Emaar Properties IR 2022 PDF

CONTENTS Introduction ESG at Emaar At a Glance 2 Environment 56 About the Report 4 Social 70 Delivering Value for Our Stakeholders...

CONTENTS Introduction ESG at Emaar At a Glance 2 Environment 56 About the Report 4 Social 70 Delivering Value for Our Stakeholders 6 Governance 80 Chairman’s Message 8 Appendix Message from the Managing Director 10 GRI Content Index 86 About Emaar Properties UN SDGs Content Index 88 Diversified Portfolio of High-luxury Products 16 Industry Context and Performance Who We Are 18 Management Discussion and Analysis 92 Where We Operate 20 Risk Management 106 Key Performance Highlights 22 Our Businesses 24 Corporate Governance Report 110 Value Creation at Emaar Consolidated Financial Statements How we Create Value 38 Directors’ Report 143 Our Stakeholders 40 Independent Auditors’ Report 144 Materiality 42 Consolidated Income Statements 149 Responding to our most Material Issues 44 Consolidated Statement of Comprehensive Income 150 Our Strategy Consolidated Statement of Financial Position 151 Our Strategic Priorities 48 Consolidated Statement of The Sustainable Way Forward 50 Changes in Equity 152 Our Contribution to the UN SDGs 52 Consolidated Statement of Cash Flows 153 Notes to the Consolidated Financial Statements 155  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 2 AT A GLANCE Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 3 TURNING DREAMS A 25-year young company with unbeatable scale TO REALTY Market capitalisation Revenue AED 51+ Bn as at 30 December 2022 AED 24.9 Bn in 2022 We have pioneered the development of master-planned A premium international Emaar Properties PJSC strives to provide its communities and designed integrated lifestyle destinations brand with high recall. customers with the highest possible quality of Core strength Continents present in such as Downtown Dubai, Dubai Marina, Marassi and We promise aspirational life. Our dream is to make our communities Uptown Cairo. We have developed shopping centres, hotels, 1.7 Bn sq ft of land bank Asia, Africa, Europe and lifestyles and build vibrant a place where anything is possible and we resorts, office buildings and apartment complexes, and we in countries of operation North America are renowned for providing our clients with the finest in communities by delivering design and construct landmarks to reflect these modern conveniences, amenities and retail and entertainment spaces where every day possibilities. Each of our buildings exemplifies Global retail presence Competition experiences, right at their fingertips. living is a joy. Our customer innovative design and construction that pushes >12 Mn sq ft GLA of malls and retail #1 Rank amongst Real Estate first ethos drives our the boundaries. centres globally (9.7 Mn sq ft in Dubai) Developers in MENA* service standards. *By Forbes in 2021 Shaping cityscapes… and living it large 2022 at a Glance Financial performance Environment AED 35.1 Bn 3.16 MW Renewable energy capacity (US$ 9.5 Bn) in the UAE Total property sales (including JVs/JDAs) Burj Khalifa Dubai Mall The world’s tallest building with One of the world’s largest and Social 163 floors. most visited malls. AED 53.2 Bn (US$ 14.5 Bn) ~AED 61 Mn Revenue backlog CSR expenditure AED 9.8 Bn (US$ 2.7 Bn) Governance EBITDA 55% Independent Directors on Dubai Opera At the Top Dubai Fountain the Board of Directors This 2,000-seater performing The highest observation deck in At 900-ft, the tallest performing BBB-/Baa3 arts hotspot is a multi format the world. fountain in the world. A spectacular (with stable outlook) space, morphing from a theatre unison of water, music, and light. into a banquet hall at the click Credit rating of a button. Such versatility is unmatched in the world. BB MSCI ESG Rating as on February 2023 EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 4 ABOUT THE REPORT Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 5 OUR INTEGRATED APPROACH Our integrated thinking informs our strategy, governance, prospects and enables us to deliver consistent value to all our stakeholders. We are driven by Integrated reporting and scope Scope and boundary Vision Purpose To redefine engineering excellence This is our 2nd Integrated Report. It reflects our commitment The report covers the strategic, financial, and non-financial to transparent stakeholder communication and setting high performance of all Emaar Properties PJSC’s business units Our purpose is to be the most admired realty Mission business standards. It provides our stakeholders with a concise and assets. group globally, transforming the lives of our To create futuristic residential, retail, yet detailed assessment of our ability to create sustainable customers by delivering spaces that engage, entertainment & leisure assets transforming value in the short, medium, and long term. The report the lifestyles of people globally focuses on Emaar Properties PJSC’s performance, strategy, Reporting framework and standards excite and enrich. We ensure long-term income and challenges. This report has been prepared in accordance with the and wealth creation from the assets we create Goal following standards and frameworks: through our 360-degree involvement across To deliver sustainable long-term growth and International Financial Reporting Standards (IFRS) asset lifecycles. value creation Materiality International framework of the Value We apply the principle of materiality in assessing what Reporting Foundation information should be included in our integrated report. GRI 2021 Standards Accordingly, this report focuses particularly on those issues, Focusing on Supported by Enabled by opportunities, and challenges that materially impact on the Material issues Governance Strategy ability to create value in the short, medium, and long term. Page 42 Page 80 Page 46 Identifying and Interviewing Assessing Forward-looking statements With a consistent eye on Creating a positive impact on Alignment with Materiality Compiling and Certain information set forth in this report contains “forward-looking Risks Opportunities Environment Social Strategic Intent process Clustering information”, including “future-oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward- looking statements). Except for statements of historical fact, the information Page 106 Page 96 Page 56 Page 70 contained herein may constitute some forward-looking statements. Such forward- looking statements are provided to allow potential investors the opportunity to Validation Prioritisation understand the management’s beliefs and opinions regarding the future so that they may use such beliefs and opinions as one factor in evaluating an investment. For stakeholders Material issues 42 Although forward-looking statements in this report are based upon what management of the Company believes are reasonable assumptions, there can be Partners no assurance that forward-looking statements will prove to be accurate, as actual Investors People Customers and Suppliers Communities Environment results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Reporting period Feedback and suggestions 01 31 Feedback from our internal and external stakeholders helps and supports us to strengthen our practices and performance further. In case of feedback, reach out to: January 2022 December 2022 Abhay Singhvi Head - Investor Relations at Emaar Properties Email: [email protected] EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 6 DELIVERING VALUE FOR OUR STAKEHOLDERS Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 7 DELIVERING Investors Customers People CONSISTENT PROGRESS We connect with and impact a broad range of stakeholders. In 2022, we created a significant positive impact through our business. Superior stakeholder Best-in-class products Protecting and nurturing Our sustainable operations enabled us to make returns through optimal and services our employees a difference in people’s lives. utilisation of resources ~10% 99% ZERO Return on Capital Customer complaints Fire incident in Dubai Employed resolved (UAE) At Emaar, we prioritise customers 100% AED 0.83 4.64 out of 5 and create value for all stakeholders Earning Per Share (EPS) Customer satisfaction Compliance to Emaar’s by providing an aspirational score (UAE) HSSE standards (UAE) lifestyle beyond dreaming big. Our dedication to quality and Partners Communities Environment excellence ensures long-term value and Suppliers creation. Our unmatched expertise in building vibrant communities, coupled with our vision and ambition, delivers value and Creating an inclusive Empowering beneficiaries Minimising our impact on ecosystem for partners through our partnerships the environment meaning to all our stakeholders. ~AED 5.4 Bn ~AED 61 Mn 68,473 MT Value of projects CSR expenditure by the Waste segregated awarded in the UAE Group (UAE) EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 8 CHAIRMAN’S MESSAGE Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 9 SHAPING THE TOMORROW WE DESIRE, TODAY Dear Stakeholders, international markets are primarily driven by regional growth. been rendered plastic-free, leading to a substantial reduction More than 57% of our customers in Dubai are residents—and in waste to landfills. At the overarching level, ideation is A new, post-pandemic world is upon us, where the way we international markets continued to be strong. underway on how we could make our business green. live, work, and play has been permanently altered. Adapting to such changes calls for reimagining spaces with flexibility 2023: The year of sustainability The sustainability challenge opens up exciting possibilities and wellness at their core. Our record sales of residences, The UAE has undertaken extensive efforts in recent years for doing things very differently and making the most of high occupancy at our offices, hotels and malls, and a towards driving sustainability in the country under the our developmental phase. Dubai, along with several other robust pipeline of highly anticipated projects testify to the Dubai 2040 Urban Master Plan, and in alignment with the cities across Asia, Africa and Eastern Europe is in a state of attractiveness of our properties to our customers and investors UAE Energy Strategy 2050, the Paris Agreement and the developmental flux – with urban planning underway, and the alike, at home and abroad. UN Sustainable Development Goals (SDGs). His Highness built environment getting extended and modified constantly. Sheikh Mohamed bin Zayed Al Nayhan, UAE President, There lies the immense scope for greater sustainability in the It also reflects their confidence in Dubai’s future. Emerging has recently declared 2023 as the year of sustainability, building materials we use, in energy optimisation, through quickly from the pandemic, Dubai has strengthened its to promote innovation so that relevant and need-focused the re-utilisation of materials and waste, and in better spatial credentials as a world-class city that offers safety, high solutions can be found that help to bridge the transition and logistical design. quality of life and good governance, prompting people from between the conventional and a more sustainability-oriented across the world to align their aspirations with the nation’s society. As one of the world’s fastest-growing cities, Dubai has Reinforcing commitment ambitions. Thanks to the visionary leadership of His Highness the responsibility to champion sustainability, which is one of We remain committed to bringing luxury living to the Sheikh Mohammed Bin Rashid Al Maktoum and progressive the priorities for 2023 by His Highness Sheikh Mohammed world—defining high standards, and delighting customers government policies, the United Arab Emirates (UAE) is Bin Rashid Al Maktoum, ruler of Dubai. with more than they desire. Our strategy of masterplan-led looking forward to an exciting tomorrow. development and the unique mix of comfort, convenience, The Dubai government’s ‘Green Economy for Sustainable glamour, and entertainment that we offer is a blueprint for Delivering strong performance Development’, announced in 2012, sets the direction for our international markets too. Across the regions where we are The efforts made by the government to diversify the UAE establishing the country as a model for the new green extending our presence, we are developing iconic properties economy, strengthening competitiveness and preserving that empower people to shop, eat, work, play and live in new Our balance sheet economy and enable Dubai to be a business-friendly city through progressive and pragmatic legislation make it easier the environment for future generations. UAE will be hosting ways. By blending great locations, excellent design, innovative the COP28 conference in late 2023, and this will mark the technology and imaginative thinking, we hope to bring strength, robust cash for us to stretch the boundaries of possibilities and welcome enterprise to our shores. The UAE economy grew by 6.5% coming together of a host of initiatives to achieve the UAE’s luxury living to more and more people. Net Zero by 2050 strategic initiative. flows and profitability, in 2022 thanks to a strong comeback in travel and tourism, business, retail, construction, and activities related to the Note of gratitude Building future-ready Emaar On behalf of the Board, I wish to express our heartfelt impeccable execution Expo 2020 Dubai. Oil production also went up. Emaar, as the largest integrated developer in the region gratitude to our shareholders, customers, business associates and one of the largest globally, has been completely aligned and partners for your unwavering support. We are also track record, and It was also an excellent year for the real estate market in the UAE, with sales and income reaching multi-year highs with the Dubai 2040 Urban Master Plan which maps out thankful to our Board of Directors for their invaluable a comprehensive plan for a sustainable urban development guidance and wise counsel. future‑forward ideas will in many areas. A stable cost environment meant easing supply‑side pressures, leading to faster execution and in Dubai. It focuses on enhancing people’s happiness and quality of life and reinforcing Dubai as a global destination enable us to successfully deliveries. We achieved property sales of AED 35.1 Bn, benefiting from both the macro tailwinds and strong demand for citizens, residents and visitors over the next 20 years. With an aim to make UAE one of the world’s best countries navigate any headwinds for real estate, and reaping the fruits of the strategic measures put in place during the pandemic. with sustainability conundrum, we have taken specific Jamal Bin Theniyah measures, such as eradicating single-use plastics and moving that may arise. Our balance sheet strength, robust cash flows and to biodegradable items in our hospitality chains. From our Chairman profitability, impeccable execution track record, and restaurants to our guest rooms and conference venues, all have future‑forward ideas will enable us to successfully navigate any headwinds that may arise. Further, both our domestic and EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 10 Message from the managing director Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 11 ONWARD TO NEWER HORIZONS Dear Shareholders, Emaar Development Emaar Mall Management Our build-to-sell property development business achieved Revenues from our Malls business saw a healthy increase If the previous two years were an indication of how resilient property sales at AED 30.7 Bn, marking an increase of of 8% on the back of Dubai emerging as a leading tourism and well established our organisation is, then this year is all 12% compared to 2021. Led by the resilience of the Dubai destination. This was reflected in tenant sales growing by over about affirmation and fresh starts. Now that the challenges property market, we delivered 6,100 units in 2022 and 40% vis-à-vis pre-pandemic levels. Even our latest entrant— of the pandemic are firmly behind us, we are witnessing ~9,000 units are in pipeline for delivery in 2023. Net profit Dubai Hills Mall, a large regional shopping format launched the financial fruits of a robust recovery. There is widespread attributable to owners of Emaar Development rose 17% to in February 2022–achieved 91% occupancy within a mere assurance and a sense of urgency to get things done. As in the touch AED 3.8 Bn. Open spaces and waterfront locations span of 10 months from its launch. Our mixed retail format years of the pandemic, our Rulers and the Dubai Government remain the most preferred, with apartment sales accounting portfolio enables us to strategically position super regional, have been our guiding light, stimulating economic vitality for the lion’s share. regional, speciality and community-integrated retail to meet a through investment-friendly schemes, the most recent being wide range of shopping and consumption needs. We have one the Golden Visa programme. With Dubai’s commercial, We continued to fulfil our commitments across many of the industry’s most diverse mix of brands and high-street trade, logistics, and tourism activities swiftly resuming to signature locations we have launched, with 6,100 units across retail with various product categories in the offering mix. normalcy and its ambitious ‘D33’ agenda, the city’s growth our master plans like Dubai Hills Estate, Downtown Dubai, This strategy has proved very effective and complements our story remains as alluring and enduring as ever. Emaar Beachfront, and other locations in Dubai being mixed-use development-based business model. handed over to owners. Strong financial performance We are constantly making sure that it remains a win-win Our record performance this year bears out Dubai’s Our shareholders approved the landmark deal of fully situation for our lessees and us through active tenant and continuing appeal to the millions who visit our city and acquiring Dubai Creek Harbour for AED 7.5 Bn in 2022, space management, with shorter and favourable lease terms professionals who choose to stay and build their lives here. which sets the stage for another spread of stellar landmarks. and zoning and re-zoning of space to ensure consistent Emaar continues to be the first choice among customers, The large land tract and the waterfront location on the banks profitability. Our operational performance remains under which reflects in the Company’s performance. This year, our of the historic Dubai Creek will give us ample scope to take constant watch, with efficient and low-cost operations being newly launched projects have done exceedingly well with 98% the ‘city-within-a-city’ experience to new heights. the norm. Customer-centred delivery of the retail experience of the units launched already sold, aggregating a Year-on-Year is another area of strategic focus, and through our Dubai Mall Emaar’s transformational (YoY) increase in sales of 12%. Emaar International International markets continue to form a critical part of App 2.0, we have taken definite steps. The app’s proximity connectivity and data analytics help the customer in many growth agenda has Consolidating the high-growth trend, this year Emaar Properties PJSC has reported group property sales of our growth strategy. Our masterplan-led, marquee project- centred development forms the foundation of our entry into ways, including better navigation to travel to and from the mall, along with judicious push incentives such as offers and advanced with scale and AED 35.1 Bn, revenues of AED 24.9 Bn and a net profit attributable to owners of AED 6.8 Bn. Recurring revenue high-potential markets. We will utilise our landbank of 1.3 Bn sq ft and look at mutually beneficial JVs and JDAs loyalty benefits for heightened stickiness. speed over the last year, operations continued to stay robust, comprising 36% of total revenues, while recurring EBITDA contribution has reached for large projects. We are also eager to take our recurring revenue businesses of malls, retail and hospitality to more Emaar Hospitality, Entertainment, Commercial Leasing, and other operations owing to a number of 53% of total EBITDA. Our property sales backlog of AED 53.2 Bn signals a very healthy financial position and secures countries, as their unique brand and service values will help strengthen Emaar’s value proposition. Focused marketing The strong rebound in Dubai’s travel and hospitality industry powered our hospitality business. Our Hospitality revenues significant transactions our near-term prospects. efforts are underway in China, India, Saudi Arabia and a few other countries as we explore various options. This year our increased from AED 1.2 Bn in 2021 to AED 1.6 Bn in 2022, marking an increase of 25%. Average Daily Rate (ADR) and and strategic development In the post-pandemic phase, Dubai has witnessed high international traveller footfalls and received the highest international business booked property sales of AED 4.3 Bn despite some of our primary international markets facing occupancy rates remained well above the market averages. While Dubai Tourism endorsed our hotels for the highest projects which include international tourist spending at US$ 29.4 Bn. This resurgence in the tourism sector is reflected in our hospitality significant headwinds as a consequence of the current global economic situation. The performance of international safety and hygiene standards, reassuring pandemic-weary travellers, several of our signature properties also received substantial geographic and revenues, which have grown by 25% YoY, while our Malls business recorded 8% YoY growth. operations was led by successful performance in Egypt and India. international attention. Net profit attributable to owners from the hospitality business jumped by 55%, reaching AED 494 sector expansion across Emaar’s transformational growth agenda has advanced with Mn versus AED 318 Mn in 2021. the platform. scale and speed over the last year, owing to a number of significant transactions and strategic development projects that have laid the groundwork for the company’s accelerated execution of the said agenda, which includes substantial geographic and sector expansion across the platform. EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 12 Message from the managing director Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 13 Our record performance this year bears out Dubai’s enduring appeal to the millions who visit our city and professionals who build their Revenues from our Entertainment, Commercial Leasing Emaar is well poised to deliver on these high expectations. lives here. Emaar continues to be the first and other businesses grew by 137% YoY, from AED 915 Mn in 2021 to AED 1.8 Bn in 2022, owing to the resurgence Taking luxury living to the world distinguishes us, and we now have a robust domestic and international pipeline of units choice among customers. Our newly launched of tourism, increased footfalls, and resumption of normal business operation post pandemic. under development, with several iconic retail, entertainment and development landmarks already rolled out or at the properties have done exceedingly well in Imperatives for the future development stage. With a revenue backlog of AED 53.2 Bn to be recognised over the next 3-4 years, our balance sheet has Dubai with 98% of units launched already The charter for the future is to drive growth responsibly and sustainably. For instance, in our Arabian Ranches and significant cash flow built in. sold, aggregating a Year-on-Year increase in Emirates Living properties, innovative technology like ultrasonic algae control devices have been introduced to With a strong balance sheet and comfortable credit matrices, we are well-placed to crystallise our ambitious plans for property sales of 12%. reduce chemical usage for arresting algae growth. We have already put in place plans and strategies for reducing Dubai. As part of our de-risked approach, we will continue to explore larger collaborative ventures with GREs in the Dubai operational and embodied carbon. Our drive towards more market, or via partnerships with prominent players in the sustainable operations aligns with Dubai’s Green Vision, international market. This will help us achieve larger scale, the UAE’s external commitments, and the United Nations gain access to highly attractive land parcels and leverage a Sustainable Development Goals (UNSDGs). wide variety of skills. We remain committed to running our organisation in a At Emaar, we firmly believe that it is our responsibility to transparent and accountable way. Accordingly, our Board has create structures that shape the dreams of our customers and approved a new dividend policy that proposes an increasing the youth —to embrace human possibilities for now and into share of dividends linked to our performance and will make the future. Every business decision that we take seeks to fulfil our stakeholders true partners in our success. this larger purpose. Poised for accelerated growth The financial year we have just closed has been exceptional in many ways. We have seen tremendous growth in all our segments, with manifold increase in tourist traffic and a Mohamed Ali Alabbar strong trade and commerce resurgence. These trends highlight Managing Director Dubai’s prominence as a growth magnet within the MENA, Emaar Properties PJSC Asia and other regions. With the pandemic years now behind us, we ramp up our plans to make Dubai one of the most powerful metropolises of the world in line with Dubai Economic Agenda ‘D33’. EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022 ABOUT EMAAR PROPERTIES Emaar Properties PJSC (DFM: EMAAR) is one of the most premium and renowned realty developers in the world. The architect of modern Dubai, Emaar, has become synonymous with high‑build quality, prime locations, superior maintenance standards resulting in exclusive lifestyles, high rental yields and robust RoI.  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 16 Diversified portfolio of high-luxury products Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 17 UNCOVERING PREMIER Dubai’s iconic landmarks are also our strongest assets. They are the magnets that draw people to Dubai, generating business across our verticals. LIVING… COMPLETELY As a broad-spectrum real estate conglomerate, we deliver a range of experiences to our users and multiple sources of value to our business clients. This year, the growth momentum has leapt ahead across almost all our businesses. Dubai Fountain Dubai Opera The world’s tallest performing A multi-format theatre that uniquely Emaar fountain that enthrals all. brings alive arts and music, attracts famous performers from the Development world over. Offering an unmatched experience to investors and home-owners alike Emaar Dubai Mall International Value proposition Burj Khalifa Address Hotels + Resorts One of the world’s most visited malls, Present in markets with high Value proposition Value proposition with 1,200+ stores and marquee global growth potential Iconic landmark offering exceptional Luxury hospitality with iconic brands. A hard-to-beat retail and experience through design, architecture, prime locations, stylish entertainment experience, with major technology, and hospitality, redefining rooms, dining, and leisure facilities tourist attractions. Emaar Malls what’s possible. Target market segments Target market segments Management Target market segments Luxury and high-end segments of Upscale travelers and business professionals seeking luxury and From sophisticated, high-income visitors to thrill seekers, Dubai Mall Focussing on premium retail destinations tourists, residents, and tenants. prime location. has something for everyone. We are constantly adding to Dubai’s list of attractions Emaar and this year was no different. Hospitality Catering to a sizeable mix of domestic guests, Dubai Hills Mall* and travellers from around the world Value proposition A premier lifestyle destination featuring a unique selection of retail, dining, and Emaar Leisure & entertainment concepts stimulating one‑of-a-kind experiences. Entertainment Target market segments Serving younger clientele and Affluent and high-end shoppers, tourists, business travellers, and families seeking thrill and fun expatriates from the region and beyond. *A Joint Venture with Meraas EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 18 Who we are Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 19 A GLOBALLY ADMIRED Dubai: Amongst the Top 5 most visited places# REAL ESTATE COMPANY Emaar is well poised to capitalise on this upward trend and saw a 80% jump in net profit* on YoY basis, and a 10% increase over Within GCC, Dubai has been a growth engine, with 2022 pre‑pandemic levels. Emaar is one of the largest real estate players in the seeing the strongest post-pandemic bounce back. The revival Gulf Cooperation Council (GCC) region – a group in oil demand, coupled with the expansion of the Golden Total international visitors of countries that are projected to have a combined 11.40 Mn Visa scheme and pickup in international business and tourism GDP of US$ 6 trillion by 2050. Partnering in the re‑energised Dubai’s real estate sector. transformation of Dubai along with its visionary leaders, Emaar has been instrumental in turning The resurgence in tourism and investor interest in Dubai has been reflected in Emaar’s exceptional financial performance 2022 the sandy stretches along the Arabian Gulf into the this year. Across our businesses, revenues have been commercial, trading, tourism and entertainment hub that is the Dubai of today. consistently strong over quarters, helping to fuel further expansions, innovations and new launches. 4.88 Mn 2021 13.50 Mn 2019 #Department of Tourism and Commerce Marketing, Dubai *Attributable to Owners Emaar Development Emaar International Largest build-to-sell developers in MENA with a land Taking forward our legacy of creating high-quality, bank of 346* Mn sq ft (including prime areas like Dubai residential, and commercial spaces with world-class features. Hills, Dubai Creek and others). We have an existing footprint in Egypt, Turkey, India and Total count of units delivered since 2002: Pakistan with increasing regional presence in the GCC with the opening of Vida Hotel in Bahrain and planned opening Gross Asset Value (GAV) We are a AED 51+ Bn 58,000+ of Reel Cinemas in Saudi Arabia and Bahrain. AED 211 Bn Fair value AED 132 Bn Book value diversified conglomerate Total count of units released/pipeline till Page 24 date: 49,000+ Recurring revenues Emaar Properties in a snapshot *Includes Lusaily land bank of Emaar Properties PJSC Page 26 36% of our revenues 36% from recurring rental businesses of malls, Financial strength hospitality, leisure and Business segments entertainment #1 in Revenue* Ranked amongst #1 in Net profit* Ranked amongst Emerging Emerging markets markets (excluding China) (excluding China) Emaar Malls Hospitality, Entertainment, and International 17% Management Leisure & Commercial Leasing development revenues Wholly-owned shopping malls and retail arm. It owns and Premier global provider of enriching, personal, and 17% of our Group Sustainability develops premium shopping malls and retail assets. More than memorable lifestyle experiences across hospitality, leisure, revenues from 3.16 MW ~24% 80% of our retail revenues are generated by the iconic Dubai Mall. entertainment, and commercial leasing. International Solar Power Female Development operations capacity in 2022 (UAE) workforce in 2022 (UAE) Total area of malls and retail centers: Total number of hotels 12 Mn sq ft globally (including managed properties): 37 (AED 4.2 Bn) We are a trusted brand, 33% of our sales in Page 28 Page 32 the UAE are made to repeat buyers in 2022. *As at 31st December 2022 EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 20 Where we operate Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 21 GOING PLACES WITH THE EMAAR BRAND As the Dubai economy continued to diversify and grow, bucking recessionary Market leader in Dubai’s Real Estate International footprint Development space trends in other major world markets, Emaar benefited both from investor and end- 9,000+ units user demand by virtue of its dominant position. Our premium offerings led to Sold this year AED 4.3 Bn 17% a steady offtake across segments. We (US$ 1.2 Bn) Revenue contribution to Group continue to consolidate our presence in key 27,000+ residences 58,000+ International property sales in 2022 revenue international markets. Currently under Residential units development in UAE delivered International 1.3 Bn sq ft Access to premium landbank credentials Sizeable mix of clients 45,000+ 33,000+ Units sold since inception Units delivered since inception Key focus countries Egypt 16,700+ India 25,900+ Pakistan 3,200+ 98% 2% 90% 10% 90% 10% Turkey 1,300+ Saudi Arabia 1,000+ % Sold of units released % Unsold of units released Units released 100% 88% 12% EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 22 KEY PERFORMANCE HIGHLIGHTS Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 23 GROWING AND Emaar Malls PROGRESSING Development 21% 2022 99% 2022 We continued our growth momentum driven by robust property sales and a steady performance AED 30.7 Bn Growth in Occupancy rate of Dubai of our recurring revenue business. (US$ 8.4 Bn) 2022 EBITDA Malls, Emaar Malls Management’s prime asset Worth of property sales AED 24.9 Bn AED 53.2 Bn 12% (US$ 6.8 Bn) (US$ 14.5 Bn) YoY growth Dubai Creek Harbour Revenue Property sales backlog translating 2022 Acquired Dubai Creek Harbour for AED 7.50 Bn, in a 50:50 cash to into prospective revenues equity split. The development is along the historic 80% Increase 18% Increase Dubai Creek waterfront and carries Hospitality, attractive profit opportunities. This beautiful waterfront location will 2022 2022 Leisure, give us a chance to fulfil the existing demand for water-facing living spaces, Net profit* EBITDA Entertainment and to recreate the heightened luxury that Emaar is well known for. *Attributable to Owners & Commercial Leasing Dubai Hills Mall We started operations at Dubai Hills AED 3.4 Bn Mall in 2022. It is part of the Dubai Hills Estate masterplan which spans (US$ 929 Mn) over 118 Mn sq ft with 2,000+ villas and 20,000+ apartments. Revenue Strategically positioned near upcoming residential communities, 57% as well as thriving existing ones, the mall has 550+ retail outlets, and YoY growth carries strong growth potential. 24% The Views at Emaar Oceanfront North Tower, The Views at Emaar YoY increase in ADR Oceanfront was launched during 2022 in Karachi, Pakistan. 2022 Nestled along the Arabian Sea coastline, the Oceanfront includes a mix of ultramodern residential, retail and hospitality destinations, recreation spaces, and business hubs. EMAAR PROPERTIES PJSC INTEGRATED ANNUAL REPORT 2022  Industry Corporate Consolidated About Emaar Value Creation Our Context and Governance Financial 24 Our Businesses Introduction Properties at Emaar Strategy ESG at Emaar Performance Report Statements 25 How the business performed EMAAR During the year, the business recorded its record property sales on the back of post-Covid revival in business and investor interest and a high growth multiplier within the GCC region. Our sales figures saw a 12% Key numbers ~1% of sales value DEVELOPMENT increase to AED 30.71 Bn in property sales compared to the previous year. In addition, our revenue was AED 11.5 Bn and our EBITDA was Default rate AED 4.2 Bn. Our net profit* increased by 17% to AED 3.8 Bn. AED 41.3 Bn Sales backlog From waterfronts to golf greens, promenades Translate into future revenues to skyline views, and high-street designer Our ability to deliver an exceptional experience continues to translate into our performance. 98% of our projects under construction have been sold. ~346 Mn sq ft villas to serviced apartments, our residencies Emaar Development has a robust property sales backlog of AED 41.3 Bn Land bank# offer users a wide berth to fulfil their desires. (including JVs/JDAs), which will be recognised as revenue over the next Our focus is on delivering premium living 3-4 years.