Written by Gérard Al-Fil, Dubai

Aldar Properties, the leading real estate developer in the oil-rich emirate of Abu Dhabi, earned 1.1 billion dollar in net profit in the first half of the year — a 24% increase.

Behind Aldar’s higher net profit in the first six months was a revenue increase to 18.3 billion dirhams (around USD 5 billion) — a 31% year-on-year rise. In addition to strong demand for existing inventory, new launches in the UAE proved to be bestsellers — particularly luxury apartments in the Waldorf Astoria Residences on Yas Island, Manarat Living III, and The Wilds in Dubai. 

Cairo and London join the Party

The company’s international expansion also paid off. Egyptian property firm SODIC, in which Aldar holds a majority stake, generated USD 70 million in revenue. Its British subsidiary London Square contributed USD 156 million in the first half.

Investors are pleased — Aldar’s share price has risen 22% on the Abu Dhabi Securities Exchange (ADX) since the beginning of the year. 

A City Becomes a Brand

Abu Dhabi (total population: 4.13 million), the largest emirate of the UAE and also the capital of the Gulf state, has scored big in tourism over the past decade. With the annual Formula 1 Grand Prix on Yas Island, the Ferrari World and Warner Bros. World theme parks, and the Louvre Abu Dhabi, the ruling Al Nahyan family has carved out a lasting place in global aviation and tourism. Many visitors and business travelers tour the city or relax at the beach — and end up buying property. The city attracts with tax-free living, high quality of life (safety, malls, etc.), English-language schools, and the well-connected Zayed International Airport.

Seven percent of the world’s proven oil reserves lie beneath the desert and offshore areas of Abu Dhabi. Mubadala, the emirate’s sovereign wealth fund, holds a 25% stake in Aldar. So the real estate giant won’t be running out of petrodollars anytime soon.