring scenery for a truly enchanting residential experience. Gross asset value* No. of residential units AED 656 Mn 410+ The Views Emaar GLA Area under development Oceanfront 916,232 sq. ft. 1.38 Mn sq. ft. ʶ L  argest man-made Marina (3.5 sq. km) development of ʶ Total development area of 66 Mn sq. ft. its kind ʶ Includes c.0.4 Mn sq. ft. Dubai Marina Mall * Book value | 18 | EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC | 19 |  D I V E R S I FI E D P O RTFO LI O O F A S S E T S Emaar Malls Management Situated at Downtown Dubai’s beating heart, A premium lifestyle hotel with plush rooms, uniquely a distinguished shopping destination featuring positioned to offer a captivating view of Burj Khalifa and the luxury retailers, marquee global brands, and major beautiful cityscape. tourist attractions. GLA Occupancy 4.9+ Mn sq. ft. 99.7% Footfalls: Retail Outlets Address Gross asset value* No. of keys Dubai Mall 105+ Mn 1,300+ Downtown Dubai AED 691 Mn 220 A premier lifestyle destination punctuated by a unique The first 5-star luxury hotel in Dubai Creek Habour. This selection of retail, dining, and entertainment concepts that architectural spectacle offers scenic views of old Dubai on stimulate one-of-a-kind experiences. one side and the majestic skyline of new Dubai on the other. GLA Occupancy 2+ Mn sq. ft. 97.9% Footfalls Retail Outlets Address Grand Gross asset value* No. of keys Dubai Hills Malls 17.5+ Mn 550+ Creek Harbour AED 583 Mn 223 Hospitality A scenic getaway overlooking the man-made Crystal Lagoon at Dubai’s Creek Harbour, a timeless holiday destination with culinary delights, exciting adventures and more. Address Hotels Vida Hotels Armani Hotels Gross asset value* No. of keys + Resorts* and Resorts Vida Creek Beach AED 198 Mn 99 Hotels Hotels Hotels 13 6 2 Keys Keys Keys Leisure and Entertainment 3,800+ 1,000+ 250+ At The Top, Burj Khalifa Dubai Ice Rink World’s highest observation desk Olympic-sized ice-skating and events venue Dubai Aquarium & Underwater Zoo The Storm Coaster Dubai Hills Mall Features one of the world’s largest acrylic viewing panels Entered into Guinness World Records as the ‘Fastest Vertical Launch Rollercoaster’ * Includes Al Alamein Hotel having 189 keys * Book value and many more attractions... | 20 | EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC | 21 |  BUSINESS MODEL H O W W E C R E A T E V A L U E CONTRIBUTION INPUTS VALUE CREATION PROCESS OUTPUTS TO UN SDGS Financial Capital OUR BUSINESSES STRATEGY Financial Capital Development properties*: AED 41 Bn Revenue growth*: 7% Investment properties*: AED 21.5 Bn Net profit@ growth*: 70% Maintain leadership Bank balances and cash*: AED 33.8 Bn RoCE*: 16% Gross debt*: AED 12.3 Bn Total equity*: AED 86.8 Bn Focus on execution UAE Development Maximise stakeholder Manufactured Capital Page 26 returns Manufactured Capital Total gross landbank*: ~1.7 Bn sq. ft. Units delivered in the UAE: 70,200+ Units under construction*: 33,700+ International units delivered: 42,000+ Average occupancy rate of hospitality business^: 72% Average occupancy rate of Emaar Malls : ^ 97% Emaar International Human Capital Human Capital Page 28 Total employees across the Group#: 8,296 Proportion of female workforce (FTEs)^: 25% Average hours of training per year Total safe manhours worked^: 117 Mn hours per employee across the Group: 3.8 hours OUTCOMES Lost Time Injury Frequency Rate^: 0.025% Safety audits conducted^: 3,277 Employee engagement score : ^ 4.5/5 Total number of fatalities across the Group^: Zero Impact on Dubai’s Economy ʶ Payments worth AED 13+ billion Social and Relationship Capital Emaar Malls made to stakeholders, suppliers, Social and Relationship Capital CSR expenditure by the Group, including Page 30 contractors, and key entities Customer satisfaction score^: 92.6% contributions from Emaar Foundation: AED 54 Mn such as Etisalat and government Total customer service requests resolved^: 99% Active suppliers^: 2,953 bodies such as DEWA, RTA, Dubai Civil Defence, and the Department of Economic Development. Natural Capital and Environmental Projects completed Natural Capital and Stewardship ʶ 12,000+ units delivered in 2023^ Environmental Stewardship Renewable energy capacity^: 11.74 MWp Emaar Hospitality, Leisure, Waste segregation rate^: 33% Total energy consumption^: 896.92 GWh Commercial Leasing, and Renewable energy consumption :^ 17.90 GWh Total water consumption^: 901.53 Mn IG GHG emissions abated through Total district cooling energy consumption^: 281.28 GWh Entertainment renewable sources^: 7,246.41 MTCO2eq Page 32 Total CO2 savings from sustainable * The figure mentioned is on a consolidated basis ^ The figure mentioned is for UAE only district cooling^: 101,690 MTCO2 # Includes permanent employees, temporary workers and interns @ Attributable to Owners | 22 | EMAAR PROPERTIES PJSC | INTEGRATED ANNUAL REPORT 2023 INTEGRATED ANNUAL REPORT 2023 | EMAAR PROPERTIES PJSC | 23 |  BUSINESS REVIEW Segment-wise Breakup of Revenue and EBITDA DIVERSIFIED AND DE-RISKED BUSINESS MODEL Revenue share Our organisation strategically 54% 7% (%) promotes a business mix 12% 18% 9% UAE Development Emaar Malls Entertainment, Leasing, Emaar International Hospitality and Others that is marked by a strong upside in the developme