EMAAR DEVELOPMENT PJSC — Annual Report 2021

Mar 22, 2022

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INTEGRATED ANNUAL REPORT 2021 EMAAR DEVELOPMENT PJSC

At Emaar Development, we believe in creating homes that people are excited to live and invest in. We also believe in being responsible to our environment, while continuously attaining robust standards of corporate governance and superior returns for our stakeholders.

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WHAT’S INSIDE

What’s Inside

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6 8
Chairman’s Executive
message Director’s
message
18 36
Our business Strategic
model pillar 1: Forefront
of Shaping Cities
42 46
Strategic Strategic
pillar 3: pillar 5: Attaining
Operational ESG Distinction
Excellence
52 56
Focus area 1: Focus area 3:
Health and Our customers
safety
60 66
Focus area 5: Management
Sustainability Discussion and
Analysis
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to view this Integrated Report online, visit: https://www.emaar.com/

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About this report 4
Chairman's message 6
Executive Director's message 8
SECTION 1: Who we are 12 - 17
Highlights 12
Group overview 14
Group structure 16
SECTION 2: Our Priorities & Strategies 18 - 51
Our business model 18
How we create value 22
Materiality report 24
Strategic pillar 1: Forefront of shaping cities 36
Strategic pillar 2: Creating the best places 40
Strategic pillar 3: Operational excellence 42
Strategic pillar 4: Strong future pipeline 44
Strategic pillar 5: Attaining ESG distinction 46
Our environmental and social outcomes 50
SECTION 3: Our Focus Areas 52 - 65
Focus area 1: Health and safety 52
Focus area 2: Financial capital 54
Focus area 3: Our customers 56
Focus area 4: Our people 58
Focus area 5: Sustainability 60
SECTION 4: Industry Context & Performance 66 - 83
Management discussion and analysis 66
Risk management 82
SECTION 5: Corporate Governance Report 84 - 113
SECTION 6: Financial Statements 115 - 150
Directors' Report 115
Independant Auditors' Report 116
Consolidated Financial Statements 120
SECTION 7: GRI Index 152
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EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

ABOUT THIS REPORT

About this Report

Emaar Development PJSC recognises that transparent reporting of our performance, strategy and challenges is a critical part of our responsibility towards all our stakeholders. We believe that full and transparent reporting lifts our performance. By adopting the best global frameworks, we strive to set a high business standard at the Group. Through this report, we provide an extensive outline of the Group’s holistic approach towards the development of the economy. The report further gives an understanding of how it is creating value through its strategy, governance, performance, and opportunities.

Materiality

Integrated Reporting & Scope

• Quarterly Results Presentation: The current reporting period’s financial results and detailed segment information for projects including major real estate projects, investments, and pipeline of masterplans.

This is the first Integrated Annual Report of Emaar Development PJSC. We have prepared the Integrated Report for 2021 with reference to the International Integrated Reporting Council’s (IIRC) International Integrated Reporting Framework. We understand that the Integrated Report framework provides a useful basis for disclosing how we create sustainable value for our stakeholders. This Report is our value creation story. We aim to present a holistic review of how we performed in 2021 and our roadmap for the future. We place emphasis on what matters most to our stakeholders and our business and explain how we identify and address material issues through our Materiality Report. To provide business context, we outline our strategic pillars and explain how they influence our business presence and business segments. With a welldefined business model, we illustrate how we create long-term value for our stakeholders while recording consistent organisational growth.

A matter is considered material if management and those charged with governance believe it could significantly impact the value created and delivered in the short, medium and long term. Furthermore, we capture feedback through engagement and research conducted from time to time from key external stakeholders including investors, analysts, and other relevant groups. The outcomes of these processes are detailed on pages 24 to 35 under “Materiality Report”.

• https://www.emaar.com/: Includes additional information on sustainability reporting, corporate governance and historical financial information.

Reporting Ecosystem

Our reporting ecosystem provides information about the organisation and its key financial and operational achievements including:

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• The Integrated Annual Report: Features information about Emaar Development PJSC, our strategy, integrated financial and operational performance, corporate governance, directors’ report and financial statements.

https://www.emaar.com/

How to use this Report

Reporting Period

The following icons have been used throughout the report to link relevant issues and illustrate how we create value.

The Integrated Annual Report for Emaar Development PJSC is produced and published annually. This report provides information for the financial year January 1, 2021 to December 31, 2021.

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Our Focus Areas Our Strategic Pillars
1 Focus Area 1: 1 Pillar 1:
Health and Safety Forefront of Shaping Cities
2 Focus Area 2: 2 Pillar 2:
Financial Capital Creating the best places
3 Focus Area 3: 3 Pillar 3:
Our Customers Operational excellence
4 Focus Area 4: 4 Pillar 4:
Our People Strong future pipeline
5 Focus Area 5: 5 Pillar 5:
Sustainability Attaining ESG distinction
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Reporting Structure

The financial and statutory data presented in the Report is in accordance with International Financial Reporting Standards (IFRS). The non-financial data in the Report is guided by the IIRC framework.

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UN SDGs
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Forward-Looking Statements

Certain information set forth in this report contains “forward-looking 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 contained herein may constitute some forward-looking statements. Such forwardlooking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.

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These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.

Although forward-looking statements contained in this report are based upon what management of the Group believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Group undertakes Material Aspects 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 forwardlooking statements.

Our responses to highly material aspects: 24 to 35 under “Materiality Report”.

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CHAIRMAN’S MESSAGE

Chairman’s Message

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We intend to realise the full potential of our existing and new masterplans through the development of high quality and sustainable buildings, and by aligning our value proposition that will appeal to tomorrow’s businesses and workers.

Mr. Adnan Kazim

Chairman

Dear Stakeholders,

The United Arab Emirates (UAE) has been globally recognised for running one of the best campaigns to counter the COVID-19 disruption and has become a model for other countries to emulate. I would like to thank His Highness Sheikh Mohammed Bin Rashid Al Maktoum, and the UAE Government for taking bold steps in protecting the people of the UAE and its economy through the various decisive and timely initiatives taken. Thanks to these efforts, the UAE is exhibiting a strong rebound with a bright future ahead.

2021 saw the continuation of the Covid-19 fallout led by new variants with varying health impacts. At the same time, aggressive vaccination of the population in the UAE and across our key international markets meant that respective economies could revert back to operations with less restrictions, ensuring that the economic predicament from

the early waves in 2020 that impacted economies, operations, and livelihoods worldwide, were less intense and better managed. Much credit goes to around the clock efforts of front-line healthcare workers worldwide.

Throughout the period, we persisted with our various responses and initiatives to take preventative and screening measures to ensure the health and safety of our employees, contractors, residents, and visitors. In these extraordinary last two years, I have been immensely proud of the way our people have teamed up together to support our customers, our communities and each other.

The pandemic has also acted as a catalyst for the growth of flexible working from both offices and homes, and the repurposing of spaces within residences and commercial work spaces. At Emaar, we have responded to these trends with agility, offering more flexible working environments to our people and permeating digital transformation across more functions within our business.

Furthermore, the UAE property market in general has been rebounding on the back of government initiatives, such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme and the economic boost from Expo 2020 Dubai. It is heartening to see the resurgence of demand for our residence and commercial spaces – a true vindication of Dubai’s resilience as a great destination and Emaar’s solid franchise recognition.

UAE’s ESG vision and Emaar

In recent years, the UAE has deployed extensive efforts towards driving sustainability forward in the country under the framework of the UAE Vision 2021, Dubai 2040 Urban Master Plan, and in alignment with the UAE Green Agenda 2015-2030, the Paris Agreement

and the UN Sustainable Development Goals (“SDGs”). The UAE government regards climate change as a great concern and in line with this they have extended their efforts through their global participation and internal policies, placing themselves among regional leaders in climate action over the past decade.

As the largest integrated real estate developer in the region, Emaar has been in sync with the UAE Vision 2021 towards making the UAE one of the world’s best countries. Our number one strategic pillar is to be at the Forefront of Shaping Cities, in which we develop and operate outstanding urban centers and neighborhoods which deliver positive economic outcomes for all our stakeholders on a sustainable basis, intrinsically shaping a city’s economy and the way people live, work and play. Going forward, we intend to realise the full potential of our existing and new masterplans through the development of high quality and sustainable buildings, and by aligning our value proposition that will appeal to tomorrow’s businesses and workers.

This also ties into another one of our key strategic pillars, and that is for attaining ESG distinction. Building on our track record of multiple initiatives on the environment, social and governance areas, we are establishing new goals to accelerate our progress and are in the process of setting new short and long-term targets. We are instilling sustainability as a basic hygiene practice in which each of us are environmentally and socially discerning, as well as making sound financial sense. Through our new strategies, we aim to take our whole portfolio to net zero carbon over time in line with UAE’s Net Zero 2050 strategic initiative, and keep growing social value and well-being in the communities where we operate. While concentrating on these areas, we intend to maintain strong performance on social and environmental priorities, in line with our purpose and values.

Customer Centricity by Design

At Emaar, we are applying our mastery to create spaces that people single out to spend their lifetime. We are designing our buildings as solutions for problems and opportunities by focusing on the needs, contexts, behaviours, and emotions of people from all sections of the society. This means that our spaces are intrinsically places for people to come together, and where connected spaces create an experience. The last two years have transformed the way we live, work, and play. Residences need to be multipurpose and conducive to working and studying, while offices need to be adaptive to accommodate safe distancing requirements. To cater to various needs under the new norm, we have been designing our new spaces with greater wellness and flexibility in mind. Our record sales of residences are testimony to the fact that customers find our products appealing to their needs and requirements. Going forward, we intend to stay highly relevant to current trends in what residents want.

Appreciation

Emaar has proven its ability to address near-term challenges and opportunities following the COVID-19 crisis. We are constantly refining our strategy, reinforcing our frameworks and futureproofing our business. I am confident that our balance sheet strength and our people’s resolve will keep us in good stead for any new headwinds that might arise. On behalf of Board, I wish to express our heartfelt gratitude to our shareholders, customers, business associates and partners for your unwavering support. We are also thankful to our Board of Directors for their invaluable guidance and counsel.

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Adnan Kazim

Chairman

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EXECUTIVE DIRECTOR’S MESSAGE

Executive Director’s Message

2021 has turned out to be an extraordinary year. I am enormously proud of the resilient performance the team delivered, and the strong progress we have made across all our various residential and commercial projects.

Mohamed Ali Alabbar Executive Director

Dear Shareholders,

Our Rulers and the Government have shown great foresight and perseverance in tackling the fight against the pandemic, giving all of the UAE’s citizens and residents a chance to navigate successfully to where we are today, with minimal restrictions and maximum vaccinations. Even though we must all be vigilant still, their early decisiveness gave us all the ability to return to a sense of normalcy today, living life as routinely as possible. This was essential not only for our healths, but for the continued development of the dream called the United Arab Emirates.

To our employees and shareholders, your tireless efforts and trust amid the challenges of COVID-19 while executing our strategic initiatives helped Emaar to overcome unprecedented global turbulence and fortified our foundations for sustained growth in the years ahead. Thank you for supporting us during this demanding period.

Consolidated Performance

for 2021

Our record performance for 2021 comes despite the ongoing global impact of Covid-19. In fact, 2021 has turned out to be an extraordinary year. I am enormously proud of the resilient performance the team delivered, and the strong progress we have made across all our various residential projects. Building on this, we are well on track on executing our strategic pillars as spelt out later in this annual report (page 36), exploiting our strengths in masterplan-based development, operational excellence, attaining ESG distinction and investing behind our already deep pipeline for the future.

Our consolidated revenue for the year grew by 60% YoY, posting the highest ever revenue registered by the Group, recording a solid consolidated revenue of AED 15.602 billion (US$ 4.248 billion). This unprecedented performance was attributable to a strong revival of the real

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estate market, giving a positive impact across all our various projects within the UAE.

increased by 96% in 2021 to AED 3.244 billion (US$ 883 million), as compared to AED 1.657 billion (US$ 451 million) in 2020. During 2021, Emaar Development PJSC achieved its highest ever property sales with an increase of 335% to AED 27.440 billion (US$ 7.471 billion) (inclusive of sales related to non-

Our consolidated EBITDA increased by 89% on the back of record revenues and prudent cost control. The consolidated net profit of Emaar Development

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EXECUTIVE DIRECTOR’S MESSAGE

Executive Director’s Message

consolidated JVs & JDA) compared to 2020, propelled by strong rebound in the real estate market in Dubai.

ESG (Environment Society Governance) and aligning to SDGs (Sustainable Development Goals)

In 2021, we took initial steps to establish our Sustainability Strategy. This will include establishing a strategy for reducing embodied carbon and external commitments; developing the action plan for further reducing operational carbon; exploring greater use of recycled materials and alternatives; and strengthening our governance framework to prioritise and monitor ESG. We also intend to work towards being net zero carbon, in line with UAE’s Net Zero 2050 strategic initiative making the Emirates the first MENA nation to do so, and to support local communities on the key issues they face. Moreover, the UAE became the first OPEC country to announce a net zero goal at the COP26, the 26th United Nations Climate Change Conference in Glasgow held last year. As a major realty player within the region, Emaar is keen to contribute towards the nation’s stated net zero goals.

We recognise the opportunity to advance sustainability and this year’s integrated annual report demonstrates our dedication to the important objectives embodied in the SDGs.

In the meantime, we have crossed several initial milestones in our drive for ESG distinction as mentioned in our first Sustainability Report published for 2020. We are also championing responsible employment, promoting diversity and inclusion, and Integrating wellbeing within our workforce (see our chapter on Our People page 58). I am sure that in the coming years, we shall make creditable strides in our various ESG metrics and carbon reduction goals.

As a large format, masterplan-based city developer, we have a responsibility to contribute to the development of the UAE and have a significant role to play in the achievement of the Sustainable Development Goals (SDGs). At Emaar Developments, we recognise the opportunity to advance the SDGs and this year’s integrated annual report demonstrates our dedication to the important objectives embodied in the SDGs. (See our Key SDGs that we are aligned in line with the most material aspects of interest to stakeholders - page 50.)

Operational Excellence

Operational excellence is a key pillar behind our success. In 2021, given the extenuating circumstances surrounding the pandemic, this was particularly true. We have worked well to operate our businesses efficiently and smoothly, with strong market insights that helped us in driving enduring demand for our space. Our expertise across asset management and sustainability enabled us to navigate a challenging year and pursue growth and value opportunities. Our excellent financial performance is evidence of this business outcome. Much credit needs to be given to our highly experienced workforce, working with strong systems, expertise and passion. They have done a top-notch job in proactively managing the construction, sale and maintenance of our properties for the long-term success of our organisation. I invite you to read more about our Operational Excellence as a Strategic Pillar of Emaar on Page 42.

I am confident of Emaar’s financial position to sustain strong revenue, profitability, and shareholders’ return for the foreseeable future.

Outlook

as well as the Group’s approach to portfolio optimisation. Today, Emaar has a substantial development pipeline and land bank in Dubai, which leaves us well-positioned to successfully deliver attractive, sustainable returns for all stakeholders. With a resilient revenue backlog from property sales of AED 28.616 billion (US$ 7.791 billion), (inclusive of sales related to non-consolidated JVs & JDA), Emaar Developments has strong revenue visibility. I am confident of your Group’s financial position to sustain strong revenue, profitability, and shareholders’ return for the foreseeable future.

While regional global conflicts and oil prices volatility are a cause for concern with their impact on global growth, we remain optimistic about the medium and long-term business prospects of our Group. We are encouraged by the strong rebound we are seeing in demand for property sales which are now in line with pre-pandemic levels. Although it is early days, economic indicators are positive, and we are hopeful that we are starting to emerge from the pandemic with the worst behind us. With a clear roadmap, confidence has strengthened and the UAE economic forecasts for calendar 2022 looks promising.

Closing

However, we are very mindful that the trajectory for this pandemic is highly uncertain with risk from future variants. We will also need to be watchful for the global fallout from the ensuing Eastern European conflict and soaring oil prices. Therefore, we take comfort from knowing that we are protected by the strength of our balance sheet and our resilient performance during 2021. Our portfolio of prime, highly sustainable assets is set to continue to benefit from the fundamental shifts occurring within the real estate market

In closing I would like to underscore that, going forward, the way we think about sustainability and ESG has to change fundamentally. For us, it must become part of our normal business process. This means ensuring that every decision taken by each of us at Emaar every day is environmentally and socially intelligent, as well as making sound financial sense.

We look forward to engaging with all our

stakeholders in this journey and do not hesitate to contact any of us should you have suggestions, questions, comments or ideas you wish to share.

Sincerely,

Mohamed Ali Alabbar Executive Director

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EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021
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Section 1 Who we are 12 - 17 Highlights 12 Group overview 14 Group structure 16 EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021

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HIGHLIGHTS
Highlights
Financial Environment Society Governance
Sustainability
47% 6.8%
Report
YoY growth in Return on equity attributable decrease in CO2 emissions from Electricity Published our first Sustainability Report
to owners of the group Consumption for 2020
The Emaar Foundation
Multiple initiatives for fulfilling our Corporate Social
Responsibility (CSR) (read page 65) Integrated
Report
Published our first Integrated Report for 2021
1.53%
98%
decrease in CO2 emissions from Cooling
YoY growth in Earnings per Share
Risk
Management
~29 %
Strong Risk Management Framework
Female share of total workforce (read Risk Management on page 82)
Corporate
59% 63.4%
Governance
YoY growth in Market Capitalisation, which Waste Segragation achieved
reached c. AED 17.5 Bn as on Strong Corporate Governance Framework
31st December 2021 (read Corporate Governance Report
on pages 84-113)
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OUR BUSINESS

Group Overview

Emaar Development PJSC provides property development and development management services in the United Arab Emirates. The Group sells residential and commercial units, and plots of land. It also buys, sells, and devSelops real estate; engages in leasing and management of self-owned properties; and invests in commercial enterprises and management.

Emaar Development PJSC (DFM:EMAARDEV) is one of the world’s most valuable and admired lifestyle developers. We create value through property development and have a market capitalisation of approximately ~AED 17.5 billion.[(31st Dec. 2021)]

The Group was formerly known as Emaar Development LLC, a limited liability group. Subsequently, the incorporation of Emaar Development PJSC (the “Group”) as a Public Joint Stock Group was approved by the Securities and Commodities Authority in 2017 and is based in Dubai, the United Arab Emirates. The Group, a UAE based buildto-sell property development business, is a majority owned subsidiary of Emaar Properties PJSC, a diversified player in residential, commercial, retail and hospitality assets across UAE and key international markets.

At Emaar Development, our Corporate Purpose is to be the most admired realty group globally, that transforms the lives of its occupiers. Sustainability is a key driver in our commitment to creating the best communities for people to live, work, and play.

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O B J E C T I V E
CREATOR OF STRONG REVENUE
WORLD-RENOWNED PROVEN EXECUTION VISIBILITY
ARCHITECTURES
BURJ KHALIFA > 52,000 units AED 28.6 Bn
Tallest building in more than 52,000 residential units delivered in Dubai Robust revenue backlog
the world since inception from property sales
THE DUBAI MALL
24,500 UNITS
Most visited mall in
Residential units
the world
currently under
development in the UAE
THE DUBAI
FOUNTAIN
World’s tallest ~280 MN SQ. FT.
choreographed musical
fountain Land Bank (GLA)
(Inclusive of numbers
related to non-
consolidated JVs & JDA)
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GROUP STRUCTURE

Group Structure

100% CONSOLIDATED ENTITIES[^]

EMAAR ENTERTAINMENT (100%)DUBAI HILLS ESTATE (50%)

MINA RASHID (100%)*

Partnership between Emaar and Meraas Holding to create a mixed-use development with a series of unique neighbourhoods set around an 18 hole championship golf course.

Partnership between Emaar and Mina Rashid Properties LLC to develop Mina Rashid land into a mixed-use community as per the masterplan. It will be known as the world’s new sailing destination.

*30% of profit is shared with partner as management fee

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^Major entities considered

DUBAI CREEK HARBOUR

Development Agreement betwen Emaar and Dubai Holding for the development of an iconic mixed-use waterfront project situated on the banks of the historic Dubai Creek.

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^Major entities considered

JVs / JDAs[^] WITH 50% SHARE

EMAAR SOUTH

Joint Venture between Emaar and Dubai Aviation City Corporation that is part of 145 sqkm smart city set to become a pivotal hub in the global economy, located within Emirates’ urban flagship project, Dubai South.

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ZABEEL SQUARE

Joint Venture between Emaar and Meraas to create a mixed-use development near Zabeel Park, Dubai

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Section 2 Our Priorities & Strategies 18 - 51 Our business model 18 How we create value 22 Materiality report 24 Strategic pillar 1: Forefront of shaping cities 36 Strategic pillar 2: Creating the best places 40 Strategic pillar 3: Operational excellence 42 Strategic pillar 4: Strong future pipeline 44 Strategic pillar 5: Attaining ESG distinction 46 Our environmental and social outcomes 50 EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021

EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021

OUR BUSINESS MODEL

Our Business Model

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We have more than 20 years of experience in creating large scale mixed use urban districts which has enabled us to deepen our expertise to become a leading urbanisation specialist. This has been the underlying foundation of the strong growth of our asset portfolio. Today, we have unlocked value across geographies through our urbanisation method, comprising a portfolio of ~115 major projects across the UAE. These locations are

inherently more resilient through property cycles; can attract global capital; and are well suited to urban regeneration and infrastructure building - all of which play to our strengths.

We utilise our capital on projects and assets which best leverage our competitive strengths. Few can match our ability to deliver large scale urbanisation projects through our proven business model, our financial strength, and strong credentials.

Assets we prefer to build and sell

COMMERCIAL

RESIDENTIAL

Develop and sell commercial properties in the UAE:

Develop and sell residential assets in the UAE:

• Profound understanding of the UAE’s urban markets and its consumers

• Sound execution of our projects in important districts of a city

• Producing the highest standards of quality, efficiency, and space flexibility

• Leveraging our land banks with established and new masterplans that are flourishing

• Creating exceptional commercial assets

• Creating exceptional residential assets with strong cash flows and profitability

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OUR BUSINESS MODEL

Our Business Model

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Building Exciting Places

We capitalise on creating premier integrated lifestyle communities centred around iconic assets to generate growth and value creation

The quality of our assets and desirable communities in which they exist in build long-term value for our customers. (See our Strategic Pillar 1: Forefront of Shaping Cities on page 36 to know more.)

We are the largest masterplan developer in UAE, having transformed Dubai’s landscape and contributed to the overall success the city has achieved to date. We focus on opportunities where we can leverage our well-honed experience to create value by developing new properties for long term investment, while ensuring superior design and architecture of our assets.

We focus on executing projects with precision and discipline, producing the highest quality in the marketplace. We leverage our deep understanding of the UAE’s urban market, to make opportune decisions which aim to deliver sustainable growth and returns.

We do this by developing integrated masterplans that create and add entire districts to a city, intrinsically shaping the city’s economy and the way people live work and play. These neighbourhoods are typically surrounded by iconic landmark assets that create a centrifugal pull on their own, making the whole area one of the city’s most exciting quarters - a ‘city within a city’. This ensures strong aspirational value for the Emaar franchise, driving sustained demand for its developments.

While our development pipeline is expected to be the main source of growth for our build-to-sell portfolio, we will also openly explore other growth opportunities that leverage our abilities to add value.

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Being Customer Centric

Even after we selling our properties, our group actively manages communities to ensure high quality experiences for our customers

our ideas on sustainability and urban regeneration, have helped us achieve our aim to be one of the world leading urbanisation specialists of choice.

Once our assets are created, we focus on driving customer experience by managing our assets ourselves. We focus on capitalising on client relationships, ensuring our spaces are ideally suited to meet the needs of all our customers.

Even during times of turmoil and disruptions, there is a general tendency for capital to flock towards quality, and Emaar Development benefits immensely from its reputational leadership.

We source forward thinking and proven businesses and cater to their growth cycle by matching their evolving needs flexibly.

The success and vibrancy of our completed precincts is testament to our capability. This demonstrated track record of superior outcomes for making places people want to be in, along with

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Maintaining Capital Efficiency

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We manage our capital efficiently by maintaining a capex-light approach to developing our projects

An important component of our efficiency strategy is the capital efficient land management model where land is either typically acquired on a long-term payment plan or is acquired through an ‘asset light’ Joint Venture (JV) model in which the JV partner contributes the land with profit sharing as consideration. We maintain asset light model which requires minimal equity or debt capital in pursuing the development and sale of our projects. We access prime land banks in the UAE through JVs or Joint Development Agreements (JDAs) with Government Related Entities (GREs), the Government, and major owners of land banks. As prime examples, our existing JVs and JDAs with leading GREs include Dubai Holding, Dubai Aviation City Corporation, and P&O Marinas. This approach requires minimum upfront cash for land acquisition, allowing Emaar Development to focus on its core areas of value addition and optimising the return on capital that it deploys.

Similarly, we do not start the development phase of a project unless a significant volume of advances is collected in our sales cycle. As a result, a sizeable part of construction cost is funded through pre-sales: on average, 60%-70% of units are pre-sold and 20%-30% cash collection in sold projects is achieved by the time construction begins. Typically, around 90% of projects are sold off-plan, while construction ensues and reaches the completion stage.

The Group typically does not expect the minimal default rates to exceed 2% of sales value, especially, as per the law, up to 40% of the sales value can potentially be forfeited and the property can be resold. These ‘capital light’ strategies are designed to keep the Group’s capex levels low, allowing it to maintain a healthy balance sheet that can withstand market cycles.

Attaining ESG Excellence

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We are actively enhancing our ESG focus to be a highly responsible and sustainable business

We develop individual buildings to drive returns across our urban districts and going forward, we mean to ensure that our developments will become net zero carbon in the foreseeable decades ahead. We are committed to becoming a strong practitioner of sustainability strategies, supported by improved ratings, benchmarks and certifications. We also plan to join commitment initiatives that will align us with UAE’s Net Zero 2050 strategic initiative.

Our strategies are supported by a strong risk management and governance framework, which requires robust safety, quality and sustainability standards, and a structured approach to capital allocation. Even though we see the glimmer of light past a post pandemic phase, we continue to place strong importance to business resilience, which will be critical to navigate the uncertainty that may persist for some time. Our urbanisation led strategy, with a wide range of properties catering to a variety of customer classes, is uniquely placed to adapt to prevailing market conditions.

In parallel, we are striving for excellence in our corporate governance and disclosures and are committed to attaining widespread recognition for world-class governance.

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EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021 21

20 EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

HOW WE CREATE VALUE

How we create value

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OUR RESOURCES OUR BUSINESS MODEL & CORE ACTIVITIES
Natural Capital Our Strategic Pillars Our Key Focus Areas
Committed to be kind to planet Earth:
Excellence in energy efficiency and waste
management (see page 60 on Our Focus Area 5:
Sustainability)
Proactively working towards minimising our
environmental footprint
Manufactured / Intellectual Capital
ATTAINING BUILDING
Building exciting spaces
ESG EXCITING
~280 Mn sq ft of GLA
EXCELLENCE PLACES
~24,500 units under construction to be
delivered in next 4 years Marketproperties& Sellto
aspiring customers
- Attention to Product Safety & Quality
- Operating systems and processes
- Strong brand Prioritising
-- RobustActive assetCorporatemanagementGovernance Sustainability Land& JointAcquisitionsVentures
- Portfolio management
OUR
Relationship Capital CUSTOMERS
Serving our important stakeholders:
Development
of Homes &
- Understanding our customers well Commercial Optimise
- Extensive engagement with investors Places Customer
- Legislative and regulatory compliance Relationships
- Supporting the community Community
Management
MAINTAINING BEING
Human Capital CAPITAL CUSTOMER
Building capacity and capabilities:
EFFICIENCY CENTRIC
~300 employees
Integrated professional management
- Zero tolerance on Health and Safety
- Experienced leadership team
- Values-driven Board of Directors
Financial Capital
An efficient value creation engine:
- AED 16,415 mn Net Assets of the Group
- Strong access to capital (debt and equity)
- Negative Net Debt / EBITDA in 2021
- AED 4,389 mn EBITDA up by 89% YoY Aligned to key UN SDGs (See page 50 for our SDG mapping)
- AED 3,244 mn Profit after Tax, up 96% YoY
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Since our inception, we have demonstrated an enviable track-record for delivering long- term value for our stakeholders. Today, with ample talent, assets and capital, we are confident to continue this journey of value creation for decades ahead.

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DELIVERING FOR OUR VALUE CREATION
OUR STAKEHOLDERS
Customers
We serve our customers through dedicated
care executives to create great enriching and Technology for integrated experience
consistent customer experiences. We do this APPs access to Emaar’s Eco System
through personal interactions, self service TAT fast Turn around Times
apps and other touch points. With fast turn- >95% target customer satisfaction
around time to queries, we strive to maintain
CSAT score
optimal Customer Satisfaction scores.
Our People
Our open and inclusive workforce are given
the best working environment and training to
achieve their best potential. Our people come ~ 300 employees
with both local and global backgrounds, Zero major incidents in UAE
outlooks and experiences, helping the Group
become one of most respected companies in
the world.
Shareholders
We respect the rights of our shareholders
and actively manage our business and 22% Return On Equity
finances to ensure that our business is AED 0.81 EPS for 2021
sufficiently resilient to deliver sustained 59% Growth in Market Capitalisation
long term returns to our shareowners. over 2021
Partners and suppliers Awarded ~AED 3.6 Bn worth of
We establish deep relationships projects to various vendors and
with our vendors, partners, debt providers, partners in 2021 in the UAE
authorities and regulators. >500 active suppliers
>80% business through local partners
SME vendor focus
Sustainability through supply chain
Communities
We make constant efforts to connect with
local people, create opportunities for The Emaar Foundation -
underserved members of our society multiple Corporate Social
and support general wellbeing and Responsibility initiatives
lifestyles to make a positive local ~29% of total employees are women
contribution.
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22 EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021 23

MATERIALITY REPORT

At Emaar, we recognise the opportunity to advance the SDGs and this year’s integrated annual report demonstrates our dedication to the important objectives embodied in the SDGs.

Materiality Report

KNOWING WHAT MATTERS MOST TO STAKEHOLDERS OF EMAAR GROUP

A sustainable business is about improving the quality of our portfolio by creating resilient assets that operate optimally, while reducing risks and maintaining value over the long-term. Through internal and external communications, EMAAR Group continues to demonstrate that we are aware of key drivers for sustainability performance. We are continuously working towards improving our performance by implementing key initiatives within our sustainable business roadmap. Going forward, we plan to raise further awareness throughout the organisation and among our stakeholders on EMAAR Group’s objectives and progress.

Emaar conducts materiality surveys periodically to understand the aspects that are most significant and relevant to our business. Material aspects are defined as per Sustainability Accounting Standards Board (SASB) guidelines, and are identified through a materiality assessment process to discover those being of the highest importance to both internal and external stakeholders.

To manage risk effectively and to operate with the support of our stakeholders, we need to understand the issues that matter.In determining these issues, we considered how important they were to stakeholders and how significant they were in terms of EMAAR Group’s economic, environmental, and social impacts. This assessment considers a series of relevant issues determined from international reporting requirements including GRI and SASB; and comparing our approach with that of peers within the same industry as Emaar’s. We then classified these issues (as ‘somewhat material; ‘material’; and ‘highly material’) to indicate their

importance to EMAAR Group’s internal and external stakeholders. The survey participants were invited to be canvassed for their knowledge of our business; the industry we participate in; and their understanding of the interplay between our industry and socio-environmental factors at large. The internal respondents included people from investor relations, central procurement, finance, facility and community management, human resource functions, as well as senior employees and management leaders within the EMAAR Group, including EMAAR Properties PJSC and EMAAR Developments PJSC. The external respondents included investors, vendors, partners and contractors among others that engage with Emaar and are therefore somewhat familiar with the Group’s business. The aspects we have identified as material are shown in the materiality mapping graphics below. This matrix represents the positioning of the aspects in terms of ‘importance to stakeholders’, in line with feedback gathered.

24 EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021 25

MATERIALITY REPORT

Materiality Report

Materiality Map

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14
20
28
19
18
8 12
36
33
17 32 29
15 3
37 26
23 27 342238 6 4 11
10 24
35
30 40
9 1
31
21 39
16
41
5
42 13
2
43 7
Somewhat Material Material Highly Material
Internal Stakeholders
External Stakeholders
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conducted from time to time from key external stakeholders including investors, analysts, and other relevant groups. Our response to high material aspects are detailed on pages 24-35 under “Materiality Report”.

A matter is considered material if senior management and those charged with governance believe it could significantly impact the value created and delivered in the short, medium and long term. Furthermore, we capture feedback through engagement and research

Materiality Radar Map

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INTERNAL
EXTERNAL
1
43 2
42 100 3
41 4
90
40 5
80
39 6
70
38 7
60
37 8
50
36 40 9
30
35 10
20
34 10 11
0
33 12
32 13
31 14
30 15
29 16
28 17
27 18
26 19
25 20
24 23 22 21
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The Materiality Radar shown above by the management, in particular where presents the results of our materiality they appear to be more important to survey findings in an alternative way. external stakeholders than they are to The orange and grey lines show the the business. We intend to refine our internal and externalstakeholders’ materiality assessment process each year views respectively and demonstrate as it becomes more mature and welcome the extent to which they are alignedon continuous quantitative and qualitative each aspect surveyed. We see from feedback from our stakeholders. this graphics that the views of external stakeholders broadly align with our own business view. Areas where there is some divergence required to be studied further

26 EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021 27

MATERIALITY REPORT

Materiality Report

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Materiality by importance Highly Material Material Somewhat Material
In order of materiality (Highly Material to Somewhat Material)
Issue # Material Aspect
3 ENVIRONMENT: Energy Management
8 ENVIRONMENT: Environment Compliance
11 SOCIAL CAPITAL: Customer Privacy
12 SOCIAL CAPITAL: Data Security
14 SOCIAL CAPITAL: Product Quality & Safety
18 HUMAN CAPITAL: Labour Practice & Employment
19 HUMAN CAPITAL: Training and Skill Development
20 HUMAN CAPITAL: Employee Health & Safety
28 BUSINESS MODEL & INNOVATION: Long Term management of Assets
29 LEADERSHIP & GOVERNANCE: Business Ethics, Integrity, Transparency, Bribery & Corruption
33 LEADERSHIP & GOVERNANCE: Risk Management
36 LEADERSHIP & GOVERNANCE: Reputation, Communications and Awareness
38 ECONOMY: Economic/financial crises
1 ENVIRONMENT: Climate Change Mitigation & Adoption
2 ENVIRONMENT: Air Pollution Control & Toxic Emission Management
4 ENVIRONMENT: Water Management
5 ENVIRONMENT: Effluent/Waste Water Management
6 ENVIRONMENT: Waste Management
9 ENVIRONMENT: Natural Resources Conservation (soil, air and water)
10 SOCIAL CAPITAL: Human Rights
15 SOCIAL CAPITAL: Customer Welfare
17 SOCIAL CAPITAL: Social Development & Community Involvement
21 HUMAN CAPITAL: Staff Succession Planning
22 HUMAN CAPITAL: Employee Engagement, Diversity & Inclusion
23 BUSINESS MODEL & INNOVATION: Product Design & Lifecycle Management
24 BUSINESS MODEL & INNOVATION: Business Model Resilience
26 BUSINESS MODEL & INNOVATION: Supply Chain Management
27 BUSINESS MODEL & INNOVATION: Material Sourcing Efficiency - availability, responsible sourcing & pricing
31 LEADERSHIP & GOVERNANCE: Competitive Behaviour
32 LEADERSHIP & GOVERNANCE: Management of the Legal & Regulatory Environment
34 LEADERSHIP & GOVERNANCE: Grievance Redressal of Stakeholders
35 LEADERSHIP & GOVERNANCE: Responsible investment
37 ECONOMY: Commodity price volatility
39 ECONOMY: Economic/Pandemic Crises
40 ECONOMY: Capital Values
7 ENVIRONMENT: Biodiversity Management
13 SOCIAL CAPITAL: Access & Affordability
16 SOCIAL CAPITAL: Charitable Giving
25 BUSINESS MODEL & INNOVATION: Access to Capital (customers & business)
41 ECONOMY: Employment trends/diversification
42 ECONOMY: Revenue Account surplus
43 ECONOMY: Political change and uncertainty
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Our approach to Material Aspects through references within our Integrated Report

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Issue # ENVIRONMENT related Material Aspects: Where to read more:
1 Climate Change Mitigation & Adoption Focus Area 5: Sustainability (page 60)
2 Air Pollution Control & Toxic Emission Management Focus Area 5: Sustainability (page 60)
3 Energy Management Focus Area 5: Sustainability (page 60)
4 Water Management Focus Area 5: Sustainability (page 60)
5 Effluent/Waste Water Management Focus Area 5: Sustainability (page 60)
6 Waste Management Focus Area 5: Sustainability (page 60)
7 Biodiversity Management Focus Area 5: Sustainability (page 60)
8 Environment Compliance Focus Area 5: Sustainability (page 60)
9 Natural Resources Conservation (soil, air and water) Focus Area 5: Sustainability (page 60)
SOCIAL CAPITAL related Material Aspects: Where to read more:
10 Human Rights Visit our website www.emaar.com
11 Customer Privacy Focus area 3: Our Customers (page 56)
12 Data Security Corporate Governance Report (page 84)
13 Access & Affordability Strategic Pillar 1: Forefront of shaping cities (page 36)
14 Product Quality & Safety Focus area 3: Our Customers (page 56)
15 Customer Welfare Focus area 3: Our Customers (page 56)
16 Charitable Giving Focus Area 5: Sustainability (page 60)
17 Social Development & Community Involvement Focus Area 5: Sustainability (page 60)
HUMAN CAPITAL related Material Aspects: Where to read more:
18 Labour Practice & Employment Focus area 4: Our People (page 58)
19 Training and Skill Development Focus area 4: Our People (page 58)
20 Employee Health & Safety Focus area 1: Health and Safety (page 52)
21 Staff Succession Planning Focus area 4: Our People (page 58)
22 Employee Engagement, Diversity & Inclusion Focus area 4: Our People (page 58)
BUSINESS MODEL & INNOVATION related Material Aspects: Where to read more::
23 Product Design & Lifecycle Management Strategic Pillar 2: Creating the best places (page 40)
24 Business Model Resilience Our Business Model (page 18)
25 Access to Capital (customers & business) Focus Area 2: Financial capital (page 54)
26 Supply Chain Management Strategic Pillar 3: Operational excellence (page 42)
27 Material Sourcing Efficiency - availability & responsible sourcing Strategic Pillar 3: Operational excellence (page 42)
28 Long Term management of Assets Strategic Pillar 3: Operational excellence (page 42)
LEADERSHIP & GOVERNANCE related Material Aspects: Where to read more:
29 Business Ethics, Integrity, Transparency, Bribery & Corruption Corporate Governance Report (page 84)
31 Competitive Behaviour Our Business Model (page 18)
32 Management of the Legal & Regulatory Environment Corporate Governance Report (page 84)
33 Risk Management Risk Management (page 82)
34 Grievance Redressal of Stakeholders Investor Relations pages on website
35 Responsible investment Focus area 2: Financial Capital (page 54)
36 Reputation, Communications and Awareness Focus area 3: Our Customers (page 56)
ECONOMY related Material Aspects: Where to read more:
37 Commodity price volatility Strategic Pillar 3: Operational excellence (page 42)
38 Economic/financial crises Management Discussion & Analysis (page 66)
39 Economic/Pandemic Crises Management Discussion & Analysis (page 66)
40 Capital Values Management Discussion & Analysis (page 66)
41 Employment trends/diversification Management Discussion & Analysis (page 66)
42 Revenue Account surplus How we create value (page 22)
43 Political change and uncertainty Management Discussion & Analysis (page 66)
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28 EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

29

EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

MATERIALITY REPORT

Materiality Report

Our response to Material Issues categorised as High

Issue #	Top material issues	How we are responding	Supporting SDGs		Issue #	Top material issues	How we are responding	Supporting SDGs
3 8	ENVIRONMENT: Energy Management ENVIRONMENT: Environment Compliance	In order to improve the quality of life, through the created supply of living and working spaces, Emaar is contributing to the construction of sustainable master-planned cities and communities, which is why SDG 6, 7, 11 and 15 are pertinent goals. Emaar takes measures to protect the natural and cultural heritage, so as to ensure the access of all to the green and pollution safe public spaces, along with clean water and sanitation, such as: designing new buildings respecting the architectural style of old buildings, avoiding the use of agricultural land for new constructions, creating green terraces in the urban environment, embedding access to clean water and planning a high ratio of green parks and landscapes as key features of our masterplans. As the UAE steps up on its national commitment to climate action, Emaar is taking tangible steps towards reducing its carbon emissions and reliance on fossil fuel. Te Group is currently evaluating the goals it wishes to set for minimizing its carbon footprint in due course. To achieve a meaningful goal, the Group is exploring multiple avenues, including investing in energy, among others. For its green building initiative, Emaar is planning to have its various buildings LEED certifed in due course. Moving forward, the Group plans to push the envelope in innovative building designs, and sustainable construction technologies and materials, to enhance its developments’ resilience against climate change. Using advanced building energy management systems, Emaar continues to monitor the energy efciency in its various commercial, shopping, residential and other buildings for reducing energy consumption and improving thermal comfort and health. Te Group also deploys holistic building management systems that also check air and water. For Emaar, sustainability goals and COVID-19 safety precautions have become equally important to lowering utility usage. Te Group deploys various platforms for managing and optimising air quality and water use across its various properties. Emaar also places immense importance to on-site waste segregation as the frst step in its compliant waste management plan that can help the environment. Among various initiatives, the Group adopts protocols across its various properties to encourage employees, occupiers, shoppers, residents, and community members to recycle on a regular basis whenever possible, and separate out recyclable waste such as paper, plastic and glass from landfll and compostable waste. Te Group also sets qualitative and quantitative targets for its initiatives in sustainable development, for example in the areas of increasing the number of certifed buildings, charging access for e-vehicles, number of parking places for bicycles among others. It also focusses on creating smart cities, working spaces and homes, ensuring urban balance and harmony with nature.	Pillar 5: Attaining ESG distinction See Page 46 See our Sustainability Report on page 60 for more details on our initiatives. 5		11 12 14 17	SOCIAL CAPITAL: Customer Privacy SOCIAL CAPITAL: Data Security SOCIAL CAPITAL: Product Quality & Safety SOCIAL CAPITAL: Social Development & Community Involvement	Te recently carried out materiality survey identifed Customer Privacy and Data Security amongst the ‘Highly Material’ issues. Emaar’s Information Systems department constantly scans for cyber security trends to ensure that cyber risks are mitigated efectively. Te Group is also mindful of its obligation to regulatory compliance with personal data protection guidelines. Emaar’s holistic approach encompassing the whole organisation and robust IT security measures also enhances its market standing. Te Group’s IT response plans are being tested by independent external and internal auditors and benchmarked against best industry practices. Failure to meet customers’ expectation on quality and responsibility can afect reputation and sales. Emaar prioritises innovative, green and safe designs, with high standards of workmanship and functionality, by voluntarily adopting various construction quality standards. For quality assurance, the Group targets to rectify defects reported at new developments within prescribed time limits and at the same time learning gained on one project is used to improve quality of another project. Te Group’s stringent quality assurance processes are benchmarked against all industry standards. Its robust evaluation of partners ensures its internal quality KPIs are maintained or exceeded. Tis has diferentiated Emaar’s products and enhanced stakeholders’ confdence in the Group. We shape the quality of our assets and urban environment to deliver the highest quality of properties and spaces for our consumers. Our key strategy to drive our business forward is to establish and develop outstanding urban centres and neighbourhoods which deliver positive outcomes for all our stakeholders on a long term, sustainable basis. Our masterplans ensure that we produce well-connected, high quality environments fostering innovation, collaboration, creativity, and a genuine sense of community. To know more, read the Group’s Strategic Pillar 1: Forefront of Shaping Cities (page 36); and the chapters on its capitals, mainly Our Customers (page 56) and Our People (page 58).	Pillar 2: Creating the best places See Page 40 2

31

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MATERIALITY REPORT

Materiality Report

Issue #	Top material issues	How we are responding	Supporting SDGs
11 12 19	HUMAN CAPITAL: Labour Practice & Employment HUMAN CAPITAL: Employee Health & Safety (H&S) HUMAN CAPITAL: Training and Skill Development	Emaar focuses on human capital development and growth, and empowers employees to be innovative. Tis helps to drive service and product diferentiation. Professional ethos, skill sets and performance of its people are key to the Group’s performance and fnancial sustainability. Te Group believes in building engaging careers where employees can grow with the group. Its Human Resource policies and practices foster an inclusive and supportive workplace for employees' development and well- being to drive dedication, productivity and performance for organisational excellence and business growth. As a developer and major landlord with extensive operations, the Group is exposed to environmental, health and safety (EHS) risks arising from its activities. It has put in place strategic and concerted eforts to mitigate the impacts on the environment and on the health and safety of its key stakeholders. In 2021, there was zero fatality involving our employees across our core operations. As a strong advocate of safety and health across its value chain, various safety initiatives and engagement programmes that helped ensure zero fatality, and were implemented at all construction sites in 2021. In 2021, Emaar clocked more than 16,300 hours in training and development. Emaar’s progress on Health & Safety goals and targets across its operations is reported on page 52. More details on Emaar’s HR policies and practices, including Human Rights, Remuneration, Talent Development and Retention, can be found on https://www.emaar.com/en/ and in the chapter covering Focus Area 4: Our People on page 58	Pillar 5: Attaining ESG distinction See Page 46 4

Issue #	Top material issues	How we are responding	Supporting SDGs
28	BUSINESS MODEL & INNOVATION: Long Term management of Assets	We operate our businesses efciently and smoothly, with strong market insights that help us in driving enduring demand for our assets and developments. We proactively manage our properties and infrastructure to keep our facilities up and running efciently, for the long-term success of our organisation.
		To know more, read the chapters on: Pillar 3: Operational excellence (page 42); Our Business Model (page 18); and How we create value (page 22).

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MATERIALITY REPORT

Materiality Report

Issue #	Top material issues	How we are responding	Supporting SDGs
29 33 36	LEADERSHIP & GOVERNANCE: Business Ethics, Integrity, Transparency, Bribery & Corruption LEADERSHIP & GOVERNANCE: Risk Management LEADERSHIP & GOVERNANCE: Reputation, Communications and Awareness	Te Board and the Management are committed to conducting business with integrity and consistent with high standards of business ethics, and in compliance with all applicable laws and regulatory requirements. Te Group has established various corporate policies as necessary which provide a communicable and understandable framework for staf to observe the Group’s principles on honesty, integrity, responsibility, and accountability at all levels of the organisation and in the conduct of the Group’s business in their relationships with the Group’s stakeholders, including customers, suppliers and employees. To know more, read the chapter on Corporate Governance Report (pages 84- 113). Te Group has a system of controls in place to maintain an acceptable balance between the cost of risks occurring and the cost of managing the risks. Te management continually monitors the Group’s risk management process to ensure that an appropriate balance between risk and control is achieved. Risk management policies and systems are reviewed regularly to refect changes in market conditions and the Group’s activities. Read more on our Risk Management Framework (page 82). Understanding how customer expectations are changing helps us provide places which meet more of their needs, driving long term demand for our space. We survey retailers and visitors to our places and collect data on how people use our space and our services. We maintain an active dialogue with our partners and develop long term relationships. Our Supplier Code of Conduct guides how we engage with suppliers. We engage with our people to help them realise their potential. It is their skills and experience that drive the quality of our product. By addressing shareholders’ views in our strategy and our communications we are better able to attract investors who are long term supporters of our business.	Pillar 5: Attaining ESG distinction See Page 46 5

Issue #	Top material issues	How we are responding	Supporting SDGs
38	ECONOMY:	Te global economic climate presents risks and opportunities	Pillar 5: Attaining ESG distinction See Page 46 5
	Economic/fnancial crises	which can impact both the delivery of our strategy and our fnancial performance. We have made a beginning in integrating ESG into all aspects of management, including investment decisions, fnancial models and business plans, investment
39	ECONOMY: Economic/Pandemic Crises	valuations, and monitoring business performance, which together with very disciplined fnancial management helps us weather any adverse economic condition. Te Risk Committee periodically reviews the economic environment in which we operate to assess whether changes to the economic outlook justify a reassessment of the risk appetite of the business. Key indicators including forecast GDP growth, employment rates, business and consumer confdence, interest rates and infation are considered, as well as central bank guidance and government policy updates. We monitor our business plans against a potential downturn in economic outlook to ensure our fnancial position is sufciently fexible and resilient. Our business model focuses on high quality assets underpinned by our strong balance sheet and fnancial strength. Read more on the Group’s Financial Capital on page 54. While the impact of Covid-19 continued to be felt in 2021 in the form of diferent variants, many of our customers have been unable to operate their businesses in the usual way. Troughout the pandemic, we worked closely with all those afected to agree fair and fexible plans to help them manage rental payments and we supported them in their reopening strategy wherever possible. For our ofce customers, we worked fast to make our space Covid-secure and share learning experiences with occupiers on working from home and returning to the ofce. Te Covid-19 pandemic has shone a spotlight on health and the importance of maintaining a good balance between work and life priorities. At Emaar, employee wellbeing has always been a focus, exploring new ways to support employees’physical and mental health. We have worked hard to create a culture of support and understanding for all our employees, ensuring they know where they can get the appropriate assistance, recognising all the difculties encountered during this pandemic. Read more on the Group’s Pandemic Response on page 52-53 on Health & Safety.

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EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021 35

OUR STRATEGIC PILLARS

Our properties are also inclusive places, which foster opportunities and contribute positively to their neighbourhoods.

Golf Links Villas at Emaar South

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1
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Pillar 1 Forefront of Shaping Cities

Our key strategy to drive our business forward is to establish and develop outstanding urban centres and neighbourhoods which deliver positive outcomes for all our stakeholders on a long term, sustainable basis.

Strategy

We create value by providing high quality iconic environments, which help our discerning customers to succeed today, and in the future. Our properties are also inclusive places, which foster opportunities and contribute positively to their neighbourhoods. We are executing on our well thought out integrated masterplans that create and add entire districts to a city, intrinsically shaping the city’s economy and the way people live work and play. These neighbourhoods are typically surrounded by iconic landmark assets that create a centrifugal pull on their own, making the whole area one of the city’s most exciting quarters - a ‘city within a city’. Our masterplans ensure that we produce well-connected, high quality environments fostering innovation, collaboration, creativity, and a genuine sense of community. Their strong appeal attract successful businesses, residents, shoppers and tourists, to foster centres of innovation, collaboration and creativity. Going forward, we intend to realise the full potential of our existing and new masterplans through the development of high quality and sustainable buildings, and by aligning our value proposition that will appeal to tomorrow’s businesses and workers.

Our masterplans offer enormous opportunity to increase biodiversity, by enhancing existing green and water body spaces. In Dubai alone, Emaar has created several open public spaces, landscaped terraces in many of its residential buildings, and green roofs on some of them.

Emaar South is a mixed-use neighbourhood offering a brand-new idea of miniature townhouses and regular townhouses. Standalone apartments and villas have views of a magnificent 18-hole championship golf course. Golf Links Villas at Emaar South is situated near the Dubai Expo 2020 site and includes various housing alternatives from townhouses to apartments. The neighbourhood offers several amenities to enable a fulfilling lifestyle.

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EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

OUR STRATEGIC PILLARS

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The evolution of Downtown Dubai over 18 years 600-acre Flagship Mega-Development One of the Most Visited Destinations in The World Includes The World’s Tallest Building & The World’s Largest Mall

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Dubai Creek Harbor

Home to the beautiful Island Park, the pristine Creek Beach, an upscale Yacht Club, and an exquisitely designed promenade with an array of art installations, retail, dining, and leisure venues. Every day, the public spaces at Dubai Creek Harbor provides an opportunity to discover something extraordinary.

We are continuously leveraging on the existing master community developments to launch new projects:

Masterplans Central Attractions Total Remains GFA (Million sq. ft.) to be launched in the future Dubai Creek Man made island and Dubai Creek Tower 100.9 Dubai Hills 18 hole world class Golf Course 51.9 Te Valley On Dubai-Al Ain Road, near Golden Beach and Sports Village 45.2 Emaar South 18 hole world class Golf Course 29.7 Mina Rashid World’s new sailing destination 11.3 Arabian Ranches Golf Course and Equestrian Club 8.1 Emaar Beachfront Close access to sought after Beach 6.7 Ras Al Khaimah & Zabeel Square Former is located at the top of Al Marjan Island ideal for 5 Star hotels; while the latter is located near Zabeel Park, Dubai, ideal for mixed-use cluster of assets 3.5 Downtown Dubai Burj Khalifa, Dubai Fountain, Dubai Mall 1.9 Details are based on current master plan as of 31 December 2021

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OUR STRATEGIC PILLARS

The Valley is a neighbourhood of elegant townhouses with stylish, family-friendly homes in a community-Wliving setting, connected to nature, and situated just footsteps away from Golden Beach.

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2

Pillar 2: Creating the best places

We are a trusted partner in delivering the best places that are well located, greener and offer best in class technology. In the current environment, flexibility has never been more relevant. Across our residences, offices, and our retail spaces, we offer our customers a range of options in terms of lease length and fit outs to meet their needs, both today and in the future, with the potential to expand with us.

Strategy

We apply our mastery to create spaces that people single out to spend their lifetime to live, play and work. We develop a deep understanding of the most important issues and opportunities in the communities around each of our masterplans, and focus our efforts collaboratively, to make the biggest impact at each place. We subscribe to empathetic architecture that not only stands out for its beauty, but also looks to optimise the relationship between people and buildings to attend a community’s needs. We design our buildings as solutions for problems and opportunities by focusing on the needs, contexts, behaviours, and emotions of people from all sections of society. This means that our spaces are intrinsically places for people to come together, and where connected spaces create an experience. A sense of place is created by the architectural designs of our buildings, enveloping the adjacent surroundings in a connected way. We design these surroundings to complement the built environment, placing top priority on extensive landscaping that sets the initial tone of a site.

Case Study: The Valley

The Valley is a quaint new town where life finds its inspiration amidst the vast shimmering sands and lush green open spaces. With open spaces and green pocket parks to pristine lawns and lush sikkas, The Valley offers a suburban utopia for families who seek an active, healthy and fulfilling lifestyle.

The project allows residents to live their best life where everything they need is right on their doorstep, including a host of outstanding amenities and exclusive features. They can enjoy an active lifestyle at the Sports Village consisting of sports courts, a playground and outdoor gym, bicycle and running tracks. Residents can feel peaceful at the zen-like Pavilion, or can opt for an afternoon at the nearby Golden Beach. Alternatively, young families can spend time playing at the Kids’ Dale. Apart from its stunning location and world-class amenities, resident have direct access to The Valley’s indoor & outdoor retail, a local farmers’ market and gourmet dining options.

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OUR STRATEGIC PILLARS

Case Studies

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3

Pillar 3: Operational excellence

We operate our businesses efficiently and smoothly, with strong market insights that help us in driving enduring demand for our space. Our expertise across asset development and sustainability enabled us to navigate a challenging year and pursue growth and value opportunities.

Strategy

We employ a highly experienced workforce, working with strong systems, expertise and passion. We proactively manage our properties and infrastructure to keep our facilities up and running efficiently, for the long-term success of our organisation. We implement a precisionbased approach towards corrective maintenance and customer requests, ensuring that we avert downstream equipment failures and equipment down time, thus extending the useful life of the asset. We place great importance on efficient cost management and value creation; strategic sourcing, energy efficiency and vendor management programmes; and maintaining high occupant and client satisfaction. We strategically focus on managing occupancy, providing safe and functional work environments, and providing appropriate complimentary amenities such as retail, concessions, concierge services and conference support. Furthermore, we proactively structure advanced planning and preparation for business continuity events as well as programmes such as critical incident management, operational risk management, amongst others. Continuously striving for operational excellence sets us apart in having assets that people prefer to spend time in.

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Life underwater

As part of our commitment to sustainability in operations, we have installed Nano Bubblers as opposed to using chemicals, reducing the lake’s Chemical Oxygen Demand (COD). This technology improves the oxygen content in the lake water by releasing air bubbles from the bottom of the lake using nano bubble diffusers. As a result of this, we have been able to improve dissolved oxygen by upto 70%, reduce Biological Oxygen Demand (BOD) and turbidity.

Our sustainable approach, saw an improvement in aquatic life my reducing fish mortality rates and the related odours.

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Computerized Maintenance Management System (CMMS)

Digital Entry

Smart facial recognition devices installed in communities to provide seamless access to residents. The devices are linked to Digital facial recognition registration for residents, and are accessible through a web portal and the Emaar One application. Residents will be able to request digital access credentials through their phones which automatically updates the access control database with facial credentials in a few minutes (pending approvals). This reduces the paperwork, physical interaction and need for physical access cards while enhancing the security of the communities. Visitor credentials can also be requested through the emaar one app which generates either facial credentials or QR codes. This system reduces contact points and enhances our operational efficiencies

To ensure smooth maintenance operations within our residential and commercial facilities, we utilize a Computerized Maintenance Management System and an Integrated Community Management system (ICMS). Our maintenance management is built around comprehensive asset lifecycle analysis and asset condition assessment that is used as the basis of our maintenance management and planning. Our maintenance activities are proactive, driven by predictive and preventive maintenance regimes, and all maintenance tasks are planned, monitored, and evaluated through our maintenance management software.

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Commitment to Sustainability

Command Control Centre

Emaar Group Operations is committed We employ an indigenous smart asset to environment and energy management management system that connects 10 within its portfolio. In doing so, Emaar vertical communities, comprising 65 Group operations is accredited to the buildings fitted with 8,200 equipment following ISO management systems, – that feed operational parameters from which include: 65,000 data points. Known as Smart Community Management (SCM), this • Asset Management System sophisticated web and mobile app(ISO 55001) enabled system has replaced individual • Environment Management System community-level building management (ISO 14001) systems with a central Command • Energy Management System Control Centre. This is a platform that (ISO 50001) monitors and controls all MEP assets and • Health & Safety Management System their sequence of operations. ISO 45001

Emaar Group Operations has implemented a robust Integrated Management System based on the ISO standards to improve the environment and sustainability of our operations and facilities.

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OUR STRATEGIC PILLARS

Examples of projects launched in 2021:

Majestic Vistas at Dubai Hills

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Palm Hills by Elie Saab

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4
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Pillar 4: Strong future pipeline

Our development pipeline of new projects includes opportunities which we supplement from our portfolio of existing and new master community developments. We have a deep pipeline, which positions us to take advantage of future market cycles and resulting opportunities.

Strategy

We continue to enhance our skills and expertise that extend well beyond simply knowing about local land use regulations and ordinances. We will continue to leveraging our well-established relationships with state and local governing bodies, land owners, investors, real estate brokers, homeowners associations and civic groups. Through strong market research, we are identifying opportunities that have a high probability of healthy returns. We continually harness our deep knowledge of the markets we serve and in our ability to identify organic and inorganic opportunities. We look to grow our portfolio of retail, commercial, residential and hospitality assets in a balanced way that fuels our future growth, while optimising our return on capital deployed.

AED ~28.6 Bn

Revenue Backlog to be recognised over next 1-4 years (Inclusive of numbers related to non-consolidated JVs & JDA)

>31Mn sq ft Projects under development in the UAE as at 2021

~280 Mn sq. ft. Land Bank (GLA) (Inclusive of numbers related to non-consolidated JVs & JDA)

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Caya at Arabian Ranches

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OUR STRATEGIC PILLARS

We are instilling sustainability as basic hygiene practice in which each of us are environmentally and socially discerning, as well as making sound financial sense.

5

Pillar 5: Attaining ESG distinction

Our key strategy to drive our business forward is to establish and develop outstanding urban centres and neighbourhoods which deliver positive outcomes for all our stakeholders on a long term, sustainable basis.

Strategy

By ascertaining and closing gaps and operating more sustainably, we are certain that we can deliver superior financial value in tandem with positive environmental and societal impact. This will include establishing a strategy for reducing embodied carbon and external commitments; developing the action plan for further reducing operational carbon; exploring greater use of recycled materials and alternatives to cement; and strengthening our governance framework to prioritise and monitor ESG.

We are also strengthening our organisation’s sustainability DNA by defining and developing meaningful initiatives. We mean to establish an approach for establishing real estate climate resilience management that involves creating awareness, continuous self evaluation, and integration of standards into business practices.

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ESG and Aligning to SDGs

At Emaar, we believe that operating sustainably can be a source of competitive advantage. In 2021, we took initial steps to establish our Sustainability Strategy formally. To unlock possibilities, we are building strong stakeholder engagements. This involves Emaar aligning its business with the UN SDGs by engaging with our shareholders, our employees and showing commitment to the public.

At Emaar, we recognise the opportunity to advance the SDGs and this year’s integrated annual report demonstrates our dedication to the important objectives embodied in the SDGs.

(See our key SDGs that we are aligned with in line with the most material aspects of interest to stakeholders on page 24.)

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OUR STRATEGIC PILLARS

5

Highlights

Progress

• Published our first Sustainability Report for FY2020

• ‘Operations without a critical incident’ (from 90% compliance in FY2020)

• Establishing a strategy for reducing embodied carbon and external commitments

  • Implemented ISO 14001 (Environment Management System); ISO 50001 (Energy Management System); ISO 45001 (Health & Safety Management System) and ISO 55001 (Asset Management System)

• Achieved 63.43% waste segregation rate as part of operational activities;

• Developing the action plan for further reducing operational carbon

• Well established framework of policies for Code of Conduct; Anti Bribery and Corruption; Whistleblower; cyber risk and data management, amongst others.

• Exploring greater use of recycled materials and alternatives to cement

• Strengthening our governance framework to prioritise and monitor ESG

  • Many of the existing and new developments are EV Ready, with more than 40 EV chargers installed across assets by 2021

• In the process of establishing an Executive Steering Committee for ESG matters.

• Upgrading several facilities to be lit by LEDs; be controlled by energy efficiency devices.

• Established several energy efficiency measures across our multiple assets and communities.

• Achieved 100% compliance in Health & Safety during 2021 with respect to

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• Won several International and Local • Championing responsible Awards during 2021 for best energy, employment. Read more on page 58. community, innovation, residential • Integrating wellbeing. Read more on

• and CSR management. (For the full page 52.

• list of initiatives, see our chapter on Sustainability page 60.)

• Integrating wellbeing. Read more on page 52.

• COVID-19: We continue to comply with a range of global standards addressing project shutdown protocols, personal screening, social distancing, PPE requirements, and protocols in the event of confirmed cases. (See our chapter on Human Capital page 58 for more on our COVID response.)

We have a responsibility to contribute to the development of our host countries and have a significant role to play in the achievement of the Sustainable Development Goals (SDGs).

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SDG MAPPING

SDG Ma in pp g

Integrating sustainability

Our environmental and social outcomes

Our Approach to Aligning with the Sustainable Development Goals

Sustainability is integrated into our strategy and decision making – it does not stand alone. We believe this is the most effective way to do things and has the greatest impact. This section demonstrates this approach in action. This section demonstrates how we are committed to supporting the UN Sustainable Development Goals (SDGs). Through the process of understanding our material issues and creating our overarching strategy, we have identified nine goals that are most relevant to our business and where we can make the most significant contribution.

Our SDG Focus Areas

At Emaar, we consistently review our functional strategy to integrate measurable activities that bolster sustainable practices within our organisation. By setting sustainability targets, we intend to demonstrate our commitment towards the responsible use of all our resources. To ensure the implementation of these sustainability initiatives, Emaar has defined a set of Key Performance Indicators (KPIs) that are applicable to all business units and assets of the Group. Some KPIs are identical to the indicators proposed in the SDG Compass guide, such as energy consumption within the organisation, while others are generally aligned with the Sustainable Development Goals (SDGs) set out by the UN.

What we are doing

We recognise the importance placed on environmental, social and governance (ESG) issues by our stakeholders and we aim to integrate sustainability into all aspects of our business. To strengthen our sustainability governance, this year we are in the process of establishing a Sustainability Committee that will have oversight over issues relating to sustainability throughout our operations, and will also be responsible for overseeing the development and delivery of strategic aims and initiatives to improve our ESG performance. We recognise the threat of climate change and the importance of reducing waste. To mitigate our impact, we have introduced targets to reduce our carbon and waste intensity. We are also committed to creating social value, delivering a positive impact through our relationships with customers, the communities in which we operate, suppliers and our people.

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||||
|---|---|---|
|Our Environmental or Social Outcome|Relevant SDGS|Read More|
|Safety and health|Focus area 1: Health and Safety|
|Annual Injury Incidence Rate of 0% (Major incidents)|Page 52|
|in 2021 within the UAE|
|Training and opportunity creation|Focus area 4: Our People|
|Implemented several training and development|Page 58|
|programmes|
|Employee engagement|Focus area 4: Our People|
|100% of employees receiving regular performance and|Page 58|
|career development reviews|
|Wellbeing|Focus area 4: Our People|
|Launched a mental and physical health awareness|Page 58|
|programmes|
|Equality and diversity|Focus area 4: Our People|
|~29% of our workforce is female|Page 58|
|Strong governance and integrated risk management|Risk Management Page 82|
|Establishing a Sustainability Committee in 2022|Corporate Governance Report|
|on Pages 84 - 113|
|Responsible procurement|Our Website:|
|Supply chain contractually obliged to adhere to our|https://www.emaar.com|
|Supply Chain Code of Conduct|
|Five-Star customer service|Focus area 3: Our Customers|
|We develop quality, safe and sustainable communities.|Page 56|
|Our developments are resilient to a changing climate and|
|enable our customers to lead healthy lifestyles|
|Waste|Focus area 5: Sustainability|
|Improved our overall waste segregation rate in 2019 from|Page 60|
|48.6% to 63.4% in 2021|
|Climate change|Focus area 5: Sustainability|
|Achieved 5.4% in scope 2 emissions reductions in 2021|Page 60|
|compared to 2019|

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50 EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

Section 33 Our Focus Areas 52 - 65 Focus area 1: Health and safety 52 Focus area 2: Financial capital 54 Focus area 3: Our customers 56 Focus area 4: Our people 58 Focus area 5: Sustainability 60

EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021

EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021

FOCUS AREAS

1

Focus Area 1:

3

Health and safety

Performance metrics

All types of incidents involving the business in the various assets are quantified and analyzed. Factors contributing to these incidents are also considered. Those areas where there is any increase in figures will form part of discussion with Senior Management to result in formulation of improvement programs. When compared with 2020 where lockdown and restrictions due to Covid-19 were present most of the time throughout the year, 2021 saw considerable increase in the footfall and freedom from restrictions which contributed to the incident statistics.

Despite Covid-induced additional tasks, we were able to maintain low frequency rates in 2021 during the COVID-19 period, and demonstrated the diligence of our HSE and operational teams in retaining a focus on workplace & public safety in the midst of applying a range of new practices and protocols.

Fatality

It is to be noted that no fatality has resulted in Emaar in 2021 as a result of direct or indirect impact of lapse in Occupational Health & Safety measures. This is due to the cohesion between the various stakeholders and the synergy achieved due to the seamless interaction created due to the comprehensive HSE Management mechanism.

COVID-19

The onset of COVID-19 resulted in significant disruptions across Emaar’s operations. There was also a significant broadening in the scope of our health and safety objectives. In response to the pandemic, we developed a range of global standards addressing project shutdown protocols; personal screening for people entering our operations; social distancing applications; COVID-19 specific personal protective equipment requirements; and protocols in the event of confirmed cases.

2021 has reinforced that the health and safety of our people, and those who interact with our operations, is a significant priority for Emaar.

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Upon the onset of COVID-19 cases in the A large number of inspections and UAE, Emaar introduced and managed a compliance verifications with checklists COVID-19 Hotline to record, quantify, were constantly done in all locations guide and manage COVID-19 cases throughout 2021 to ensure that the amongst all Emaar employees. frequently changing COVID-19 Local Regulations are complied with.

business units in addition to the existing site-specific HSE mechanism. The 7 committees are:

Objectives and targets

Emergency Response Planning

In support of Emaar’s ongoing commitment to health and safety, we developed a range of objectives and targets to be applied from 2022 to help re-affirm our purpose when it comes to health and safety, as well as establishing a broader range of key performance indicators.

Emergency management and response arrangements are carefully and promptly devised to address such scenarios with ease and professionalism. For example, emergency arrangements for the new Dubai Hills Mall is developed and communicated. This includes detailing routes to the paramedic room, the ambulance route, fire safety arrangements, and locations for the emergency cabinet and chair.

1. Risk assessment/ management

2. Legal and Standard compliance

3. HSE Training and Competency development

4. Inspection and field visit observations

Seven specialized committees are formulated for a comprehensive and consistent HSE Management across all

1. Emergency and crisis management 6. Contractor management

2. Incident management and investigation

Examples health and safety initiatives that impact customers, residents and employees

• Introduction of centralized Covid-19 • Counselling and mentoring of participants Hotline to monitor and manage ambassadors with anxiety related • Hotels passed Bureau Veritas

• Covid-19 cases in Emaar premises symptoms, complicated medical and Safeguard Label Certification and

• surgical conditions

• • Health Camps – Free optical check, DTCM endorsement to ensure Dental check, BMI and vital signs • Participation in community Covid-19 protocols fully aligned with check, nutritionist consultation walkathons – pink walk, walk for international and UAE standards. education, walk for autism

• Healthy meal days in dining halls

• Health & Safety team is continuing

• • Multiple sports tournaments running monthly audits of health protocols throughout the year for all interested related to Covid-19.

• Health Talks – breast cancer awareness, prostate cancer awareness among others

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• Yoga and Zumba

• Timely Isolation and quarantine of ambassadors diagnosed with communicable diseases as well as those suspected ones

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FOCUS AREAS

2

Focus Area 2:

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4
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Financial Capital

A strong balance sheet and access to liquidity enables Emaar to fund the execution of its pipeline and deliver quality earnings.

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Our Approach to Financial Performance

Our operations are supported by a disciplined governance framework and a robust portfolio management strategy. We aim to generate earnings for our shareholders and deliver value for our customers through these businesses in their own right. By leveraging and combining the advantages of our integrated business model, we aim to create enhanced value for our shareholders, delivery partners and the community. Innovative design excellence, the creation of better public places, and superior sustainable solutions are some of the key value creators Emaar delivers for its stakeholders. Our portfolio management strategy provides structure and financial discipline across our operating segments, and is designed to maximise risk adjusted returns for shareholders and deliver value for our customers.

Detailed Financial Performance And Outlook

For detailed information on our 2021 financial performance, refer to the Management Discussion & Analysis section on pages 66 - 81, and the Consolidated Financial Statements starting on page 120.

Financial Strategy

How we approach portfolio management is at the core of our financial strategy. Our decision-making process when it comes to portfolio management aims to:

• Maximise long term shareholder value through a diversified, risk adjusted portfolio

• Leverage the competitive advantage of our integrated business model

• Optimise our business performance relative to the outlook for our markets on a long-term basis

• Provide financial strength to execute our strategy, maintain an investment grade credit rating, and capacity to both absorb and respond to market volatility.

At Emaar, we continuously review these objectives in conjunction with our overall strategic review.

How we measure Financial Performance

When measuring financial performance, we focus on Net Debtto-EBITDA ratio, Return on Equity and Earnings per Share to measure our ability to pay debts and the returns we achieve for our shareholders.

ROE

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2021 22%
2020 15%
0% 5% 10% 15% 20% 25%
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EPS

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2021 0.81
2020 0.41
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
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Net Debt/EBITDA

The net debt-to-EBITDA ratio demonstrates the Group’s ability to generate funds and maintain debt at optimum levels. The Group currently has a negative Net Debt / EBITDA ratio , which demonstrates Emaar Development’s strong ability to comfortably raise and serve its debt.

Market Capitalisation (AED) as on 31st December

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2021 up 59%
2020
0 5,000,000,000 10,000,000,000 15,000,000,000 20,000,000,000
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FOCUS AREAS

3

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1
2
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Focus Area 3:

Our Customers

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Successful customer relationships depend on our ability to understand what is truly important to customers and then delivering what they want. We understand Emaar has the unique opportunity to greatly impact community health and wellbeing, enabling our customers to live an appealing lifestyle. Taking care of the people who visit, live, work, play and invest in our communities is at the heart of our efforts and guides our actions as a group.

Our customers range from individuals to the largest investment and corporate organisations.

Customer Experience Research

At Emaar, we continuously engage with our customers through various initiatives to help us understand how customers perceive their experiences with us and identify where we can improve. It also guides decision making on customer experience improvement planning and new product and service development.

Customer Experience Improvement Initiatives

Customer Excellence at Emaar puts the customers at the centre of everything we do. All employees do their best to ensure we deliver the product or service that the customers need. In doing so, Emaar aims to achieve long-term customer satisfaction which, in turn, helps us to maintain a sustainable competitive advantage.

We have fundamentals that we follow in all customer excellence departments within Emaar and we are constantly seeking feedback from our customers:

• To understand and be clear on what our customer needs

• Adding value by driving significant business decisions and service enhancements through meaningful insights and data analytics

• Communicating effectively to enhance customer experiences

• Empowering our customer-facing staff to defined operational excellence standards

• Listen and learn to provide a solid customer foundation focus

Smoking Free Buildings

Indoor Environmental Quality

We believe that our building occupants should be protected from exposure to smoke generated from tobacco to ensure their health and safety. This is achieved by implementing a policy prohibiting smoking inside our buildings and prohibiting smoking within 7.5 meter from building entrance, windows, or fresh air intakes. Additionally, designated smoking areas have been allocated around the building where mechanical or natural ventilation is sufficient.

Indoor Environmental Quality category focuses on maintaining a clean indoor air quality within the facility, smoking free buildings, thermal comfort conditions, natural daylighting, glare control, internal noise, internal cleaning and humidification. This has a direct impact on the wellness of building occupants, and it impacts their productivity and level of comfort, therefore we implement the following sustainability measures in our facilities to ensure health and safety of our occupants:

Indoor Air Quality

Our goal is to ensure that all our buildings are ventilated with a minimum amount of outdoor clean air by Fresh Air Handling Units, or naturally ventilated by providing passive ventilation through operable windows or roofs. The quality of indoor air is measured by the level of Carbon Dioxide (CO2) inside the building, the size of outdoor air particles (such as dust), the amount of Carbon Monoxide (CO).

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FOCUS AREAS

4

Focus Area 4:

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3
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Our People

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Our people are the greatest contributors to our success and enable us to fulfil our vision to create the best places.

As we continue to grow our influence internationally, the way we work is evolving. Together with our partners, we aim to deliver large scale projects faster by drawing on innovation, knowledge sharing, leadership excellence and our diverse and capable workforce. Our ambition is to create a work environment that:

leadership excellence, codifying and sharing knowledge globally, creating a consistently positive employee experience, and developing and deploying our talent globally.

• Values and cares for its people, with safety and wellbeing as our priority

Developing and Deploying Key Talent

• Has inspirational leaders who others aspire to emulate

As the scale of our projects increases, we continue to invest in developing the capability of our people to deliver. This investment is across all career stages.

• Is team-oriented, inclusive and diverse

• Fosters a unique culture that balances innovation, knowledge sharing and risk management.

In 2021, Emaar provided significant hours of training development to its employees.

To support these ambitions, our people strategy has focused on developing

New End to End competency-based Talent Acquisition process: We initiated a new recruitment process to focus more on a structured approach that follows a consistent competency framework for each grade level. This process involves immersive candidate experiences.

Internship Programmes: In 2021, we had physical internships from American University of Dubai (AUD), American University of Sharjah (AUS) and Herriott-Watt with a total of 10 students participating. The interns worked closely with the business on specific research-based projects that have been crafted to add value to the organisation in a variety of different areas for 8 weeks.

Emaar Leadership Academy: We designed the Emaar Leadership Academy that consists of five development programmes from the executive level and senior managers up to mid-to-front-line managers. The leadership programme “Future Focus Pilot” was launched as part of the Leadership Academy, wherein 23 Top Talents graduated the program, including 5 Emiratis. The Future Focus Leadership Programme was piloted to the selected high potential talents as an initial development ground to solve high-priority organisational problems, working through the innovation and framework designed by an expert consultant to build and present solutions for our Executive Leaders.

Top Talent Recognition and Engagement Program: We invested in assessing internal leaders and recognised top talents within the organisation to lead key projects that will have a strong impact and disrupt the business. New groups of top talent are identified every 6 months, and projects assigned to them based on their expertise and competencies as evaluated by a case study assessment.

Revamped Performance Management Framework: We introduced new elements in leaders scorecards such as Innovation, Risk Management, Succession Planning for Critical roles, Learning and Development to have a well-balanced scorecard.

KPI Heading	FY2021
Percentage of employees receiving regular	100%
performance and career development reviews

The Employee Experience

Listening to our people helps us create an environment and experiences that support our employees. It provides an environment where our people are recognised and rewarded for living our values and building our culture to create the best places. We continuously communicate and engage with our people in designing and evolving how we work to foster greater enterprise-wide collaboration, continuous learning and open and transparent dialogue.

We are also committed to promoting the fair treatment of all employees in the workplace. We have systems in place to investigate any instances reported and ensure issues are addressed appropriately in the interests of the employee and the Group, all of which are supported by various policies. Furthermore, Emaar recognises and prioritises the importance of the employees’ wellbeing and their health and safety while working under diverse businesses and environments. Dedicated HR Business Partners are available across business functions to oversee and address employee-related issues as a point of contact, which is supported by employee feedback through a range of channels (e.g. surveys, internal feedback forums).

Diversity and Inclusion at Emaar for 2021

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American3% Others1% UAE8% Other GCC
European 1%
11%
African Middle East (other than GCC)
2% 21%
Other Asian countries
5%
South-East Asian
12% Indian Sub-continent
36%
FY 2021 FY2020 FY 2019
Female share of total workforce 29.2% 31.8% 32.4%
Females in all management 20.6% 24.0% 27.7%
positions, including junior, middle
and senior management (as % of
total management workforce)
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Wellbeing

Emaar has always focused on the health and wellbeing of its people and developed a holistic framework and initiatives to promote and support this focus. We run periodic Health Camps that offer free optical, dental BMI and vital signs checks, along with nutritionist consultations and healthy-meal days in dining halls. Periodic Health Talks help raise awareness of chronic diseases such as breast and prostate cancer. We also prioritise mental health initiatives with regular Yoga and Zumba activities. This is supported by providing easy access to counselling and mentoring to help with anxiety. We also prioritise the importance of physical health through encouraging participation in community walkathons for various causes such as the pink walk, talk for education or the walk for autism, along with multiple sports tournaments throughout the year.

Additionally, we supported multiple vaccination initiatives working with the local government to offer first, second, and booster doses at our Emaar locations, ensuring top priority is given to our employees and their families safety and health.

Health and Wellbeing Response to Covid-19

In response to COVID-19, Emaar put in place a range of measures across our global operations to support our people’s health and wellbeing. The Group’s Health & Safety team continues its comprehensive monthly audits of health protocols related to Covid-19.

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FOCUS AREAS

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Focus Area 5:
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Sustainability

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As the leading real estate developer in the region, we recognise the responsibilities we have as a Group in adapting our operations and the assets we build to help tackle climate change. We are committed to reducing carbon emissions and waste in our business activities and have established new carbon and waste reduction and renewable energy targets. We aim to reduce the impact our homes and developments have on the environment, create developments that are future proofed for a changing climate and deliver social value for our customers and communities in which we work.

Sustainability is about enabling the creation of the best places and meeting future needs of our stakeholders. At the core of our decision-making process, we endeavour to be a trusted partner who can deliver efficient, healthy, resilient, culturally and socially inclusive outcomes that deliver long term value.

Our use of sustainable district cooling has led to a reduction in our consumption of carbon in operations.

Our Strategic Alignments UAE Net Zero 2050 Dubai 2040 Urban Master Plan Paris Agreement UAE Vision 2021 UAE Green Agenda 2015-2030 UN Sustainable Development Goals As we align ourselves with UAE’s and international strategic goals to build and operate in more sustainable ways, we have initiated and participated in several strategic initiatives that will align with our goals. • Tis year, we launched the Emaar Global Construction Innovation and Sustainability Challenge to encourage participating startups to pitch their innovative ideas over a two day live session in Dubai, from which the best ideas are piloted. • We have collaborated with the Dubai Future Foundation in developing a roadmap towards future Emirati housing. Tis involves developing the codes & regulations and technology & innovation strategy to enhance construction efciency. • We have also collaborated with the UAE Minister of climate change to participate in the “Decarbonisation of cement industry”discussions that will have a signifcant impact on the development industry. • We are working on the gap identifcation to obtain LEED certifcation for our portfolio.		Reducing energy and carbon in our operations Our progress Tis year, we introduced strategies and implemented certain initiatives to target and reduce our scope 1 and 2 carbon emissions intensity across our Group operations. Our use of sustainable district cooling and energy efciency measures have led to a reduction in our consumption of carbon in operations. Te below is considered as scope 2 emissions based on the defnition that we are purchasing electricity from the utility/energy provider. Note:As a result of the pandemic in 2020, several facilities were locked down in compliance with government requirements. In light of this 2020 is an outlier, and hence 2019 has been used as the baseline/comparative year. Emaar Development KPI Unit 2019 2021** cooling has led to a reduction in our consumption of carbon in operations.
		Electricity Metric tonnes CO2 235,631 219,539
		Cooling Metric tonnes CO2 53,572 52,752
		Our priorities in 2021 63.43% Waste segregation rate achieved in 2021

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Sustainable District Cooling

Why it matters

Green, clean, efficient and climate friendly cooling through the use of sustainable, energy-efficient, environmentally friendly engineering solutions and practices is important to Emaar to ensure its customers receive the best quality service. Our district cooling service revolve around energy and water efficiency, reducing carbon emissions, and sourcing equipment in responsible and ethical ways.

Responsibility

Emaar’s district cooling arm, Emaar District Cooling (EDC) is committed to fulfilling its long-term vision of shaping a sustainable energy landscape across the UAE and reducing carbon emissions in the process. By taking an intelligent approach to everything they do, EDC is known as one of the leading providers of district cooling services in the region. EDC is well-recognised in the District Cooling sector in Dubai, who garnered prestigious awards from CPI Industry such as the District Cooling Utility Provider, District Cooling Company and O&M Company of the year (Chilled Water Plant) for the years 2018, 2019 and 2021 for the IoT Integration Initiative of the Year Award from CPI’s Climate Control Awards. In addition to being a member of IDEA (International District Energy Association) from 2018-2019, EDC was presented with a Carbon Champion Award by IDEA for its outstanding contribution to the reduction of CO2 emissions through deployment of highly efficient district cooling services in the Gulf Region.

A Green Solution

A Green Solution
KPI	2019	2020	2021
Carbon Emissions Savings(CO2)	17,995	34,102	56,030
EnergyEfciency (kWh/TRH)	0.80	0.73	0.71
Water Management Efciency (Ukg/TRH)	1.73	1.63	1.18

To reduce the potable and TSE water for District Cooling application, Emaar has recently completed the construction of a District Cooling Plant integrated in a Tower Basement floor in Emaar Beachfront utilising a Direct Sea water system. This will enable EDC to achieve substantial reduction in the water footprint. The advantages of Seawater Intake & Outfall System are that it is more environmentally sustainable, reduces costs and also provides an alternative to consumption in areas where potable water / TSE is not available reduce the overall carbon footprint. It also removes the need to utilise desalinated or fresh water, including TSE water, thereby adhering to the sustainability goals of Dubai Government.

Reducing waste in our construction operations

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Emaar’s district cooling arm is committed to fulfilling its long-term vision of shaping a sustainable energy landscape across the UAE and reducing carbon emissions in the process.

20% to 25% in terms of concrete and reinforcement. As a result, the façade requirements decreased due to reduced wind loads, resulting in an overall reduction of 15% in CO2 emissions. As this review process has now been released as a part of the Dubai Building Code, the impact of our contribution will dictate how all new buildings in Dubai are designed with sustainability in mind.

Our progress

Through implementing thorough internal reviews of consultant submitted structural designs, we achieved optimal material usage efficiency by investigating sensitivity changing several parameters in the design. Overall, these design reviews had a significant sustainable impact as this led to material savings of roughly 10 to 15% in terms of concrete and reinforcement usage. This led to the added reduction in building weight, which in turn then reduced foundation requirements, again reducing material consumption.

Case Study

Emaar won the Big 5 – Sustainability initiative of the year 2021 award for the following initiative:

Independent from the above-mentioned material savings, Emaar, together with DM, had an active role in investigating and providing a formal design and review procedure through the establishment of clear revised structural design guidelines for Dubai. This reduced lateral and vertical loads on buildings significantly (for example, wind and seismic forces reduced by 35%), which in turn led to a potential material reduction of

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Responsible Procurement

3DMR Concrete printing In our efforts to further reduce our material usage, we are investing in cutting edge technology to be at the forefront of building more sustainable buildings. To move towards building more sustainable assets, we successfully completed a prototyping exercise using a first-of-its-kind 3D printed home in Arabian Ranches III. This initiative is in line with a directive from His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to construct 25% of buildings in the Emirate using 3D printing technology by 2030.

Our supply chain partners are critical to the performance and sustainability of our operations. They play a significant role in supporting us to reduce our environmental impact and operate safely and efficiently. Where possible, we work with local suppliers to support the local economy and reduce transport emissions.

Human rights and our Supply Chain Code of Conduct

We apply strong principles, acting in an ethical manner and respecting human rights in our own business and across our supply chain. Our Supply Chain Code of Conduct (Supplier Code) sets out requirements concerning environmental and social matters. It includes a requirement for supply chain partners to manage their business operations in a manner consistent with the Modern Slavery Act. The Supplier Code also mandates safe working practices, treating people with respect and minimising

Modular construction

We worked with Dubai Municipality to approve a high-rise modular buildings system that brings significant benefits to the construction process. Using this system, we are able to implement enhanced quality assurance in the factory, and incur significant savings in construction time (up to 40%) on site, reducing the environmental impact of the overall construction process.

impacts on the environment. All supply chain partners are contractually obliged to adhere to our Supplier Code.Both our Supplier Code and Anti-slavery and human trafficking statement are available on our website.

Delivering Sustainable Communities

Developing and managing spaces that people love is one of our five strategic priorities. Attractive placemaking helps us deliver appealing, diverse and wellconnected communities where people and nature can thrive. It enables us to mitigate and manage the impacts of climate change, improve biodiversity and deliver developments that are resilient for the future. We work with ecologists to put plans in place to protect and enhance natural habitats and biodiversity on our developments. We also recognise the value of accessible green space for people’s wellbeing. Where possible across our developments, we prioritise the inclusion of green spaces for the community. Infrastructure to promote sustainable and healthy living – including cycle lanes, footpaths and good access to public transport – are incorporated into our developments.

Our business activity creates many other socio-economic benefits. We create new employment opportunities for local contractors, apprentices and graduates, as well as supporting employment in our supply chain through our spend on materials and labour. This benefits local communities through the provision of sports and educational facilities, public art, community buildings, transport improvements and environmental protection and enhancement measures.

Community Engagement

Charitable giving

The Emaar Foundation that serves as the group’s apex entity to drive corporate social responsibility (CSR) initiatives regionally and internationally. The Emaar Foundation Board has been constituted with Ahmad Al Matrooshi of Emaar Properties.

With the objective of positioning Emaar as a global leader that inspires humanity through its CSR initiatives, Emaar Foundation is fully aligned to the group’s brand values of industry thought leadership and its commitment to making a tangible contribution to support the communities in which it operates.

In 2021, the Foundation contributed to number of initiatives related to the development of the local community. Below are some examples:

• World Autism Awareness Day, in collaboration with Dubai Autism Center – 2nd April 2021

• World Down-Syndrome Awareness Day, 21st March 2021

• Breast Cancer Awareness Month, October 2021

• Emirates Red Crescent Education Initiative to support the children of low-income families in the UAE and providing them laptops and tablets.

• Emaar Vaccination Drive. Emaar successfully vaccinated over 5,000 of its employees, their family members and those employed by Emaar’s entities over five days.

• Iftar for Service Providers. Emaar Community Management supplied 188,640 Iftaar meal to the community’s service providers across 12 communities and service provider campsites.

• Emaar’s Partnership with Community Development Authority, which translated into many initiatives and donations totaling AED 3,587,416.

• Emaar has dedicated over USD10 million for the Economically Weaker Section (EWS) housing projects in India since 2017.

• March 2021, International Mother’s Day.

• April 2021: Ramadan greetings projection on Burj Khalifa and the launch of a new Dubai Fountain show featuring the voice of AlAfasi.

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• May 2021: Eid Al Fitr Show and the new Emirati song debuts at The Dubai Fountain, “Esmaha Dubai”, by Emarati music composer and director Mohamed Al Ahmed.

• July 2021: Eid Al Adha projection on Burj Khalifa and Dubai Fountain Eid shows.

• Oct 2021: Expo2020 Dubai special projection show launch on Burj Khalifa, along with Expo’s song launch at The Dubai Fountain.

• Nov 2021: Diwali Celebrations greeting projection on Burj Khalifa with a special Indian music show at The Dubai Fountain.

• Dec 2021: The UAE 50th National Day special show and greetings projected on Burj Khalifa and the UAE National Anthem is played at The Dubai Fountain.

• Dec 2021: Emaar NYE 2022 “Eve of Wonders” celebrations & fireworks light up Dubai sky in a show broadcast to an estimated 3 Billion viewers worldwide.

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EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021
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Section 44 Industry Context & Performance 66 - 83 Management discussion and analysis 66 Risk management 82 EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021

MANAGEMENT DISCUSSION & ANALYSIS

Real GDP Growth (YoY percent change 2021)

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6% or more
3%-6%
0%-3%
-3%-0%
Less than -3%
no data
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Source: International Monetary Fund

Management Discussion & Analysis

Global Economy

The global economic recovery began taking shape in 2021 and is continuing into 2022, even as the pandemic persists in various parts of the world. The robust recovery in 2021 marked the highest growth rate in more than four decades, and was driven by strong consumer spending and some uptake in investment, with trade surpassing pre-pandemic levels. This was despite multiple supply disruptions for many goods and products, and worsening pandemic dynamics for low-income developing countries, and the highly transmissible Omicron variant of COVID-19 unleashing new waves of infections. However, the recovery during 2021 was uneven within economies. The labour market became imbalanced, with many people struggling to find jobs, while many businesses in several sectors have difficulty recruiting workers. A shortage of workers in some sectors also reflects a decline in labour force participation rates in most OECD countries. Imbalances also remain across industries, with sectors dependent on interpersonal contact such as travel, tourism and leisure continuing to suffer, while demand for consumer goods has been strong, especially in the United States and Europe.

According to the International Monetary Fund, the global economy grew by an estimated 5.9% in 2021. Yet the momentum for growth – especially in China, the United States and Europe – slowed considerably by the end of 2021, as the effects of monetary and fiscal stimuli began to recede and major supply-chain disruptions emerged. Rising inflationary pressures in many economies are now posing additional risks to recovery.

Going forward, the INTERNATIONAL MONETARY FUND expects the global economy to moderate to 4.4% in 2022. A revised assumption removing the Build Back Better US fiscal policy package from the baseline, earlier withdrawal of monetary accommodation in multiple countries, and continued supply shortages and logistical bottlenecks are some reasons for a more conservative estimate for 2022. Furthermore, in China, pandemic-induced disruptions related to the zero-tolerance COVID-19 policy and protracted financial stress among property developers are other key reasons for downgrading 2022 growth. Looking further ahead, INTERNATIONAL MONETARY FUND expects global growth to slow to ~3.8 percent in 2023.

In the meantime, the rebound continues to lose momentum in 2022 as inflation pressures have emerged in most economies, as disruptions in energy, food and commodity markets have pushed up prices; high energy prices and fuel shortages are limiting manufacturing of

key materials and intermediate goods; and bottlenecks in production chains are spreading to more generalised shortages of goods.

key materials and intermediate goods; Global oil demand is set to surpass preand bottlenecks in production chains are pandemic levels in 2022 as fears over the spreading to more generalised shortages latest coronavirus wave subside, creating of goods. the potential for another “volatile” year of oil prices. Oil prices are currently The recent conflict between Russia and soaring high at levels not seen recently, Ukraine has added more fuel to the caused by the economic revival driving fire, attaching significant economic demand for oil and oil-based products. Geopolitical tensions between Russia risk for the global economic recovery. The United States and European and Ukraine and increased instability in the Middle East are adding to oil market powers have stepped up unprecedented nervousness. An increase in oil price will economic sanctions against Russia, which economists warn could also bite not only be seen at gas stations, but it will be felt in virtually all the goods and the global economy. Among multiple levels of sanctions, Washington and services consumers use. Now amplified Brussels have targeted major Russian by energy price shocks, inflation has banks, cutting them off from SWIFT, become a global public concern. the global messaging system used for moving money around the world. These sanctions and a prolonged conflict are expected to disrupt the supply of many commodities that Russia and Ukraine are dominant suppliers of, causing further stress to global supply chains.

Oil (Brent) Price Movement

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110.00 70.00%72.41%
105.00
60.00%
100.00
95.00 50.00%
90.00 40.00%
85.00
30.00%
80.00
20.00%
75.00
70.00 10.00%
65.00 0.00%
60.00
Apr May Jun Jul Aug Sep Oct Nov Dec 2022 Feb Mar
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Source: https://markets.businessinsider.com

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MANAGEMENT DISCUSSION & ANALYSIS

Management Discussion & Analysis

UAE’s Economy

The year 2021 will be remembered for how successfully the UAE countered the coronavirus pandemic, as it rolled out one of the most effective vaccination programmes in the world. It will also be noted for the strategic interventions and announcements made for major projects to boost the country’s economic performance.

As per The World Bank, despite the disruptions caused by the Covid-19 pandemic, the UAE’s GDP rose by 2.6% YoY in 2021, supported by the growth of non-oil GDP of 3.8 percent (Source: UAE’s Central Bank). According to the UAE’s Central Bank, economic activity in the UAE continued its recovery through the second quarter of 2021, with growth reaching close to the pre-pandemic level. The World Bank forecasts that the UAE’s economic growth is expected to accelerate in 2022 compared to 2021, growing at 4.6% in 2022 against 2.6% in 2021. In addition to higher oil prices, nonoil sectors such as travel and tourism, real estate, hospitality, aviation, and manufacturing started to perform better in 2021, especially since the beginning of the Expo 2020 Dubai, a major driving force for the country’s economic growth in the last quarter. Travel to and from the UAE also normalised during 2021, as the UAE’s national air carriers also rebounded from the impact of the pandemic, managing to restore flights to nearly 500 destinations across 110 countries. This bodes well for the tourism and hospitality industry, showcasing the resilience of the UAE economy.

According to Knight Frank Research’s report on ‘UAE MARKET REVIEW AND FORECAST 2021’, looking ahead GDP growth rates between Abu Dhabi and Dubai are initially expected to fragment, where Abu Dhabi and Dubai recorded growth rates of ~1.6% and ~5.4% in 2021, and forecasted to converge to 5.3% and 5.0% in 2022 respectively.

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UAE GDP, Year-on-Year Change

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8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
-8.0%
1/1/15 1/1/16 1/1/17 1/1/18 1/1/19 1/1/20 1/1/21 1/1/22
-10.0%
UAE GDP Abu Dhabi Dubai
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Source: Knight Frank Research; Central Bank of UAE

The drivers of the UAE’s economy in UAE Government in 2021 included 2021 included multiple pillars, including an industrial strategy to boost the the launch of an industrial strategy worth sector’s contribution to national GDP AED300 billion, the start of trading in to AED300 billion, compared to the Murban crude oil, the launch of the first current AED133 billion. It also revealed phases of the ‘Projects of the 50’, Expo a plan aimed at doubling foreign trade 2020 Dubai and the announcement of value to AED3 trillion during the same President Sheikh Khalifa bin Zayed Al period, an increase of AED1.5 trillion, Nahyan of the most significant legislative while also investing nearly AED600 reform in the country’s history. Other billion in renewable energy to achieve key economic plans announced by the climate neutrality by 2050 .

The World Bank forecasts that the UAE’s economic growth is expected to accelerate in 2022 compared to 2021, growing at 4.6% in 2022 against 2.6% in 2021.

The country’s economic objectives also included generating economic proceeds amounting to AED200 billion through the UAE Railway Programme; increasing the contribution of the National InCountry Value Programme from AED22 billion to AED55 billion by 2025; and doubling foreign investments in the country to AED1 trillion in nine years, an increase of AED550 billion. The country also plans to achieve an annual increase of AED45 billion in exports across 10 foreign markets through 10×10 Programme.

over 40 laws to enhance the country’s economic environment and investment infrastructure.

AED

In October, the Ministry of Industry and Advanced Technology signed agreements with 12 industrial entities to form the Champions 4.0 Network, which aims to kickstart the newly announced Fourth Industrial Revolution programme, known as UAE Industry 4.0. In November 2021, President Sheikh Khalifa bin Zayed Al Nahyan amended

2.6% UAE’s GDP YoY growth in 2021

600 Bn

Planned investments by UAE in renewable energy to achieve climate neutrality by 2050

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MANAGEMENT DISCUSSION & ANALYSIS

Management Discussion & Analysis

Record number of US$10m home sales indicate a strong appetite for ultra-luxury residences.

Realty Industry

UAE Residential Market

Despite Dubai seeing some of the most stringent lockdown measures in the UAE throughout the early stage of the pandemic in 2020, residential demand was relatively resilient in 2021. According to Knight Frank, 2021 was a record year for Dubai with respect to the residential market. During 2021, Dubai’s residential market recorded over 52,000 apartment and villa transactions, totaling AED 114.2bn, more than the total for 2019 and 2020 combined. The year also witnessed a rapid pace in property

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58k[*]

price increases, as shown below. In the 12 months to the end of 2021, average residential prices increased by 9.2%, the quickest pace of growth since Jan 2015. Villas on the other hand experienced average price gains of 21.7% as the pandemic fueled the race for space. This, combined with a rush of wealthy international buyers targeting the emirate’s most expensive homes has underpinned the boom in villa prices.

2022 planned deliveries in DUBAI (units)

• Based on the past experience, actual deliveries have typically been in the range of 45% to 50% of the planned deliveries.

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Average transacted prices since the start of the pandemic - All residential property
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125
120 +21.7%
115
110
+2.6%
105
100
95 -01%
90
Villas All Residential Apartments
Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21
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9k

2022 planned deliveries in ABU DHABI (units)

Source: JLL’s ‘The UAE Real Estate Market Research | A Year in Review 2021’

Source: Knight Frank, “Dubai’s COVID Comeback” 2022, REIDIN

Key Drivers behind Strong Residential Performance in Dubai

Delivering Outperformance 1 2

Dubai’s long held belief of ‘build and they will come’ is gradually evolving into a ‘build it and they will come and stay’philosophy. This important change in the demand dynamic is contributing to the realisation of Dubai’s vision as an alluring destination. This change is now accelerating to place the emirate in far stronger position than many other global gateway cities, which are still grappling with the impacts of the pandemic.

1 2 3 Faster recovery from Covid Economic activity surging Job growth driving demand due to being most vaccinated causing demand for space for residences nation in the world 4 5 6 Record number of US$10m New UHNWI buyer profiles Pricing continues to look home sales indicate strong enter the Dubai market attractive relative to demand appetite for ultra-luxury residences 7 8 9 Normal luxury residential Shortage of ultra-prime New residency visa options stock still relatively residential stock driving new causing inbound migration affordable pipeline

Faster recovery from Covid due to being most vaccinated nation in the world

According to Knight Frank, Dubai’s deep supply pipeline may not be such a key downside risk to the market’s outlook. Between 2022 and 2025, some 97,000 units are scheduled to be delivered, making 2022 supply numbers alone the highest number of new home completions since 2009. However, taking reality into account, the developers’ ability to be flexible on rolling forward their phases on the masterplans to suit demand cycles, and inevitable delays to construction schedules will mean a more manageable supply pipeline for demand to absorb.

10

Deregulation for businesses causing influx of company formation & investments

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MANAGEMENT DISCUSSION & ANALYSIS

Management Discussion & Analysis

Group Overview

Group Introduction

Emaar Development PJSC, listed on the Dubai Financial Market with the ticker: EMAARDEV, is a leading realty player with significant residential and commercial projects under its wings.

AED

27.4 Bn

Highest ever property sales achieved in 2021

Emaar Development is the largest developer in the region and takes great pride in transforming Dubai’s landscape since inception.

The Group provides property development and development management services, primarily in the United Arab Emirates, and operates with a ‘build-to-sell’ business model. It develops community-based condominiums, villas, commercial units, and plots of land. The Company was formerly known as Emaar Development LLC, a limited liability company. Subsequently, the incorporation of Emaar Development PJSC (the “Group”) as a Public Joint Stock Group was approved by the Securities and Commodities Authority in 2017 and is based in Dubai, the United Arab Emirates. The Group is a majority owned subsidiary of Emaar Properties PJSC, a diversified player in residential, commercial, retail and hospitality assets across UAE and key international markets.

Since its inception to financial year 2021, Emaar Development has handed over more than 52,000 residential units in Dubai, reflecting a solid belief by the market in Emaar’s brand and robust project execution capabilities. By the end of 2021, over 24,500 units remain under development within the UAE, with a revenue backlog exceeding AED 28.616 billion. The Group is a high cash flow generating business, with significant contribution to the overall balance sheet strength of its parent Emaar Properties PJSC.

Emaar Development PJSC is amongst the largest master planning developers in the UAE and takes great pride in transforming Dubai’s landscape since inception. The Group’s portfolio consists of premier integrated lifestyle communities, centred around iconic assets, a unique offering that creates a halo around its brand, driving sustainable demand for its assets and long-term value for the Group’s stakeholders. The Group is behind iconic freehold master-planned communities in Dubai, including Emirates Living, Downtown Dubai, Dubai Marina, and Arabian Ranches, all of which are among Emaar’s trophy

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communities. The Group’s strong balance sheet is supported by a sustainable credit profile with a comfortable Net Debt to Equity ratio and Debt Coverage ratio.

and major landowners of Dubai, giving the Group access to desirable land banks across the UAE using a land acquisition model that requires minimum upfront cash payments.

mix, where the Group’s development expertise provides a significant upside potential, supported by its capexlight approach to funding project development yielding above normal returns. For more on the Group’s Business Model, see page 18 “Our Business Model.”

Over the years, Emaar Development has positioned itself as the preferred development partner in Dubai. The Group is recognised for its superior quality and consistent delivery. Its credibility has enabled partnerships with Government Related Entities (GREs)

As a result of its astute financial planning and vast headroom capability for fund raising, the Group has delivered consistent growth in difficult market environments. This success can be attributed to Emaar’s beneficial portfolio

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MANAGEMENT DISCUSSION & ANALYSIS

Management Discussion & Analysis

Financial Overview for 2021

An overview of the Consolidated Results for 2021

An overview of the Consolidated Results for 2021
Financial Summary
AED Million 2021 2020	% Change
Revenue 15,602 9,758	60% YoY
Gross Proft 5,735 3,478	65% YoY
Gross Proft Margin % 36.8% 35.6%	Upby1.2%
EBITDA 4,389 2,318	89% YoY
EBITDA Margin (%) 28.1% 23.8%	Upby4.3%
PAT attributable to Owners 3,244 1,657	96% YoY
Proft Margin (%) 20.8% 17.0%	Upby3.8%

Important Consolidated KPIs for 2021

AED ~27.4 Bn Overall Property Sales (including sales related to nonconsolidated JVs & JDA)

AED ~4.4 Bn

units 4,700 Residential units delivered in 2021 units

EBITDA

AED

335% Growth in Property Sales compared to 2020

52,000 Residential units delivered since inception

~3.2 Bn Total Net Profit

AED ~28.6 Bn Revenue Backlog to be recognised over next 1-4 years (Inclusive of numbers related to non-consolidated Jvs & JDA)

units 24,500 Residential units currently under development in the UAE

~1%

Default Rate of Sales Value

335%

YoY increase in property sales through Emaar Development (including sales related to nonconsolidated JVs & JDA)

Emaar Development PJSC achieved its highest ever property sales in Dubai, recording an increase of 335% to AED 27.440 billion (US$ 7.471 billion) in 2021.

65%

YoY growth in Gross Profit for Emaar Development

89%

Net Profit: Net profit increased by 96% in 2021 to AED 3.244 billion (US$ 883 million), as compared to net a Net Profit of AED 1.657 billion (US$ 451 million) in 2020.

Consolidated Financial Analysis for 2021

YoY increase in EBITDA for Emaar Development

Revenue: During 2021, Emaar Development PJSC achieved its highest ever property sales through its UAE build-to-sell property development business, in Dubai, recording an increase of 335% to AED 27.440 billion (US$ 7.471 billion) (inclusive of sales related to non-consolidated JVs & JDA) compared to 2020 propelled by strong rebound in the real estate market in Dubai. As a result, the Group’s Revenue for 2021 increased by 60% to AED 15.602 billion (US$ 4.248 billion) compared to 2020.

96%

YoY growth in Net Profit for Emaar Development

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Gross Profit: Gross Profit: The increase in Emaar Development’s gross profit was led by an increase in revenue, as well as increase in margins. This was driven by strong property sales in premium segment such as land plots, single family homes and high-end apartments, having better margins, and resulting in higher gross profit, which rose by 65% to AED 5.735 billion (US$ 1.561 billion) for 2021, as compared to AED 3.478 billion (US$ 947 million) in 2020.

EBITDA: Emaar Development’s EBITDA increased substantially due to revenue growth and significant control over the expenses, which was achieved through stringent cost control measures. The EBITDA for Emaar Developments rose by 89% to reach AED 4.389 billion (US$ 1.195 billion) in 2021, compared to AED 2.318 billion (US$ 631 million) in 2020.

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Management Discussion & Analysis

AED Operational performance ~28.6 Bn for 2021 Revenue Backlog to be recognised over next 1-4 years Under the umbrella of Emaar Properties, (Inclusive of numbers related to non-consolidated JVs & JDA)

Under the umbrella of Emaar Properties, Emaar Development PJSC leads the group’s UAE based build-to-sale business. Emaar Development is a majority owned subsidiary of Emaar Properties, which AED has been listed on DFM since November 2017. As the leading master plan ~27.4 Bn developer in Dubai, Emaar Development has delivered over 52,000 residential Highest ever property sales in 2021 units since formation (inclusive of (Inclusive of numbers related to numbers related to non-consolidated JVs non-consolidated JVs & JDA) & JDA). Emaar Development currently has a gross land bank of c. 280 million sq. ft. in the UAE, and approximately 95% of the Emaar Development’s projects under construction in the UAE have successfully been absorbed by the market. The Group has also been ~4,700 successful in building its credibility Units delivered in 2021 through establishing long lasting (Inclusive of numbers related to partnerships with Government Related non-consolidated JVs & JDA) Entities (GREs).

~24,500 Residential units under construction (Inclusive of numbers related to non-consolidated JVs & JDA)

~4,700 ~280 Mn sq. ft. Units delivered in 2021 Land Bank (GLA) (Inclusive of numbers related to (Inclusive of numbers related to non-consolidated JVs & JDA) non-consolidated JVs & JDA)

Strategic future plans and objectives for the Emaar Development business:

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----- Start of picture text -----

1 2 3 4 5
Leverage on the Provide ‘City within Attaining Marketing to Product Innovations,
existing master a city’ experience to Environment Social International Well-planned
community discerning customers and Governance Customers Execution & Delivery
developments to (ESG) excellence
launch new projects
6 7 8 9 10
Access to premium Expansion and Return on Capital Earn development Conserved cash to
land through JV/JDA penetration of Emaar Accretive - lower profit share and be used for judicious
with GREs Brand in existing and capital (minimum project management purchase of prime
new markets over immediate cash fees land
longer term outlay for land
purchase)
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During 2021, Emaar Development delivered over 4,700 residential across prime locations including Dubai Hills Estate, Dubai Creek Harbor, Downtown Dubai, Dubai Marina, Emaar South, and Emaar Beachfront.

Projects launched in 2021

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Beach Mansion in
Emaar Beachfront
Palace Beach Residence in Emaar
Beachfront
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Grand Bleu Tower in
Emaar Beachfront
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Grove in Dubai Creek Harbour

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MANAGEMENT DISCUSSION & ANALYSIS

Management Discussion & Analysis

Projects launched in 2021 (cont.)

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Majestic Vistas inspired by Automobili Lamborghini in Dubai Hills Estate

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Palm Hills with Elie Saab in Dubai Hills Estate

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Golf Place Terraces in Dubai Hills Estate

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Nara in The Valley
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Caya at Arabian Ranches III

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Elie Saab at Arabian Ranches III

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Bliss at Arabian Ranches III

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June & June II at Arabian Ranches III,

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MANAGEMENT DISCUSSION & ANALYSIS

Management Discussion & Analysis

Summary of the financial position as at the end of 2021

AED Million	2021 2020	% Change
EPS (AED/Share)	0.81 0.41	98%
Total Equity Incl Minority Interest	16,415 13,500	22%
Cash	5,689 3,350	70%
Debt	3,259 3,711	(12%)
Net Debt	(2,430) 361	NA

Emaar Development has worked to ensure that it has adequate financing consistently over recent years to achieve availability to support business a robust financial footing, positioning requirements and new opportunities. it well to meet the challenges of 2021 and 2022 and to pursue market opportunities. The Group has benefitted from the steps it has taken over several years to strengthen its financial position.

Consolidated cash flows movements during for 2021

Consolidated cash fows movements during for 2021
(AED bn)	2021	2020
Net cash fows from operatingactivities	4,197	428
Net cash fows (used in)/ from investingactivities	52	(8)
Net cash fows used in fnancingactivities	(1,952)	(1,041)
Cash and Cash equivalents at the beginningof theyear	3,308	3,929
Cash and cash equivalents at the end of theyear	5,605	3,308

The scale of Emaar Development’s business, combined with the quality of its assets and a healthy debt to equity ratio, means that the Group is able to approach a diverse range of debt providers to arrange finance at attractive terms. Easy access to the equity and debt markets allows the Group to take advantage of opportunities when they arise. It monitors its debt requirement by reviewing current and projected borrowing levels, available facilities, debt maturities and interest rate exposure. The Group undertakes sensitivity analysis to assess the impact of proposed transactions, movements in interest rates and changes in property values on key balance sheet, liquidity and profitability ratios.

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In addition to Emaar Development’s drawn debt, the Group always aims to have a good level of undrawn, committed, unsecured revolving bank facilities to maintain adequate liquidity. These facilities provide financial liquidity, reduce the need to hold resources in cash and deposits, and minimise costs arising from the difference between borrowing and deposit rates, while reducing credit exposure. The Group arranges these revolving credit facilities in excess of its committed and expected requirements

Business Outlook

Emaar Development predominantly operates in the markets of the UAE, which have coped reasonably well with the pandemic to witness resurgent growth, with strong market dynamics and drivers for future real estate demand. While regional global conflicts and oil prices volatility are cause for concern on their impact on global growth, Emaar Development’s management is optimistic about the medium and long-term business prospects of the Group.

As one of the most dynamic and growing markets in the world, Dubai’s property market is a testament to the strength and resilience of the UAE as a nation and Emaar is proud to lead the way forward. Emaar Development’s portfolio of prime, highly desirable ‘build-to-sell’ assets are set to continue to benefit from the fundamental shifts occurring within the real estate market as well as the Group’s approach to portfolio and pricepoint optimisation. This change is now accelerating to place the emirate in far stronger position than many other global gateway cities, which are still grappling with the impacts of the pandemic.

The Group’s significant revenue backlog of AED 28.616 billion (including joint ventures and development agreements), robust development pipeline and ~280Mn sq.ft. of available land bank are the backbone for delivering sustainable future growth. The Group intends to continue to focus on setting benchmarks in design, build quality, choice of amenities and further strengthen its

Emaar has a substantial development pipeline and land bank, which leaves Emaar wellpositioned to execute on its clearly defined strategy and to successfully deliver attractive, sustainable returns for all stakeholders.

customer centric approach. Emaar its various capital resources and value Development’s successful strategy to creation business model (page 22). With unlock the true potential of property a solid revenue backlog the Group has development business has been strong revenue visibility reflecting the aimed at delivering long-term value strength of the Group’s financial position for our shareholders, and the Group to sustain strong revenue, profitability, will continue to focus on its core and shareholders’ return for the competencies. Emaar Development foreseeable future. will remain focused on future growth through landmark new project launches, digital innovation, while consistently adding value to Dubai’s property sector For and behalf the Board of Directors of in 2022.

Emaar Development PJSC:

Today, Emaar Development has a substantial development pipeline and land in the UAE, which, when combined with its high-quality loyal customer base and expanding talented and dedicated team, leaves the Group well-positioned to execute on its clearly defined strategy and to successfully deliver attractive, sustainable returns for all stakeholders. With strong Strategic Pillars (pages 36-46) to drive business growth ahead, the Group is well placed in terms of

Mr. Adnan Kazim Chairman

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MANAGEMENT DISCUSSION & ANALYSIS

Risk Management in Emaar

With the fast paced, continuously evolving business environment, we understand the importance of systematically assessing our risk exposure to help build resilience and take agile, yet informed, business decisions. We also understand that holistic risk management underpins the Group’s ability to not only successfully deliver on strategic objectives but to also safeguard the values and interest of stakeholders.

In this regard, we have adopted a comprehensive enterprise-wide risk management (ERM) framework that integrates both external best practices, business objectives and other internal elements unique to the organization. This embedded risk management approach is designed to be a collaborative process that utilizes the 3 lines of defense methodology. Our risk management process is monitored by an established board nominated Risk Committee and is supported by a dedicated ERM team.

Holistic Risk Management Process:

Our risk management principals are reinforced by risk appetite statements that establish the maximum amount of risks that should be undertaken in pursuit of our objectives. These risk appetite statements are aligned with our strategic objectives & business context and are operationalized through our continuous risk monitoring mechanisms.

Along with established Risk Appetite statements, our integrated approach to risk management uses measuring, monitoring and mitigation strategies as an interrelated system and leverages data insights, where appropriate. We have adopted a holistic approach to identify and assess both process/ operational risks and enterprise wide risks. Each risk is assessed and prioritized based on an impact and likelihood matrix vis-à-vis our established risk appetites and key risk indicators (KRIs) performance. The risks along with their mitigation plans are identified and continuously monitored across all levels of the organization. This approach helps us to determine an interrelated and holistic risk profile and allows for organization-wide visibility.

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The Risk Management Process
Functional / Process Risks
ERM Key business risks
identified with leaders
ERM/ Key Business Unit Risks
Reinforced with analysis Objective criteria to analyze
of external and internal and report critical risks
information supported with management
discussions
Critical Enterprise Risks
Reviewed by Risk Committee
Horizon scanning Data driven deep Supported with
to identify key dive analysis of portfolio views and
emerging risks critical risks and trajectory analysis
KRIs
Comprehensive risk process across the 3 lines of defense –
Considers risk appetites, KRIs, and, internal & external information.
Assessed Vis-à-Vis Risk Appetites
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In line with our continuous pursuit of business improvement and efficiency, we are actively transforming our risk processes and maturity. This includes considering and implementing practices to bolster our internal control environment and embed the principles of robust risk management into day-to-day operations. Our ERM team continues to support the systematic implementation of our ERM framework and regularly engages with the first line of defense to ensure that risks are proactively managed.

Key Risks and Mitigation

	Description	Mitigation	Read more
Market	Unable to identify and respond	Emaar reviews its business unit and geographical location	Management
Cyclicality	to changing market dynamics	strategies, and accordingly monitors business performance	Discussion Analysis
		across its portfolio on a regular basis. Where required it takes	(page 66); Our
		agile risk informed decisions to realign its business trajectory	Business Model
		vis-à-vis changing market and economic trends.	(page 18); How we
			create value
		Further, the risk management process includes research and data driven horizon scanning exercises to identify and mitigate	(page 22)
		anymaterial adverse events.
Access to	Unable to maintain adequate	Emaar utilizes liquidity monitoring and management controls	Focus area 2:
liquidity	levels of liquidity to support	to ensure that the Group has continuous access to capital. Tis	Financial Capital
	Group operations and strategic	includes maintaining an investment grade rating, earmarking	(page 54)
	ambitions	cash against project development costs, and ensuring active
		lines of credit with reputable fnancial institutes.
		Further monitoring processes are embedded to ensure that
		changes in the group’s liquidity profle are timely identifed
		and mitigated.
Operational	Failure to provide an	Emaar is committed to the health, safety and wellbeing of our	Focus area 1: Health
Risk and	environment that promotes	people. Trough various initiatives that target both physical	& Safety (page 52);
Hazards	health, safety and wellbeing	safety and health & wellbeing, we empower our people to	Focus area 4: Our
	impacts our ability to achieve	operate in a consistent standard across all our operations.	people (page 58)
	our corporate and social
	responsibilities
Technology	Failure of cyber resilience	Physical and data security continue to be key focus areas	Responding to
	and defense systems.	globally. We invest in preventative technology and education	Customer Privacy
	Leakage, misappropriation or	of employees to achieve a sustainable security culture.	(page 31)
	unauthorized storage of data.
Talent &	Inability to attract, retain and	To deliver the desired level of performance, we continue to	Focus area 4: Our
People	upskill key talent necessary to	invest in growing our core capabilities through active talent	people (page 58)
management	deliver strategic objectives; or	recruitment, people management and targeted professional
	lack of scalable processes to	development.
	support predictable growth.	Our talent strategies emphasize our focus on attracting,
		retaining and growing the best people. Our processes are
		designed to be consistent, scalable and efective.
Regulatory	Failure to actively comply	Emaar has embedded compliance controls throughout their	Corporate
Compliance	with internal and external	operational and strategic processes.	Governance Report
	regulations	It has further developed a multi-tiered governance structure,	(page 84-113)
		with established board nominated committees and policy
		documentation. Ongoing compliance is monitored by the
		Audit Committee, Compliance Ofcer, Internal Audit, and
		Legal teams.

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Section 55
Corporate Governance Report 84 - 113
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EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021
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EMAAR PROPERTIES PJSC – INTEGRATED ANNUAL REPORT 2021
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CORPORATE GOVERNANCE REPORT FOR 2021

Board of Directors

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Dr. Aisha Bint Butti Bin Bishr Vice-Chairman

Mr. Adnan Kazim Chairman

Non-Executive, Independent Serving on the Board for 4 years Profile on page 90

Non-Executive, Independent Serving on the Board for 4 years Profile on page 90

M Audit Committee M Nomination and Renumeration Committee C Committee for monitoring Insiders Trading C

Investment Committee

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Mr. Jamal Bin Theniyah Board Member

Mr. Mohamed Ali Alabbar Executive Board Member

Executive, Non-Independent Serving on the Board for 4 years Profile on page 91

Non-Executive, Non-Independent Serving on the Board for 4 years Profile on page 92

C Investment Committee M

Investment Committee

Mr. Ahmed Jawa Board Member Non-Executive, Non-Independent Serving on the Board for 4 years Profle on page 92 Nomination and Renumeration Committee M Investment Committee M
		Mr. Abdulla Al Awar Board Member Non-Executive, Independent Serving on the Board for 4 years Profle on page 93
		Audit Committee C Nomination and Renumeration Committee M

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Member M

Chairperson C Committees Audit Committee Nomination and Renumeration Committee Investment Committee Committee for monitoring Insiders Trading

Mr. Khalid Al Halyan Board Member

Non-Executive, Independent Serving on the Board for 1.6 years Profile on page 94

Audit Committee M

Investment Committee M

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CORPORATE GOVERNANCE REPORT FOR 2021

Corporate Governance Report for 2021

This report is issued annually by Emaar Development PJSC (the “ Group ”) pursuant to the provisions of Article 77 of Resolution No. (3/R.M.) of 2020 issued by the Chairman of the Board of Directors of the Securities and Commodities Authority concerning the Approval of Public Joint Stock Companies Governance Guide (“ Governance Guide ”).

• 1 A clarification of the procedures adopted by the Group to satisfy the requirements of the Governance Guide in 2021, and how they were implemented:

Regarding the procedures adopted by the Group to satisfy the requirements of the Governance Guide in 2021, we would like to confirm that the corporate governance framework adopted by the Group in 2021 complied with all main requirements, and provisions, of the Governance Guide.

As for the Group’s approach in applying the provisions of the Governance Guide, the Group implemented the various policies adopted by the board of directors of the Group (“ Board of Directors ” or “ Board ”) in relation to governance, taking into account the interests of the Group, the shareholders and all other stakeholders, as follows:

• A. Board of Directors:

The composition of the Board of Directors and its terms of reference comply with the requirements of the Commercial Companies Law, the Governance Guide and the articles of association of the Group (“ AOA ”), as well as with other relevant laws and resolutions. Best practices and standards related to the functioning of the Board are also applied to the extent possible to increase its effectiveness.

The Group adheres to the terms of reference set out by the Board of Directors in relation to its composition, operating procedures and responsibilities as follows:

1. The Board of Directors has generally complied with the main requirements of its terms of reference with regard to various matters including, but not limited to, the number of Board members and the balance required among its members according to the specified standards, the terms of membership and the responsibilities of the chairman of the Board (“ Chairman ”), and the number of meetings to be held, the quorum required for meetings, and the majority needed to make decisions, the conditions for decisionmaking and the technical skills required for

membership of the Board.

1. The independent Board members confirmed their independent status during the year 2021 and the Group verified that the legal requirements regarding the minimum number of independent Board members are satisfied.

2. The Board of Directors recommended the payment of an annual bonus to directors for the year 2021 as outlined in section c.2 of this report, subject to approval by the Group's annual general meeting in accordance with the relevant laws, regulations and the AOA.

3. The Board acknowledged the responsibilities, duties, powers and other requirements necessary for its functioning through the terms of reference of the Board of Directors.

4. The duties and responsibilities of the Chairman of the Board of Directors include the duties enumerated in the Governance Guide and have been specified in the terms of reference of the Board of Directors.

5. The terms of reference of the Board of Directors outline the duties of the Group's management toward the Board of Directors. These duties include, but are not limited to, organizing an induction program for new Board members and providing the Board with regular information to enable the Board to carry out its duties efficiently in accordance with the relevant laws, regulations and the Group's policies.

6. Some of the powers of the Board of Directors are delegated by way of a clearly defined authority matrix approved by the Board. This authority matrix is periodically reviewed and communicated to the relevant members of the management to comply with it.

7. Board members are subject to special disclosure obligations, including, but not limited to, disclosure of any positions they hold in other joint stock companies, any change to their independent status, dealings in Group's securities and any changes to the information they are required to submit annually as soon as such changes occur. Moreover, a Board member is required to provide full disclosures in respect of any matter being reviewed by the Board or any of its committees in which he has a conflict of interests.

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CORPORATE GOVERNANCE REPORT FOR 2021

Corporate Governance Report for 2021

B. Committees of the Board of Directors:

The Board of Directors established four committees, as follows:

(1) Audit Committee

(2) Nomination and Remuneration Committee

(3) Investment Committee

(4) Committee for monitoring Insiders Trading

Other committees may be established as may be decided by the Board. Each Board committee acts in accordance with its own terms of reference.

All terms of reference of the committees are approved either by the Board of Directors or by the concerned committee and these terms of reference are all consistent with the requirements of the Governance Guide. The terms of reference of the Board committees include, but are not limited to, the role of the committee, the requirements for its constitution, the duration of its membership, the duties and powers of its members and its operating procedures.

The requirements relating to independent and nonexecutive members in the composition of the Audit Committee and the Nomination and Remuneration Committee as provided in the terms of reference of these committees have been complied with.

C. Internal Control

The Board of Directors has established an internal control system in the form of an internal control policy. This system aims to assess the methods and procedures of risk management, ensure proper application of the Governance Guide, comply with applicable laws and regulations and internal policies, and review the financial information used in the preparation of the Group's financial statements. The Audit Committee assists the Board in overseeing the application of the internal control system, and the Internal Control Department coordinates the day-today operations related to this system.

The internal control policy requires that the Board of Directors periodically reviews the Group's internal control system.

D. External Audit

The external auditor is selected in accordance with the requirements of the Governance Guide, the AOA and the applicable laws and regulations.

Once the general meeting approves the appointment of auditors, the Audit Committee informs the external auditors of the conditions and restrictions related to their tasks, considering the requirements of the Governance Guide.

E. Code of Professional Conduct

The Group adopted a code of professional conduct outlining the ethical standards of the Group, its duties toward different stakeholders, its due diligence obligations and its commitment towards compliance with all relevant laws and regulations.

Members of the Board of Directors, employees and internal auditors abide by these rules in the performance of their duties.

F. Policy for dealing in securities issued by the Group

The Board of Directors established a policy governing all dealings in securities issued by the Group by Board members and employees to ensure compliance with applicable laws and regulations.

This policy requires Board members and employees to comply with the restrictions on dealing in securities, outlines the disclosure requirements related to permitted transactions and clarifies the prohibited acts in accordance with the provisions of such policy.

G. Policy Outlining Shareholders' Rights

The Board of Directors established a policy clarifying the shareholders' rights including those certain rights provided by applicable laws and regulations and the rights stated in the AOA.

The purpose of this policy is to enable and encourage the shareholders to exercise their rights effectively.

H. Disclosure Committee

A Disclosure Committee has been established by the Group comprising senior members of the management team. The objectives of the Disclosure Committee are to develop systems to ensure compliance with applicable laws and regulations related to disclosure, upholding the Group's image, providing transparency to the Group's current and future shareholders and other stakeholders and preventing exploitation of the stock market.

2 Statement of ownership and transactions of Board of Directors (Board) members and their spouses, their children in the group securities during 2021:

There are neither ownership nor transactions for the Board members or their spouses or children in the Group’s securities during the year of 2021.

3 Composition of the Board of Directors:

• a. The Board of Directors of the Group consists of seven members (7) as follows:

Name/Designation	Category (Executive/Non-	Memberships and Positions	Date of Appointment
	Executive, Independent/	in Other Joint Stock
	Non-Independent)	Companies (in UAE) and
		Government Entities
Mr. Adnan Kazim	Non-Executive, Independent	Emirates - Chief	Date of Appointment: 20
Chairman		Commercial Ofcer	November 2017
			Duration of his term as a
			board member: 4years
Dr. Aisha Bint Butti Bin	Non-Executive, Independent	Te Computer System	Date of Appointment: 20
Bishr		Advisory Board – Member	November 2017
Vice Chairman		Higher Colleges of	Duration of her term as a
		Technology Board of	board member: 4 years
		Trustees – Member
Mr. Mohamed Ali	Executive, Non-Independent	Emaar Properties PJSC –	Date of Appointment: 20
Alabbar		Managing Director	November 2017
Executive Board Member		Emaar Malls PJSC – Board	Duration of his term as a
		member until 21 November	board member: 4 years
		2021 (date of Merger
		between Emaar Properties
		PJSC and Emaar Malls
		PJSC)
Mr. Jamal Bin Teniyah	Non-Executive,	Emaar Properties PJSC –	Date of Appointment: 20
Board Member	Non-Independent	Chairman	November 2017
			Duration of his term as a
			board member: 4years
Mr. Ahmed Jawa	Non-Executive,	Emaar Properties PJSC –	Date of Appointment: 20
Board Member	Non-Independent	Vice Chairman	November 2017
			Duration of his term as a
			board member: 4years
Mr. Abdulla Al Awar	Non-Executive, Independent	Emirates International	Date of Appointment: 20
Board Member		Accreditation Centre (EIAC)	November 2017
		– Board Member	Duration of his term as a
		Emirates NBD Real	board member: 4 years
		Estate Investment Trust
		– Oversight Committee
		Member
		Knowledge Fund
		Establishment - CEO
Mr. Khalid Al Halyan	Non-Executive, Independent	Dubai Aviation City	Date of Appointment: 21 June
Board Member		Corporation – Chief Audit	2020
		Executive	Duration of his term as a
			board member: 1.6years

Experience and Qualifications of Board of Directors:

The Members of Board of Directors have the below experience and qualifications:

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CORPORATE GOVERNANCE REPORT FOR 2021

Corporate Governance Report for 2021

Mr. Adnan Kazim, Chairman:

Adnan Kazim is currently the airline’s Chief Commercial Officer reporting to the President of Emirates Airline.

He leads Emirates’ Commercial Operations across the airline’s vast network of nearly 160 destinations in 86 countries including major departments in Dubai such as e-Commerce, Retail & Contact Centres, the Emirates Skywards loyalty programme and Emirates SkyCargo.

He also heads the airline’s Strategic Planning and Revenue Optimisation teams, which are critical functions and his teams play an integral role that support the airline’s commercial success.

Adnan joined Emirates in 1992. His career graph rose quickly, and he went on to successfully lead the airline’s commercial regions being appointed in senior management roles that included Senior Vice President Gulf, M.E. & Iran and Senior Vice President Africa.

His vast experience helped him transition into a leadership role to shape the airline’s strategy of growth in the areas of fleet planning, market expansion and governmental relations. He most recently held the role of Divisional Senior Vice President, Strategic Planning, Revenue Optimisation & Aeropolitical Affairs.

Adnan graduated from the UAE University in Al Ain.

Adnan is on the Board of Emirates Airline Foundation, a non-profit charity organisation which aims to improve the quality of life for children and the dignity of children caught in extreme poverty worldwide.

Dr. Aisha Bint Butti Bin Bishr, Vice Chairman:

Her Excellency Dr. Aisha Bint Buti Bin Bishr is the vice chairman of Emaar Development board since Dec 2020. Bin Bishr is a global digital magnate and the former founding Director General of Smart Dubai in the United Arab Emirates. With the distinction of being the first woman to lead the transformation of a smart city globally, she has laid a robust foundation for upcoming talent and inspires youth towards building a better tomorrow through digitalisation.

Bin Bishr is considered an Emirati global ambassador for digitalisation being a renowned thought leader advocating the humanisation of technology to create better urban smart future. She is among the world’s most powerful women leaders in business and technology, with Forbes ME ranking her among the Middle East’s Top 10 most powerful businesswomen.

She was the Director General of the Smart Dubai Department, UAE between 2015-2020, the government entity entrusted with Dubai’s city-wide smart digital transformation by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

Dr. Aisha also led the creation of ‘The Smart City Index’ - the first-ever benchmark for smart city implementation across the globe in cooperation with ITU and the United Nations. As an acclaimed digital transformation and Smart Cities thought leader globally, she represented Smart Dubai in City Protocol Society, Smart City Expo World Congress and GSMA.

In addition to her responsibilities at Smart Dubai, Her Excellency was a member of the Dubai Council under the Government Development Track until July 2020. Her Excellency also was the Chairperson of the Dubai Future Council for Blockchain, which was launched as part of the Dubai Future Councils initiative by His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, to assess and develop the future of key industry sectors in Dubai over the next 50 years. Dr. Aisha also heads The Council of Happy Cities (part of the World Happiness Council), is the Chairperson of the SDG 11 Global Council, and is the only woman from the Middle East to be a member of the Gartner Global CIO Research Board.

Additionally, Her Excellency serves as a member of the World Economic Forum’s Global Future Councils and The Fourth Industrial Revolution’s Smart Cities Readiness Index Team – an initiative also led by WEF. Her Excellency is also a Board Member at the Higher Colleges of Technology, UAE and a member of Emaar’s Board Committee until Dec 2020.

Dr. Aisha was also a member of the board at the UAE AI Council, the Computer System Advisory Board, the Leadership Team for Smart Services and Digital Infrastructure, and she is a member of the Advisory Board of the College of Computing and Informatics at the University of Sharjah, the University of Wollongong, and the World Happiness Council.

Dr. Aisha co-led the creation of the U4SSC’s Key Performance Indicators (KPIs) for Smart Sustainable Cities (SSC) – the first-ever benchmark for smart city implementation across the globe, drafted in cooperation with the International Telecommunication Union and the United Nations. As an acclaimed digital transformation and smart cities thought leader globally.

Prior to her current role, Dr. Aisha served as Assistant Director General of Dubai Executive Office and Assistant Undersecretary of the UAE Ministry of Labour during her illustrious career. Throughout her 27-year experience in ICT development, Dr. Aisha committed herself to humanising digital transformation, from developing technologies to transforming human experiences.

Awards

The incredible work of Dr. Aisha is recognised globally. She has received numerous accolades which include, the ‘Digital Transformation Award’ at the Achieving Women Awards 2019, ‘Excellence in Strategic Leadership Award 2017’ by Entrepreneur Middle East’s Enterprise Agility Awards; Leadership in Digital Transformation by .GOV, ‘Outstanding Alumni Award 2017’ from The University of Manchester ME Centre; ‘Woman In Government’ Award at the Arab Women Awards 2016, ‘Woman in Public Sector Award’ from Global Women in Leadership Economic Forum 2015; ‘Community Service Medal 2013’ by Lt. General HH Sheikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior ; and the ‘Middle East Woman Leader in Corporate Management Excellence 2012’ by Middle East Women Leaders Excellence Awards.

In addition, she has been honoured by the Swedish Embassy, Trade Council, and Ericsson, in recognition of her role in implementing the Smart City Vision of Dubai’s leadership. In February 2020, Dr. Aisha was recognised as one of the Middle East’s Top 10 most powerful businesswomen by Forbes Middle East.

Education

• Orchestrating Winning Performance - OWP2014 Course

IMD Business School 2014

• Mohamed Bin Rashid Young Leadership Program

Mohammed Bin Rashid Programme for Leadership Development 2007-2009

• Public Finance Management, Strategy & Leadership of Public Finance

Mohammed Bin Rashid School of Government MBRSG 2007-2009

• Doctor of Philosophy (PhD), Management on Science, Technology and Innovation

University of Manchester - Manchester Business School 2004-2006

• Master of Philosophy (MPhil), Policy and Research on Engineering, Science and Technology University of Manchester - Manchester Business School 2004-2005

• Bachelor of Science (BS), Applied Science (Business Information Technology)

Higher Colleges of Technology 2001-2003

Career Key Milestones Timeline:

• Director General Oct 2013 – June 2020

Smart Dubai

• Assistant Director General

The Executive Office, Dubai Government

Jan 2012 - 2014

• Assistant Undersecretary for Support Services Ministry of Labor, UAE Mar 2010 – 2013

• Director of Corporate Excellence

The Executive Council, Government of Dubai Feb 2009 – Jan 2010

• Head of IT

The Executive Council, Government of Dubai Jan 2008 – Feb 2009

• Acting Director IT

Department of Tourism & Commerce Marketing April 2001 – May 2007

• Web Content Developer

• Department of Tourism & Commerce Marketing 2001-2007

• TCO Supervisor

• Etisalat 1994 - 2001

Detailed achievements and milestones captured in LinkedIn: https://www.linkedin.com/in/dr-aisha-binbishr-b5639b8

Mr. Mohamed Alabbar, Executive Board Member:

Founder & Managing Director of Emaar Properties https://www.emaar.com/

Founder & Director of Noon.com https://www.noon.com/

Chairman of Eagle Hills https://www.eaglehills.com/

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Chairman of Americana Group https://americana-group.com/

Mr. Mohamed Ali Rashed Alabbar is a global entrepreneur with active interests in real estate, retail, hospitality, e-commerce, technology, logistics, F&B and venture capital.

Experience

Since 1997, he has been at the forefront of global real estate, leading marquee real-estate development companies such as Emaar Properties (developer of world’s tallest building) and Eagle Hills (leading emerging markets real estate developer). He has spearheaded the growth of Emaar Properties attaining unmatched track record of successfully developing iconic futuristic residential, retail, entertainment, hospitality & leisure assets transforming the lifestyles of people globally. Over the years he has developed world-class mixed used projects, including his retail businesses, across 20+ markets of Middle East, North & Sub Saharan Africa, Central & Eastern Europe and South & South East Asia and US.

Business Acumen

In addition, he has driven the growth of several regional players into world-renown sector champions including Americana Group (a multibillion-dollar food business, the largest integrated food group in the Middle East) and noon.com (the leading e-commerce platform in the region). He is also shareholder in Artstreet Limited which owns interests in real estate business. He is the Chairman of Zand, one of the world’s first combined digital corporate and retail bank to launch from the UAE.

Education

A graduate in Finance and Business Administration from the Seattle University in the US, also holds an Honorary Doctorate from Seattle University, an Honorary Doctorate from London School of Economics and Political Science and an Honorary Doctorate from Sun Moon University in South Korea.

Mr. Jamal Bin Theniyah, Board Member:

Mr. Jamal Bin Theniyah, born in 1958, holds a bachelor degree in Public Management.

Mr. Bin Theniyah joined Port Rashid in October 1981 and have progressed through the management up until May 1991 when Dubai Government merged port Rashid with Jebel Ali port under Dubai Ports Authority (DPA) and he has been appointed as Assistant Managing Director.

In the year 1999, one of the first initiatives of Mr. Theniyah along with DPA chairman in the international port operation market encompassing,

Beirut, Djibouti and Jeddah led to the creation of Dubai Ports International (DPI).

In 2001 he has been appointed as a Managing Director to master plan the development of Jebel Ali as one of the biggest terminal in the world increasing its capacity from 20 million TEUs at that time to 50 million TEUs.

In 2004, Mr. Bin Theniyah played a major role in the acquisition of Sealand world terminals to give DPI a real international footprint.

Jamal Majed Bin Theniyah is the Co‐ Founder of DP World, the 4th largest port operator in the world with a capacity of 100 Million TEUs as in the year 2006, DPI conclude the acquisition of P&O Ports to become the 3rd largest port operator in the world and DPW was created to become a real international port operator group worth USD 22 billion.

In 2006, Mr. Bin Theniyah has been appointed a Vice Chairman and GCEO of Ports & Freezone world, which include DP World, Freezone world and P&O Ferries until his retirement in January 2017.

In 2008, following the global crisis, Mr. Bin Theniyah led the restructuring of Dubai World, a conglomerate in the real estate (Nakheel), private equity (Istithmar) and Dry dock world.

Since 2012, Mr. Bin Theniyah sits as an independent member on the board of Directors of Emaar Properties, and have previously served as a board member in different entities.

In September 2017, Mr. Bin Theniyah has been elected as a non‐executive board member of Emaar, the Economic City.

Mr. Bin Theniyah is a common speaker in the international ports and maritime conferences and is amongst few who won 3 international prestigious awards:

In 2006, he won Lloyds list personality of the year,

In 2007, he won the personality of the year by Seatrade,

In 2010, he won the highest lifetime award by Seatrade “the life time achievement award”.

Mr. Bin Theniyah is known and well respected by the major international ports operators and shipping lines and has the knowledge of developing large scale port operation and logistic zone including the business knowledge process in the shipping line routs and rotations.

Mr. Ahmed Jamal Hassan Jawa, Board Member:

Mr. Ahmed Jawa embodies the Middle East’s success story. As Chairman of Starling Holding Limited, Mr. Jawa has continually set business and entrepreneurial excellence standards.

The renowned Saudi Arabian entrepreneur established Starling Holding, an international investment group dedicated to private equity and venture capital, just after graduating from college, when private equity was in its infancy in the Middle East region.

Mr. Jawa’s impeccable corporate expertise in oil and gas, healthcare, hospitality, home entertainment, and real estate development helped grow Starling Holding into a global investment leader, with business interests in the Middle East, Europe, USA, North Africa, and South Asia.

His business acumen was recognised in 1996, at the highest level, when he was honoured as one of the ‘Global Leaders of Tomorrow’ at the World Economic Forum in Davos, Switzerland.

Mr. Jawa’s expertise and entrepreneurial skills have seen him become a trusted advisor for global companies that operate in the Middle East.

He is the Vice-Chairman of Emaar Properties, the developer of global icons including Burj Khalifa and Downtown Dubai, and Chairman of its Risk Committee. He is also a member of its Audit Committee and its Nomination & Remuneration Committee and a permanent member of its Investment Committee, offering advice on Emaar’s global expansion plans.

Mr. Jawa is also a Board Member of Emaar Development PJSC, the leading developer of residential and commercial build-to-sell assets in the UAE, and a member of its Investment Committee and Nomination & Remuneration Committee.

Mr. Jawa is Chairman of Emaar Middle East (KSA), developer of high-value projects in the Kingdom of Saudi Arabia.

In addition, Mr. Jawa is the Chairman of Emaar Turkey and serves on Emaar Misr’s board in Egypt. He is also the Chairman of its Audit Committee and a member of its Investment Committee.

He is on the Board of RAK Petroleum, an Oslo Børslisted oil and gas investment group and serves as the Chairman of its Audit Committee.

Mr. Jawa is also on the Board of National Pipe Group Ltd (NPC), a joint-venture between Saudi-based enterprises and Sumitomo Corporation Group of Japan that manufactures and supplies quality pipes for the oil, gas, water and construction services.

He is a former member of the Board of ‘Emaar, The Economic City’ and its Nomination & Remuneration Committee. A public joint-stock group listed on the Saudi Stock Exchange (Tadawul), ‘Emaar, The Economic City’ is undertaking the modernization and execution of King Abdullah Economic City, the largest

master-planned community of its kind in the Middle East region.

Mr. Jawa was previously Chairman of Disney Jawa Enterprises, which introduced a range of Walt Disney licenced products to the Middle East region. He was the Chairman & CEO of Stallions Home Video, which redefined home entertainment in the region, and Coflexip, a joint venture with France’s Elf Aquitane, to lay underwater pipes for crude oil distribution.

Mr. Jawa holds a Master’s in Business Administration (MBA) and a Bachelor of Science in Business Administration, from the University of San Francisco. He is fluent in Arabic, English, and French.

Mr. Abdulla Mohammed Al Awar, Board Member:

Abdulla is currently the Chief Executive Officer of Dubai Government’s Knowledge Fund Establishment.

Formerly, Al Awar was the Chief Executive Officer of the Dubai International Financial Centre Authority in 2009. Throughout his 8-year tenure in DIFC, starting in 2004, Al Awar held multiple executive positions, capitalizing on his exceptional skills in the areas of Strategic planning, Management operations and financial supervision to help develop the Dubai International Financial Centre to be a global financial Centre.

In 2013, Al Awar was appointed the CEO of the Dubai Islamic Economy Development Centre. From its inception, the Centre was responsible to implement the insightful vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, Ruler of Dubai for making Dubai the global capital of the Islamic Economy sectors. The Centre partnered with all the competent entities in the public and private sectors in implementing the strategy of “Dubai: The Capital of Islamic Economy” by innovating initiatives that contribute to the development of the economic diversification in Dubai such as Islamic finance, the Halal products industry and the Islamic lifestyle sectors.

Al Awar is a Board Member of Emaar Development PJSC and the Emirates International Accreditation Centre. He is also a member of the Oversight Committee of the ENBD REIT. He has previously also served as a member of several committees and councils in Dubai including the Economic Committee of the Executive Council of the Emirate of Dubai, the Dubai Free Zones Council, Borse Dubai and the Investment Committee of the ENBD REIT.

Abdulla holds a Bachelor’s Degree of Science in Business Administration from the University of Colorado at Boulder in the United States. He is also

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a graduate of the Mohammed Bin Rashid Program for Leadership Development, a Dubai Governmentrun Executive Education program for executives in the public and private sectors in Dubai, which was conducted in the affiliation with Cranfield University in the UK, IMD and INSEAD.

Mr. Khalid Salem Al-Halyan, Board Member:

Mr. Khalid Salem Al Halyan is a business professional with over 38 years of senior level experience spanning a number of industries. Mr. Khalid Al Halyan is currently the group Chief Audit Executive at Dubai Aviation City Corporation (DACC). His career has seen him hold senior positions at the UAE Central Bank, the Department of Economic Development (DED), Dubai, and in the aviation industry where he played a key role in the establishment of the new Dubai Airport Free Zone (DAFZA) and head up the Finance Department, before moving on to establish the Group Internal Audit & Risk Assessment (GIARA) function at DACC. Mr. Khalid Al Halyan has also supported the establishment of DED, Emaar Properties, the UAE Internal Audit Association, the UAE Golf Association and restructured projects for DUBAL, Dubai World Trade Centre, Dubai Civil Aviation, UAE Central Bank Banking Supervision, and realized the construction of a new facility for the Al Noor Special Needs Centre in Dubai. He currently serves as Vice President of the UAE Internal Audit Association (affiliated to the Institute of Internal Auditors (IIA), USA), is Chairman of Al Noor Special Needs Centre in Dubai, Chairman of Emaar South, Dubai, board member of Emaar Development, Board member of Amlak Finance PJSC, and he has recently become a member at the Board of Trustees of American University in the Emirates. Mr. Khalid Al Halyan holds an MBA degree from Bradford University in the UK, and a BBA from the UAE University, Al Ain.

b. A clarification on women’s representation in the Board of Directors in 2021:

Dr. Aisha Bint Butti Bin Bishr represents women in the Board of Directors for the year 2021 and was originally appointed by the constitutive general meeting of the Group on 20 November 2017 and reelected on 21 June 2020.

The Group further confirms its continuous support and commitment to provide equal opportunities to women. The Group has always believed in the capabilities, skills and expertise of women and this was demonstrated through the appointment of women in the highest positions within the management of the Group.

c.1. Total remuneration paid to members

of the Board of Directors of the Group for the year 2020:

The total remuneration of the Board members of the Group for the year 2020 was paid as approved by the annual general meeting of the Group and set out in 2020 Corporate Governance Report of the Group.

c.2. Total remuneration proposed to be paid to members of the Board of Directors for the year 2021:

The Board of Directors propose six hundred fifty thousand UAE Dirhams (AED 650,000) for each non-executive director as the remuneration to be paid to them for the year 2021, subject to approval by the annual general meeting of the Group.

c.3. Allowances paid to Board members during the year 2021 for attending meetings of Board committees:

It was decided to pay an amount of three hundred eighty thousand UAE Dirhams (AED 380,000) as allowances for attending meetings of the Board committees for the year 2021 as shown in Annex B-1, at the rate of twelve thousand UAE Dirhams (AED 12,000) per meeting for chairmen of committees and ten thousand UAE Dirhams (AED 10,000) per meeting for members of the committees. No allowances will be paid to any executive Board member for attending meetings of committees. Allowances were distributed as shown in Annex B-1.

c.4. Details of the additional allowances,

salaries or fees received by a Board member other than the allowances for attending the committees and their reasons:

There are no additional allowances, salaries or fees received by a Board member other than the allowances for attending the committees.

• d. Number of Board Meetings held

during the year of 2021:

The Board of Directors held four (4) meetings during the fiscal year of 2021 on the following dates to discuss matters that do not require disclosure as per the relevant disclosure and transparency regulation issued by the Securities and Commodities Authority:

• 3 March 2021

• 14 July 2021

• 20 October 2021

The personal attendance of Board members is indicated in Annex B-2 attached to this report.

e. Number of the Board resolutions

passed by circulation during the 2021 fiscal year, along with convening dates:

The Board of Directors issued five (5) resolutions by circulation during the Fiscal Year 2021, on the following dates regarding matters that do not require disclosure as per the relevant disclosure and transparency regulation issued by the Securities and Commodities Authority:

• 7 January 2021

• 9 February 2021

• 4 March 2021

• 24 May 2021

• 17 October 2021

f. Delegation of Authority:

The Board of Directors delegated to the executive management powers relating to various matters such as the powers to approve construction contracts, consultancy services, operating expenses and banking transactions within certain financial limits. This delegation of powers is reviewed each year.

• g. Related Party Transactions:

Please refer to Annex L attached to this report which provides the key related party transactions which are equal to 5% or more of the Group’s capital, in accordance with the definitions provided for these terms in both IFRS and Governance Guide during 2021.

• h. Organizational structure of the Group:

Please refer to Annex C attached to this report which includes the Group's organizational structure as of 31 December 2021.

i. Senior Executive Employees:

Please refer to Annex D attached to this report which includes a list of the Group's senior executive employees, date of appointment, total salaries and allowances paid in 2021.

4 External Auditor:

a) Brief Background on the External

Auditor:

KPMG is a global network of independent member firms offering audit, tax and advisory services. KPMG member firms operate in over 145 countries, collectively employing more than 236,000 people.

KPMG Lower Gulf Limited is a provider of audit, tax and advisory services to a broad range of domestic and international clients across all sectors of business and the economy. KPMG Lower Gulf Limited has been operating in the UAE for more than 40 years through its offices in Abu Dhabi, Dubai and Sharjah, which together comprise more than 190 partners and directors and over 1,700 employees.

In addition to its presence in the UAE and Oman, KPMG is widely represented in the Middle East for more than 50 years and has offices in the UAE, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, and Saudi Arabia, with more than 5,000 employees in the Middle East.

KPMG was the first major firm of its kind to organize itself along industry lines – a structure which enabled them to develop in-depth knowledge of their clients’ businesses and to provide them with an informed perspective. Over the years, KPMG has developed specialist industry and discipline groups to meet client requirements for professional advisors who understand and are experienced in a wide variety of business fields. KPMG have significant experience across key geographic areas and are engaged with leading industry players on a range of issues critical to the future of their industries. In addition to having many of the Middle East’s leading organizations and governmentrelated entities as its clients, KPMG in the Lower Gulf has been party to numerous milestone engagements in the region.

b) Audit Fees:

A table is attached to this report (Annex A) showing the total fees and costs related to the audit and other services provided by external auditors, including the details and nature of the services provided, and a statement of the other services provided by external auditors other than the Group’s auditor in 2021, in addition to the number of years served as an external auditor of the Group.

c) A clarification of any qualified opinion provided by the Group’s external auditor:

The auditor's report did not provide any qualified opinion regarding the interim or annual financial statements for the year 2021.

5 Audit Committee:

• a) Mr. Abdulla Al Awar, as the Chairman of the Audit Committee, acknowledges his responsibility for the committee’s system in the Group, for reviewing its working mechanism and for ensuring its effectiveness.

• 8 December 2021

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b) Composition and Functions:

• The composition of the Group’s Audit Committee during the year 2021 was as follows:

• 1- Mr. Abdulla Al Awar (chairman).

• 2- Dr. Aisha Bint Butti (member)

• 3- Mr. Khalid Al Halyan (member)

The committee has many functions, including developing and implementing the policy for appointment of external auditor and following up and monitoring its independence, as well as discussing the nature and scope of the audit process and its effectiveness in accordance with the applicable auditing standards. It also monitors the integrity of the Group's financial statements and reports, considers any significant and/or unusual items that are or must be included in these reports, and reviews the financial controls, internal controls and risk management systems, as well as the Group's financial and accounting policies and procedures.

The Audit Committee oversees the Group's compliance with the code of professional conduct, ensures the proper discharge of its duties as set out in its terms of reference in accordance with the powers entrusted to it by the Board. The Audit Committee established practical tools to enable the employees to report any potential violations related to financial reports, internal controls or other violations and takes the necessary actions in this regard; it also reviews and approves related party transactions in accordance with the policies adopted by the Board in this regard.

c) Meetings and Attendance:

The committee held its meetings during 2021 to discuss matters relating to financial statements and other matters as follows:

• 2 February 2021

• 2 March 2021

• 4 May 2021

• 3 August 2021

• 2 November 2021

• The personal attendance of the members of the committee is shown in Annex B-1 attached to this report.

6 Nomination and Remuneration

Committee:

a) Dr. Aisha Bint Butti, as the Chairman of the Nomination and Remuneration Committee, acknowledges her responsibility for the committee’s

system in the Group, for reviewing its working mechanism and for ensuring its effectiveness.

b) Composition and Functions:

The composition of the Group’s Nomination and Remuneration Committee during the year 2021 was as follows:

• 1 Dr. Aisha Bint Butti (chairman)

• 2 Mr. Ahmed Jawa (member)

• 3 Mr. Abdulla Al Awar (member)

The committee’s principal role consists of reviewing several issues, including, but not limited to, monitoring the independent status of independent board members on a continuing basis, setting out the policy for granting bonuses, benefits, incentives and salaries to Board members and employees, determining the Group's requirements for various skills and competencies, preparing the Group's policies on human resources and regulating and organizing and monitoring the procedures for nomination of Board members.

c) Meetings and Attendance:

The committee held its meeting during 2021 as follows:

• 28 February 2021

• 13 July 2021

• 14 October 2021

The personal attendance of the members of the committee is shown in Annex B-1 attached to this report.

7 Investment Committee:

• a) Mr. Mohamed Ali Alabbar, as the Chairman of the Investment Committee, acknowledges his responsibility for the committee’s system in the Group, for reviewing its working mechanism and for ensuring its effectiveness.

b) Composition and Functions:

• The composition of the Group’s Investment Committee during the year 2021 was as follows:

• 1- Mr. Mohamed Ali Alabbar (chairman)

• 2- Mr. Jamal Bin Theniyah (member)

• 3- Mr. Ahmed Jawa (member)

• 4- Mr. Adnan Kazim (member)

• 5- Mr. Khalid Al Halyan (member)

The committee’s principal role consists of reviewing several issues, including, but not limited to, the

Group's new investments, feasibility studies and related financing transactions.

c) Meetings and Attendance:

• The committee held its meetings during 2021 as follows:

• 28 February 2021

• 8 June 2021

• 17 October 2021

The personal attendance of the members of the committee is shown in Annex B-1 attached to this report.

8 Committee for Monitoring Insiders Trading:

• a) Dr. Aisha Bint Butti, as the Chairman of the Committee for Monitoring Insiders Trading, acknowledges her responsibility for the committee’s system in the Group, for reviewing its working mechanism and for ensuring its effectiveness.

b) Names of members of the Committee for Monitoring Insiders Trading, its scope of work and responsibilities

The members of the committee during the year 2021 are Dr. Aisha Bint Butti Bin Bishr and Mr. Bader Hareb (Chief Executive Officer).

The committee is responsible for managing, monitoring and supervising trading and ownership of securities of the Group by insiders, maintaining a register of their names and submitting periodic statements and reports to the stock market.

• c) Summary of the Committee's activities

report for 2021

The committee prepared and updated the register of insiders and informed the individuals named in the register about the requirements to comply with the insiders trading policy and requested them to ensure compliance with these requirements and to notify the committee when they trade in the Group's shares.

9 Internal Control System:

The Board of Directors has established an internal control system in the form of an internal control policy. This system aims to assess the methods and procedures of risk management, ensure proper application of the Governance Guide, comply with applicable laws and regulations and internal policies, and review the financial information used in the preparation of the Group’s financial statements. The Audit Committee assists the Board in overseeing the

application of the internal control system, and the Internal Audit Department coordinates the day-to-day operations related to this system.

The Internal Audit Department performs the internal control function under the supervision of the Audit Committee and the direction of the Board of Directors. The Department follows the rules governing the Group’s internal control activities. The Board of Directors acknowledges its responsibility for the Group’s internal control systems, for reviewing its methods of operation and confirms the effectiveness of internal control systems.

Mr. Irfan Sadiq serves as the Head of Audit since his appointment on 14 May 2014, and he is also the compliance officer of the Group and holds the following qualifications:

Chartered Certified Accountant (FCCA), United Kingdom. Certified Public Accountant (CPA), United States of America.

Chartered Professional Accountant (CPA), Canada.

Certified Internal Auditor (CIA), United States of America. Certified Fraud Examiner (CFE), United States of America.

The Internal Audit Department assists the Group in achieving its objectives by following a systematic and disciplined approach to assess and improve the efficiency of risk management, control systems and governance processes. In the event of material violations falling within the scope of the Internal Audit Department or identification of issues that must be disclosed in the annual report, a report is prepared regarding the matter and submitted to the Audit Committee which then take the necessary measures to deal with each of these cases, including requesting the management to provide essential clarifications or to take the needful actions to ensure effective resolution.

During 2021, the Audit Committee received reports and memorandums from Internal Audit Department on operational effectiveness, financial reporting and compliance with the Group policies including applicable laws and regulations. The Audit Committee is assisting the Board of Directors in overseeing the application of internal control systems and presented to the Board of Directors the details of the Internal Audit Department’s reports and memorandums together with the minutes of the Audit Committee meetings for their records. The number of audit reports and memorandums issued to the Audit Committee are 17 reports.

10 Violations:

The Group did not commit significant violations of the Governance Guide during 2021.

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11 Local community development and environmental conservation:

The Group contributed to number of initiatives related to the development of the local community, such as:

• The Emirates Red Crescent education initiative aims to support the children of low-income families in the UAE. The donation will be used to provide laptops and tablets to support those children.

• In line with the UAE government’s call to all residents to get vaccinated against Covid-19, Emaar successfully vaccinated over 5,000 of its employees, their family members and those employed by Emaar’s entities over five days.

• Emaar Community Management hosted in its masterplanned lifestyle communities the annual Iftar events for the service providers and workers in the communities.

• In 2021, Emaar’s partnership with the Community Development Authority translated into many initiatives and donations totaling AED 3,587,416.05

• Emaar International has dedicated over $10m for the Economically Weaker Section (EWS) housing projects in India since 2017.

• In 2021, Emaar Misr delivered the second phase of Beyout Al Kheir and delivered housing units in Luxor, Assiut, Beni Suef, and Sharqiya for underprivileged families.

12 General Information:

• a. Please refer to Annex E of this report for information on the Group’s share price in the financial market at the end of each month during year 2021.

• b. Please refer to Annex F regarding the comparative performance of the Group’s shares as opposed to the market index and the sector index to which the group belongs, during year 2021.

• c. Please refer to Annex G for categories of shareholders as of 31 December 2021.

• d. There are no shareholders holding 5% or more of the group's capital, except for Emaar Properties PJSC, which owns 79% of the share capital of the Group as of 31 December 2021 by way of owning 3,160,000,000 shares.

• e. Please refer to Annex H for categories of shareholders by reference to the size of their percentage shareholding as of 31 December 2021.

• f. Please refer to Annex I for the significant events that took place in the Group in 2021.

• g. Please refer to Annex L for Related Party transactions carried out in 2021 and which value is 5% or more of the Group’s capital.

• h. Emiratization percentage in the Group at the end of 2019, 2020, 2021 is as follows:

• 2019: 7.52%

• 2020: 11%

• 2021: 7.1%

• i. Please refer to Appendix J for the list of innovative projects and initiatives implemented by the Group or which were under development during 2021.

j. Investor Relations Guidelines: The name and contact information of the Investors’ Relations Manager:

• Mr. Abhay Singhvi

• Contact Information:

• Tel No.: 04 362 7466

• Email: investor-relations@emaar.ae

• The Investor Relations webpage link on the Group’s website:

Link: https://www.emaar.com/en/investor-relations

The appointment of Mr. Abhay Singhvi as Investor Relations Manager is a temporary appointment due to the resignation of the former Investor Relations Manager. The Group is still in the process of appointing an Investor Relations Manager who meets the requirements of Article 51 of the Governance Guide.

• k. Special Resolutions presented to the Annual General Meeting held in 2021 and the procedures taken in relation to the same:

• There were no special resolutions presented to the Annual General Meeting held on 8 April 2021.

• The name of the Board Secretary and the date of his appointment:

• Mrs. Rana Mattar was appointed as Board Secretary on 13 December 2020.

Rana joined the corporate legal department of Emaar in March 2008. She has been appointed as Group Secretary of Emaar. Rana started her career in 2000 with Abousleiman & Partners one of the leading law firms in Lebanon. She joined the inhouse legal department of BankMed in Lebanon in 2005 before relocating to Dubai. Rana studied law in Lebanon,

France and the United States. She holds an LL.M. in Business Law from USJ – Panthéon-Assas Paris II and an LL.M. in US Law from Washington University in St. Louis, USA. Rana is a member of the Lebanese Bar Association and a certified company secretary from Hawkamah.

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Adnan Kazim Chairman

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Aisha Bint Butti Bin Bishr

Chairman of the Nomination and Remuneration Committee

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Abdulla Al Awar Chairman of the Audit Committee

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Irfan Sadiq Director of the Internal Control Department

Date: 17 March 2022

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Annex A

Audit fees Table Report

Audit fees Table Report
Name of the audit frm andpartner auditor	Emilio Pera - KPMG
Number ofyears served as external auditor of the Group	3years
Total audit fees for 2021 (in AED)	250,000
Fees and costs of other special services other than auditing the	253,500
fnancial statements for 2021 (in AED)

Details and nature of other services provided Professional fees incurred in relation to review of financial statements for the period ended 31 March 2021, 30 June 2021 and 30 September 2021

Statement of other services that an external auditor other than the group accounts auditor provided during 2021

Auditor name: PWC

2021 audit fees of Dubai Hills Estate LLC: AED 145,000

Annex B-1

Board members’ attendance to the committee meetings and the allowances1 paid to the Board members for the year 2021

Name	Nomination & Remuneration Committee Audit Committee Investment Committee
	Attendance Allowance Attendance Allowance Attendance Allowance
1 Mr. Adnan Kazim	- - - - 3 30,000
2 Dr. Aisha Bint Butti Bin Bishr	3 36,000 5 50,000 - -
3 Mr. Mohamed Ali Alabbar	- - - - 1 -
4 Mr. Jamal Bin Teniyah	- - - - 3 34,000
5 Mr. Ahmed Jawa	3 30,000 - - 3 30,000
6 Mr. Abdulla Al Awar	3 30,000 5 60,000 - -
8 Mr. Khalid Al Halyan	- - 5 50,000 3 30,000

• All meetings were attended in person and there was no attendance by proxy.

• 1 Allowances amount in AED

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Annex B-2

Attendance of Board Meetings

Attendance of Board Meetings
Name	Attendance
Mr. Adnan Kazim	4
Dr. Aisha Bint Butti Bin Bishr	4
Mr. Mohamed Ali Alabbar	3
Mr.Jamal Bin Teniyah	4
Mr. AhmedJawa	4
Mr. Abdulla Al Awar	4
Mr. Khalid Al Halyan	4

• All meetings were attended in person and there was no attendance by proxy.

Annex C

Organizational Structure of the Group as of 31 December 2021

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Senior Director, Legal
Walid Karam
Emaar Development
Executive Board Member
H. E. Mohamed Ali Alabbar
Head of Sales Strategy
Omar Gull Badoo
Group CEO
Amit Jain
Chief Financial Officer
Sunil Grover
Chief Executive Officer
Bader Hareb
General Manager Joint Ventures
Fady Alborno
Legal
Sales
Finance
Development & Projects
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Annex D

Senior Executive Employees

SN	Position	Date of Appointment	Total Salaries and	Total Bonuses paid	Any other Cash/
			Allowances paid in	in 2021 (AED)	in-kind benefts for
			2021 (AED)		2021 or payable in
					the future
1	Chief Executive Ofcer	20 August 2017	2,306,046	-	769,681
2	Chief Financial Ofcer	26 March 2000	1,346,428	459,957	-
3	Executive Director,	23 July 2017	319,925	-	453,893
	Development
4	General Manager Joint	5 September 2004	1,408,713	352,987	-
	Ventures
5	Senior Director, Legal	8 April 2007	1,015,933	208,483	-
6	Head of Sales Strategy	18 March 2018	4,168,733	-	-
7	Ex Head of Sales	24June 2018	1,272,392	-	335,603

Annex E

Group Share Price in the Market (Closing Price, Highest Price, Lowest Price) at the end of each month during the year 2021.

2021	Highest price	Lowest price	Closing price
January	3.20	2.73	2.89
February	3.04	2.56	2.75
March	2.93	2.52	2.52
April	2.78	2.45	2.75
May	3.59	2.70	3.52
June	3.94	3.48	3.70
July	3.79	3.55	3.75
August	3.99	3.69	3.96
September	4.08	3.79	3.87
October	3.96	3.75	3.90
November	4.75	3.90	4.59
December	4.70	4.30	4.37

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Annex F

Comparative performance of the Group’s shares with the market index and the sector index to which the Group belongs during 2021

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Annex G

Categories of Shareholders as of 31 December 2021 (Individuals, Companies and Governments) classified as follows: UAE, GCC, Arab, foreign

Governments) classifed as follows:	UAE, GCC, Arab, foreign
Shareholder Category	Percentage of Shares Owned Total Individual Companies Government
UAE	3.7425% 87.6079% - 91.3504%
GCC	0.1001% 2.1184% - 2.2185%
Arab	0.2675% 0.0113% - 0.2788%
Foreign	0.2518% 5.9004% - 6.1522%
Total	4.3619% 95.6380% - 100%

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Annex H

Categories of Shareholders According to the Size of their Percentage Shareholding as of 31 December 2021

as of 31 December 2021
Share(s) Owned	Number of Shareholders	Number of Share Held	% of Shares Held of the
			Capital
Less than 50,000	1,890	17,744,809	0.444%
From 50,000 to less than 500,000	426	68,090,309	1.702%
From 500,000 to less than 5,000,000	139	208,852,997	5.221%
More than 5,000,000	31	3,705,311,885	92.633
Total	2,486	4,000,000,000	100%

Annex I

Significant Events of the Group during 2021

1st Quarter – 2021

Emaar Development records property sales of AED 5.904 billion (US$ 1.607 billion) and a net profit of AED 781 million (US$ 213 million) and sees the launch of Golf Place Terraces at Dubai Hils Estate in February 2021.

2nd Quarter - 2021

Emaar Development records property sales of AED 7.942 billion (US$ 2.162 billion) and a net profit of AED 1.512 billion (US$ 412 million), and sees the launch of the following projects:

• Palace Beach Residence at Emaar Beachfront in April 2021.

• Caya, Caya 2 and Bliss at Arabian Ranches III in May 2021.

3rd Quarter – 2021

Emaar Development records property sales of AED 7.118 billion (US$ 1.938 billion) and a net profit of AED 872 million (US$ 237 million) and sees the launch of the following projects:

• Palm Hills at Dubai Hills Estate in collaboration with international fashion icon Elie Saab in June 2021.

• Dubai Hills Vistas inspired by Lamborghini in collaboration with Automobili Lamborghini in June 2021.

• Nara at The Valley in August 2021.

• Beach Mansion at Emaar Beachfront in September 2021.

4th Quarter – 2021

Emaar Development records property sales of AED 27.440 billion (US$ 7.471 billion) and a net profit of AED 3.244 billion (US$ 883 million) and sees the launch of the following projects:

• June and June 2 at Arabian Ranches III in October 2021.

• Elie Saab at Arabian Ranches III in collaboration with international fashion icon Elie Saab in November 2021.

• Grove at Creek Beach, Dubai Creek Harbour in December 2021.

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Annex J

Innovative Projects and Initiatives implemented by the Group during 2021

1. Intrapreneur Program

• Revamped Employee suggestion scheme and launched 2 Phases of Intrapreneur Program in 2021.

• Implemented Viima App as main portal to submit new ideas and record comments, likes and share. The portal recorded 710 ideas, 3800+ comments, 8300+ likes and 1600+ shares related to Intrapreneur Challenges.

• Idea Challenge was launched in Phase 1 to invite ideas in three categories; to improve EBIDTA, guest satisfaction and operational efficiency. 16 ideas were shortlisted and presented to the Innovation Committee and at the end of the evaluation, 4 winners were awarded.

• Innovation Challenge was launched in Phase 2 to allow and open more innovations across the group. Phase 2 challenge does not follow any category and it is open for any innovative ideas across all grade levels. 57 ideas were submitted wherein 8 ideas are shortlisted for presentation to the Innovation Committee.

2. Emaar Talent Programs for all grade levels

• Leadership Succession & 6-month Executive Coaching (Grade 10 and above) – launched in Dubai with 8 Executive Leaders and International with 15 identified leaders from 4 countries.

• Harvard Spark Program for Grade 9 and above Leaders – launched online learning program for 100 leaders offering program topics related to leadership & management skill development.

• Harvard Manage Mentor Program for Grade 7-8 and top performing Grade 6 – launched online learning program for 400 staff offering 42 Modules focus on Leading self , leading others & leading business.

• Linkedin Learning Program for Grade 5 and above – Activated 1800 licensed users to assess wide range of modules and learning videos. 7,721 LinkedIn Courses completed till end of December 2021.

• Rapl Rapid Micro-bite sized learning for Grade 1 to 4 – Online platform where each employee will get a personalized queue of learning. 76 Quizzes Live at the portal and there are 3747 licensed users activated till end of December 2021.

3. Top Talent Programs

• 2 Talent Development programs - Top Talent and Future Shapers, were piloted in Dubai in 2021.

• Rewards are conceptualized with a clear focus on career development along with financial gain which includes Mentorship by C-level executives, 15% salary increment, Yearlong international assignment and 100% additional bonus.

• 180 nominations received from Dubai and International offices wherein 55 candidates have been shortlisted for assessment and selection in Q1 2022.

4. Emaar Playbook Project

• Developed 20+ playbooks in Dubai & 15 in Egypt wherein all playbooks were finalized with team members and approved by respective Head of Departments.

• Playbooks are live and accessible to all Emaar Employees on Emaar Portal.

5. Emaar Employee App

• Implemented HR Services and Programs in Omni App for easy access of self-service request, performance evaluation and learning & development programs.

• Employees can now update their personal information, submit ideas for Intrapreneur program portal, manage their performance, raise self service requests directly from Oracle.

6. Leadership 360-degree Feedback

• Completed 360 Feedback for 96 Leaders (Grade 7+) across 312 evaluators through Qualtrics portal.

• The project is to recognize and leverage on a leader’s key strength and identify Top 3 competencies (their leadership DNA) and Bottom 3 competencies of each leaders - Total 1170 surveys sent with 81% response rate.

7. Emiratization Drive

• Launched Emiratization Drive to focus on hiring young UAE nationals across the group. 24 Young Emiratis were onboarded from November to December 2021 upon launching of this program.

• Carried out open interview events and developed new salary structure for UAE nationals to attract more new Emirati talents .

Annex K

Statement of the Related Parties Transactions in accordance with the International Financial Reporting Standards (IFRS) as listed in the Consolidated Financial Statements of the Group for the year 2021

For the purpose of these consolidated financial statements, parties are related to the Group, if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control (Affiliated entities). Related parties may be individuals or other entities.

The Group in the normal course of business enters into transactions with individuals and other entities that falls within the definition of related party. The Group’s related parties include key management personnel, entities held under common control, associates, joint ventures and others.

The Group’s parent group is partly owned by Investment Corporate of Dubai (“ICD”), an entity owned by the Government of Dubai (“Government”). The Group enters into transactions, in the normal course of business, with Governmentowned entities and entities wherein ICD has control, joint control or significant influence. In accordance with the exemption available in IAS 24, management has elected not to disclose such transactions, which are primarily in nature of financing and operational related activities and entered in the normal course of business at commercial terms.

Related party transactions

During the year, the following were the significant related party transactions, which were carried out in the normal course of business on terms agreed between the parties:

	2021	2020
	AED’000	AED’000
Parent:
Revenue (refer (ii) below)	497,317	207,257
Selling, general and administrative	489,943	293,041
expenses (refer (i) below)
Finance cost (refer (iii) below)	40,355	59,856
Fundingreceived (refer (iii) below)	-	655,000
Fundingrepaid (refer (iii) below)	-	(825,000)
Transfer of development properties	-	184,777
fromparent

	2021	2020
	AED’000	AED’000
Afliated entities:
Selling, general and administrative	64,607	14,160
expenses
Propertydevelopment expenses	52,618	92,480
Directors, Key management
personnel and their relatedparties:
Selling, general and administrative	1,046	413
expenses

Related party balances

Significant related party balances (and the consolidated statement of financial position captions within which these are included) are as follows:

	2021	2020
	AED’000	AED’000
Parent:
Other assets, receivables,	1,631,162	3,207,391
deposits and prepayments (refer
(ii) below)
Trade and other payables (refer	2,598,805	4,475,696
(i) and (iii) below)
Afliated entities:
Other assets, receivables,	24,334	27,782
deposits andprepayments
Trade and otherpayables	37,923	33,072

(i) Allocation of corporate expenses:

The Parent Group has provided certain corporate functions to the Group and costs associated with these functions were allocated to the Group. These functions included human resources, treasury, investor relations, finance and accounting, compliance, information technology, corporate and legal compliance, business development and marketing. As per Relationship Agreement, corporate expenses are allocated by the Parent on the basis of 3% of revenue of the Group. During the current year, the Group and the Parent agreed to settle AED 2,520,438 thousands payable by the Group to the Parent by offsetting against receivable of AED 4,151,600 thousands from the Parent as at 31 December 2021.

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(ii) Recoverable from the Parent:

This mainly represents balances recoverable from the Parent with respect to the development costs incurred for the Build-to-sell (BTS) developments in Dubai Creek Harbour project. As agreed in the Master Transfer Agreement (MTA), the Parent has transferred the development services relating to the BTS development in Dubai Creek Harbour project to the Group, for which the development costs including infrastructure costs are incurred by the Group. These balances will be recovered as per the agreed terms in the MTA.

(iii) Payable to the Parent Group:

Amount due to the Parent Group is unsecured. This includes AED 2,584,750 thousands (2020: AED 2,584,750 thousands) which carries interest rate at 3 months LIBOR plus 1.4% per annum. Also refer note 15. The Group has total credit facility of USD 1,350,000 thousands (AED 4,958,550 thousands).

Compensation of key management personnel

The remuneration of key management personnel during the year was as follows:

year was as follows:
	2021 2020 AED’000 AED’000
Short-term benefts	42,142 54,564
Employees’ end-of-service	1,888 1,630
benefts
	44,030 56,194

During the year, the number of key management personnel is 34 (2020: 39).

During the year, the Group has paid a bonus of AED 3,900 thousands to the non-executive members of the Board of Directors for the year 2020 as approved by the shareholders at the Annual General Meeting of the Group held on 8 April 2021 (2020: AED 4,900 thousands).

Annex L

Related Party Transactions in 2021 Equal to 5% or More of the Capital of the Group

Group
			AED'000
Related Party Name	Nature of Relationship	Nature of Transaction	Value of transaction
Emaar Properties PJSC	Ultimate Parent	Revenue (Management fees)	497,317
		Selling, general and administrative expenses	489,943
		Finance Cost on Borrowing/ Loan	40,355

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Section 66 Financial Statements 115 - 150 Directors' Report 115 Independant Auditors' Report 116 Consolidated Financial Statements 120

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DIRECTORS’ REPORT

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Directors’ Report

The Board of Directors of Emaar Development PJSC (the “Group”) has pleasure in submitting the consolidated statement of financial position of the Group and its subsidiaries (the “Group”) as at 31 December 2021 and the related consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended 31 December 2021.

Principal activities

The principal activities of the Group are property development and to provide development management services in the UAE.

Financial results

The Group has recorded a net profit attributable to the owners of the Group of AED 3,244 million for the year ended 31 December 2021.

In accordance with the Articles of Association of the Group and UAE Federal Law No. (2) of 2015, an appropriation of AED 324 million is made to a legal reserve from the distributable profit of AED 3,244 million. The transfer of profit to legal reserve will be allocated until it reaches 50% of the paid-up share capital.

In order to reduce its debt obligations for better capital structure and cater to its land acquisition payments and to create long term value for its shareholders, the Board of Directors of the Group has not recommended any dividend to the shareholders for 2021, which is subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Group.

The balance of the distributable profit after considering appropriation to legal reserve will be transferred to retained earnings. Total equity attributable to the owners of the Group as at 31 December 2021 amount to AED 14,493 million.

Outlook for 2022

The Group has recorded highest ever property sales of AED 27,440 million (including joint ventures and development agreements) in 2021 and will continue to focus launching new projects in 2022 to create future backlog.

The Group’s significant sales backlog of AED 28,616 million (including joint ventures and development agreements) and robust development pipeline are the backbone for delivering sustainable future growth. We shall continue to focus on setting benchmarks in design, build quality, choice of amenities and

further strengthen our customer centric approach. Our successful strategy to unlock the true potential of property development business has been aimed at delivering long-term value for our shareholders, and we will continue to focus on our core competencies. We shall remain focused on future growth through focused new project launches, digital innovation, and consistently adding value to Dubai’s property sector in 2022.

The Group is expected to deliver over 8,000 residential units in 2022 across various masterplans like Downtown, Dubai Creek Harbour, Dubai Hills Estate, Emaar Beachfront, Arabian Ranches III and Emaar South.

Transactions with related parties

The consolidated financial statements disclose related party transactions and balances in note 24. All transactions are carried out as part of our normal course of business and in compliance with applicable laws and regulations.

Directors

Directors
Mr. Adnan Kazim	(Chairman)
Dr. Aisha Bint Butti Bin Bishr	(Vice Chairman)
Mr. Mohamed Ali Alabbar	(Executive Director)
Mr.Jamal Bin Teniyah	(Director)
Mr. AhmedJawa	(Director)
Mr. Abdulla Al Awar	(Director)
Mr. Khalid Al Halyan	(Director)

Auditors

KPMG were appointed as external auditors of the company for the year ended 31 December 2021. The Board of Directors has recommended KPMG as the auditors for 2022 for approval by the shareholders at the forthcoming Annual General Meeting.

On behalf of the Board of Directors

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Adnan Kazim

Chairman

Dubai, United Arab Emirates 17 March 2022

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EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021

INDEPENDENT AUDITORS’ REPORT

Independent Auditors’ Report

To the Shareholders of Emaar Development PJSC

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with International Ethics Standards Board for Accountants International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated financial statements in the United Arab Emirates, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Emaar Development PJSC (“the Group”) and its subsidiaries (“the Group”), which comprise the consolidated statement of financial position as at 31 December 2021, the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information.

In our opinion, the acgrouping consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2021, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS).

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue recognition on sale of development properties (“properties”)

See Note 2.2, 2.4 and 4 to the consolidated financial statements. The key audit matter How the matter was addressed in our audit

The Group recognizes revenue on sale of properties in accordance • We assessed the appropriateness of the revenue recognition with IFRS 15 “Revenue from Contracts with Customers”. The accounting policies adopted by the Group and its compliance Group recognises revenue on sale of properties either at point in with International Financial Reporting Standards (“IFRS”); time or over time depending on the terms of contracts with its • Obtained understanding of the revenue process implemented customer and the relevant laws and regulations of the jurisdiction by the Group; in which it has entered into the contract with its customers. Revenue recognition on sale of properties was considered a key • We have performed test of design and implementation of audit matter due to following key elements of judgement and relevant controls; estimation involved that warrant additional audit focus:

• Obtained understanding of the revenue process implemented by the Group;

• • We have performed test of design and implementation of relevant controls;

• • On a sample basis, we assessed the contracts for sale of properties to identify the performance obligations of the Group under these contracts and assessed whether these performance obligations are satisfied over time or at a point in time based on the criteria specified under IFRS 15;

• the analysis of whether the contracts comprise one or more performance obligations;

• • determining whether the performance obligations are satisfied over time or at a point in time;

• • estimation of total costs required to meet performance obligations under the contracts with customers and for performance obligations satisfied over time, recognize proportionate revenue to the extent of satisfaction of performance obligations; and

• On a sample basis, we assessed the appropriateness of percentage of completion of the construction of properties by reference to costs incurred to date compared to the estimated total costs where the performance obligation is satisfied over time;

• On a sample basis, we assessed the adequacy of the total estimated cost to complete through the management appointed external cost consultant’s report, supporting agreements and other relevant information. For costs incurred to date, we have tested, on a sample basis, significant items of cost components by comparing these to the relevant supporting documents including payment certificates to ascertain the existence and accuracy of the costs of work done; and

• evaluating the probability that the Group will collect the entitled consideration under the contracts with customers.

• We assessed the adequacy of the disclosure in the consolidated financial statements.

Independent Auditors’ Report

Assessment of net realisable value of development properties (“the properties”)

See Note 2.2, 2.4 and 11 to the consolidated financial statements. The key audit matter The Group holds properties which includes completed projects, projects under construction and plots of land. The properties are stated at the lower of cost and estimated net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

How the matter was addressed in our audit

• We evaluated the qualifications and competence of the external valuer and read the terms of engagement of the valuers with the Group to determine whether there were any matters that might have affected their objectivity or limited the scope of their work;

• We involved our real estate valuation specialist, who on a sample basis, reviewed valuation methodologies used in the valuation process and challenged assumptions such as estimates of selling price, cost to complete, discount rates and capitalisation rate is appropriate for determining the net realisable value for the properties by comparing them against historical rates and available industry data, taking into consideration comparability and market factors;

The Group engages professionally qualified external valuer to assess the net realisable value of substantial portion of its properties. The assessment of net realisable value process involves significant judgement in estimating the underlying assumptions to be applied. The external valuer report contains material uncertainty clauses due to the market disruption caused by the COVID-19 pandemic, which is consistent with the guidance issued by RICS Valuation Global Standards. These clauses do not invalidate net realisable value nor does it indicate that the valuation cannot be relied upon, but implies that there is substantially more uncertainty in relation to assessing the net realisable value of the Group’s properties than under normal market conditions.

• On a sample basis, performed audit procedures to assess whether the source data used for determining the net realisable value are reasonable by comparing it to the underlying supporting information;

• Performed sensitivity analysis on the significant assumptions to evaluate the extent of the impact of changes in the key assumptions to the conclusions reached by management; and

Assessment of net realizable value requires management to make significant estimates and judgements. This coupled with existence of material estimation uncertainty, warrants specific audit focus in this area as any error in determining the net realisable value could have a material impact on the carrying value of the Group's properties in the consolidated financial statements.

• We assessed the adequacy of the disclosure in the consolidated financial statements.

report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Other Information

Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the consolidated financial statements and our auditors’ report thereon. We obtained Directors’ Report prior to the date of our auditors’ report, and we expect to obtain the remaining sections of the Annual Report after the date of the auditors’ report.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and their preparation in compliance with the applicable provisions of the UAE Federal Law No. (2) of 2015 (as amended) and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’

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INDEPENDENT AUDITORS’ REPORT

Independent Auditors’ Report

Those Charged with Governance are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may

cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Further, as required by the UAE Federal Law No. (2) of 2015 (as amended) we report that for the year ended 31 December 2021:

• i) we have obtained all the information and explanations we considered necessary for the purposes of our audit;

• ii) the consolidated financial statements have been prepared and comply, in all material respects, with the applicable provisions of the UAE Federal Law No. (2) of 2015 (as amended);

• iii) the Group has maintained proper books of account;

• iv) the financial information included in the Directors’ Report is consistent with the books of account of the Group;

Independent Auditors’ Report

• v) as disclosed in note 1 to the consolidated financial viii) note 5 to the consolidated financial statements discloses statements, the Group has not purchased any shares during the social contributions made during the year ended 31 the year ended 31 December 2021; December 2021.

• vi) note 24 to the consolidated financial statements discloses material related party transactions and the terms under which they were conducted;

KPMG Lower Gulf Limited

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• vii) based on the information that has been made available to us, nothing has come to our attention which causes us to believe that the Group has contravened during the financial year ended 31 December 2021 any of the applicable provisions of the UAE Federal Law No. (2) of 2015 (as amended) or in respect of the Group, its Articles of Association, which would materially affect its activities or its consolidated financial position as at 31 December 2021; and

Emilio Pera

Registration No.: 1146

Dubai, United Arab Emirates Date: 17 March 2022

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EMAAR DEVELOPMENT PJSC – INTEGRATED ANNUAL REPORT 2021 119

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Comprehensive Income For the year ended 31 December 2021

Notes	(US$ 1.00 = AED 3.673) 2021 2020 AED’000 AED’000
Revenue 4	15,601,892 9,758,283
Cost of revenue 4	(9,867,194) (6,279,869)
GROSS PROFIT	5,734,698 3,478,414
Selling,general and administrative expenses 5	(1,653,508) (1,304,848)
Finance income 6	124,098 56,725
Finance costs 7	(268,321) (300,312)
Other income	60,659 27,682
Share of results ofjoint ventures 13	234,884 97,869
PROFIT FOR THE YEAR	4,232,510 2,055,530
Other comprehensive income	- -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	4,232,510 2,055,530
ATTRIBUTABLE TO:
Owners of the Group	3,244,339 1,657,310
Non-controllinginterest 28	988,171 398,220
	4,232,510 2,055,530
Earningsper share attributable to
the owners of the Group:
- basic and diluted earningsper share (AED) 21	0.81 0.41

Consolidated Statement of Financial Position

As at 31 December 2021

Notes	(US$ 1.00 = AED 3.673) 2021 2020 AED’000 AED’000
ASSETS
Bank balances and cash 8	5,688,655 3,349,997
Trade and unbilled receivables 9	14,595,624 9,692,636
Other assets, receivables, deposits andprepayments 10	2,942,798 4,668,705
Developmentproperties 11	11,179,609 14,469,588
Loans tojoint ventures 12	979,729 975,248
Investments injoint ventures 13	751,246 516,362
Property,plant and equipment 14	26,931 36,402
TOTAL ASSETS	36,164,592 33,708,938
LIABILITIES AND EQUITY
Liabilities
Trade and otherpayables 15	11,201,089 12,887,764
Advances from customers 16	4,464,589 2,733,041
Retentionspayable 17	803,836 854,624
Interest-bearingloans and borrowings 18	3,258,667 3,711,446
Provision for employees’ end-of-service benefts	21,035 22,297
TOTAL LIABILITIES	19,749,216 20,209,172
EQUITY
Equity attributable to owners of the Group
Share capital 19	4,000,000 4,000,000
Legal reserve 20	1,179,790 855,356
Retained earnings	9,313,015 6,397,010
	14,492,805 11,252,366
Non-controlling interests 28	1,922,571 2,247,400
TOTAL EQUITY	16,415,376 13,499,766
TOTAL LIABILITIES AND EQUITY	36,164,592 33,708,938

To the best of our knowledge, the consolidated financial statements fairly present, in all material respects, the consolidated financial position, results of operation and consolidated cash flows of the Group as of, and for, the year ended 31 December 2021.

The consolidated financial statements were authorised for issue by Board of Directors and signed on their behalf by:

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Director Director

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CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Changes in Equity

For the year ended 31 December 2021

(US$ 1.00 = AED 3.673)

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Attributable to the owners of the Group
Share Legal Retained Non- Total
capital reserve earnings Total controlling equity
interests
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
Balance at 1 January 2021 4,000,000 855,356 6,397,010 11,252,366 2,247,400 13,499,766
Profit for the year - - 3,244,339 3,244,339 988,171 4,232,510
Other comprehensive income for the year - - - - - -
Total comprehensive income for the year - - 3,244,339 3,244,339 988,171 4,232,510
Director’s Bonus - - (3,900) (3,900) - (3,900)
Dividend paid by a subsidiary (note 26) - - - - (1,313,000) (1,313,000)
Transfer to legal reserve (note 20) - 324,434 (324,434) - - -
Balance at 31 December 2021 4,000,000 1,179,790 9,313,015 14,492,805 1,922,571 16,415,376
Balance at 1 January 2020 4,000,000 689,625 4,910,331 9,599,956 2,754,180 12,354,136
Profit for the year - - 1,657,310 1,657,310 398,220 2,055,530
Other comprehensive income for the year - - - - - -
Total comprehensive income for the year - - 1,657,310 1,657,310 398,220 2,055,530
Director’s Bonus - - (4,900) (4,900) - (4,900)
Dividend paid by a subsidiary (note 26) - - - - (905,000) (905,000)
Transfer to legal reserve (note 20) - 165,731 (165,731) - - -
Balance at 31 December 2020 4,000,000 855,356 6,397,010 11,252,366 2,247,400 13,499,766
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Consolidated Statement of Cash Flows

For the year ended 31 December 2021

Notes	(US$ 1.00 = AED 3.673) 2021 2020 AED’000 AED’000
CASH FLOWS FROM OPERATING ACTIVITIES
Proft for theyear	4,232,510 2,055,530
Adjustments for:
Share of results ofjoint ventures 13	(234,884) (97,869)
Depreciation (includingright-of use assets) 5	12,401 18,883
Provision for employees’ end-of-service benefts, net	(1,262) (1,729)
Finance costs 7	268,321 300,312
Finance income 6	(124,098) (56,725)
Cash from operations before working capital changes	4,152,988 2,218,402
Trade and unbilled receivables	(4,838,665) (1,082,966)
Other assets, receivables, deposits andprepayments	(794,531) (71,668)
Developmentproperties	3,289,979 299,568
Advances from customers	1,731,548 (693,318)
Trade and otherpayables	706,912 (271,524)
Retentionspayable	(50,788) 29,855
Net cash from operating activities	4,197,443 428,349
CASH FLOWS FROM INVESTING ACTIVITIES
Finance income received	13,802 56,725
Repayment of loan/ (loangiven) tojoint ventures	41,492 (64,552)
Amounts incurred onproperty,plant and equipment 14	(2,930) (650)
Net cash from/ (used in) investing activities	52,364 (8,477)
CASH FLOWS FROM FINANCING ACTIVITIES
Finance costspaid	(139,560) (162,879)
Repayment of fundingfrom Parent	- (170,000)
Borrowings from fnancial institutions	600,000 407,040
Repayment of loans to fnancial institutions	(1,095,862) (199,517)
Dividendspaid 26	(1,313,000) (905,000)
Director’s Bonuspaid	(3,900) (4,900)
Repayment of lease liability	- (5,525)
Net cash used in fnancing activities	(1,952,322) (1,040,781)
INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS	2,297,485 (620,909)
Cash and cash equivalents at the beginningof theyear	3,307,800 3,928,709
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 8,18	5,605,285 3,307,800

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements

As at 31 December 2021

As at 31 December 2021

1 CORPORATE INFORMATION

The incorporation of Emaar Development PJSC (the “Group”) as a Public Joint Stock Group was approved by the Securities and Commodities Authority according to Federal Law No.4 of 2000 on 20 November 2017 and the registration certificate was issued on 21 November 2017. The Group’s registered office is at P.O. Box 9440, Dubai, United Arab Emirates (“UAE”).

The Group is a subsidiary of Emaar Properties PJSC (the “Parent Group” or “Parent”), a group incorporated in the UAE and listed on the Dubai Financial Market. The Group is also listed on the Dubai Financial Market. The Group and its subsidiaries constitute the Group (the “Group”).

The principal activities of the Group are property development and development management services in the UAE.

The Group has not invested in shares or stocks during 2021 and 2020.

The consolidated financial statements were authorised for issue on 17 March 2022.

2.1 BASIS OF PREPARATION

The consolidated financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”) and applicable requirements of the UAE Federal Law No. (2) of 2015.

On 20 September 2021, the UAE Federal Decree Law No. (32) of 2021 was issued and came into effect on 2 January 2022 which repealed the UAE Federal Law No. (2) of 2015. The Group has 12 months from 2 January 2022 to comply with the provisions of the UAE Federal Decree Law No. (32) of 2021. The Group is currently assessing the impact of the new law and expects to be fully compliant on or before due date.

The consolidated financial statements have been prepared in United Arab Emirates Dirhams (AED), which is the Group’s functional and presentation currency, and all values are rounded to the nearest thousand except where otherwise indicated. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

The consolidated financial statements have been prepared on a historical cost basis. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

The preparation of consolidated financial statements on the basis described above requires management to make judgements, estimates and assumptions that affect the

application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which for the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Certain comparative amounts have been reclassified to conform to the presentation used in these consolidated financial statements.

Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group and the entities controlled by the Group as at 31 December 2021. Control is achieved where all the following criteria are met:

• (a) the Group has power over an entity (i.e., existing rights that give it the current ability to direct the relevant activities of the investee);

• (b) the Group has exposure, or rights, to variable returns from its involvement with the entity; and

• (c) the Group has the ability to use its power over the entity to affect the amount of the Group’s returns.

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

• The contractual arrangement with the other vote holders of the investee

• Rights arising from other contractual arrangements

• The Group’s voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the period are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Subsidiaries

Subsidiaries are fully consolidated from the date of acquisition or incorporation, being the date on which the Group obtains control (irrespective of percentage of shareholding), and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period

as the Group, using consistent accounting policies. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full.

the Group losses control over a subsidiary, it:

• Derecognises the assets (including goodwill) and liabilities of the subsidiary;

• Derecognises the carrying amount of any noncontrolling interest;

• Derecognises the cumulative translation differences, recorded in equity;

Non-controlling interest (NCI) are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

• Recognises the fair value of the consideration received;

• Recognises the fair value of any investment retained;

• Recognises any surplus or deficit in the consolidated statement of comprehensive income; and

Share of comprehensive income/loss within a subsidiary is attributed to the non-controlling interest even if that results in a deficit balance.

• Reclassifies the Group’s share of components previously recognised in other comprehensive income to the consolidated statement of comprehensive income or retained earnings, as appropriate.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If

Details of the Group’s subsidiaries are as follows:

Subsidiaries	Place of	Principal activities	Percentage of
	incorporation		efective holding
Dubai Hills Estate LLC	UAE	Propertydevelopment	50%
Emaar Mina Rashid Development	UAE	Buying, selling and development of real estate	100%
Owned By Emaar Development L.L.C		and leasing and management of self-owned
		property
Mina Rashid Properties L.L.C	UAE	Buying, sellingand development of real estate	100%
Emaar Gardens L.L.C	UAE	Real Estate Development, Investment in	100%
		Commercial Enterprises & Management

Joint ventures

Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities even if the shareholding is is 50% or more.

2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The Group’s investment in joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, investments in joint ventures are carried in the consolidated statement of financial position at cost, plus post-acquisition changes in the Group’s share of net assets of the joint venture companies, less any impairment in value.

The preparation of these consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the acgrouping disclosures and the disclosure of contingent liabilities at the reporting date. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the assets or liabilities affected in future periods.

The consolidated statement of comprehensive income reflects the Group’s share of results of its joint ventures. Unrealised profits and losses resulting from transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures.

Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

recognised in the period in which the estimates are revised.

The key judgments and estimates and assumptions that have a significant impact on the consolidated financial statements of the Group are discussed below:

Judgments

Timing of satisfaction of performance obligations

The Group is required to assess each of its contracts with customers to determine whether performance obligations are satisfied over time or at a point in time in order to determine the appropriate method of recognising revenue. The Group has assessed that based on the sale and purchase agreements entered into with customers and the provisions of relevant laws and regulations, where contracts are entered into to provide real estate assets to customer, the Group does not create an asset with an alternative use to the Group and usually has an enforceable right to payment for performance completed to date. In these circumstances the Group recognises revenue over time. Where this is not the case revenue is recognised at a point in time.

Determination of transaction prices

The Group is required to determine the transaction price in respect of each of its contracts with customers. In making such judgment the Group assess the impact of any variable consideration in the contract, due to discounts or penalties, the existence of any significant financing component in the contract and any non-cash consideration in the contract.

In determining the impact of variable consideration, the Group uses the “most-likely amount” method in IFRS 15 Revenue from Contracts with Customers whereby the transaction price is determined by reference to the single most likely amount in a range of possible consideration amounts.

Transfer of control in contracts with customers

In cases where the Group determines that performance obligations are satisfied at a point in time, revenue is recognised when control over the asset that is the subject of the contract is transferred to the customer. In the case of contracts to sell real estate assets this is generally when the consideration for the unit has been substantially received and there are no impediments in the handing over of the unit to the customer.

Classification of investments

Management designates at the time of acquisition of securities whether these should be classified as at fair value or amortised cost. In judging whether investments in securities are classified as at fair value or amortised cost, management has considered the detailed criteria for determination of such classification as set out in IFRS 9 Financial Instruments.

Consolidation of subsidiary

The Group has evaluated all the investee entities including special purpose entities to determine whether it controls the investee as per the criteria laid out by IFRS 10: Consolidated Financial Statements. The Group has evaluated, amongst other things, its ownership interest, the contractual arrangements in place and its ability and the extent of its involvement with the relevant activities of the investee entities to determine whether it controls the investee.

Estimations and assumptions

Split of real estate components

The consolidated financial statements of the Group include certain assets, liabilities, income, expenses and cash flows which are allocated to the Group based on management assumptions and estimates. This mainly includes development properties, trade and other payables, retention payable, advance from customers and selling, general and administrative expenses. These are allocated based on evaluation by project consultant and management best estimate of use of corporate resources by the Group.

Impairment of trade, unbilled receivables and other receivables

An estimate of the collectible amount of trade, unbilled and other receivables is made when collection of the full amount is no longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are not individually significant, but which are past due, are assessed collectively and a provision applied based on expected credit losses on such receivables.

Useful lives of property, plant and equipment

The Group’s management determines the estimated useful lives of its property, plant and equipment for calculating depreciation. This estimate is determined after considering the expected usage of the asset or physical wear and tear. The management periodically reviews estimated useful lives and the depreciation method to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from these assets.

Measurement of progress when revenue is recognised over time

The Group has elected to apply the input method to measure the progress of performance obligations where revenue is recognised over time. The Group considers that the use of the input method which requires revenue recognition on the basis of the Group’s efforts to the satisfaction of the performance obligation provides the best reference of revenue actually earned. In applying the input method, the Group estimates the cost to complete the projects in order to determine the amount of revenue to be recognised.

Cost to complete the projects

Notes to the Consolidated Financial Statements As at 31 December 2021

The Group estimates the cost to complete the projects in order to determine the cost attributable to revenue being recognised. These estimates include the cost of providing infrastructure, potential claims by contractors as evaluated by the project consultant and the cost of meeting other contractual obligations to the customers.

Impairment of non-financial assets

The Group assesses whether there are any indicators of impairment for all non-financial assets at each reporting date. The non-financial assets are tested for impairment when there are indicators that the carrying amounts may not be recoverable. When value in use calculations are undertaken, management estimates the expected future cash flows from the asset or cash-generating unit and chooses a suitable discount rate in order to calculate the present value of those cash flows.

Development properties are stated at the lower of cost and estimated net realisable value. The cost of work-in-progress comprises construction costs and other related direct costs. Net realisable value is the estimated selling price in the ordinary course of business, less cost of completion and selling expenses.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Impact of Covid-19

In January 2020, the World Health Organization (“WHO”) announced a global health emergency because of coronavirus (the “COVID-19 Outbreak”). During March 2020, the WHO classified COVID-19 Outbreak as a pandemic based on the rapid increase in exposure and infections across the world. The pandemic nature of this virus necessitated global travel restrictions and total lockdown in most countries of the world, with negative implications on the global economy, social life and also impacting the Group operations.

The COVID-19 Outbreak had impacted the Group which was reflected in its financial results for the year ended 31 December 2020. As a result, the Group undertook various measures, rationalizing its operations by optimizing staff level and operating costs, working closely with its suppliers and customers to minimize impact on revenue and cost, re-evaluating projects and increased collection efforts from various customers. As the lockdown started to ease and travel recommenced in the second half of 2020, the Group

witnessed increased real estate sales compared to the initial time of pandemic in early part of 2020. During 2021, there has been a significant improvement in operating results of the Group as the impact of pandemic started to ease. The Group’s management continues to evaluate current situation including pricing strategy and cost optimization initiatives.

The management’s assessment of the impact of the COVID-19 outbreak on relevant matters is as follows:

• a) Net realisable value assessment of development properties

The Group’s real estate businesses has continued to deliver on projects. Land held for sale and properties classified under development properties are stated at the lower of cost or net realizable value ("NRV"). NRV is assessed with reference to estimated sales prices, costs of completion and advances received, development plans and market conditions existing at the end of the reporting period. The management has considered COVID-19 outbreak indicators to assess the estimated realizable value of its development properties and concluded, there is no material impact due to COVID-19 outbreak, leading to any significant write-downs, considering the head room that the Group has in respect of its development properties based on the latest external valuations performed as at 31 December 2021.

As at 31 December 2021, valuations performed by the external valuer (for the purpose of determining net realisable value of development properties) continue to state a clause over material valuation uncertainty due to the market disruption caused by the COVID-19 pandemic, which is consistent with the guidance issued by RICS Valuation Global Standards. Consequently, as a result, less certainty and a higher degree of caution should be attached to valuations performed by the external valuer. Albeit, this clause does not invalidate the valuation nor does it indicate that the valuation cannot be relied upon, but implies that there is substantially more uncertainty than under normal market conditions. The valuation of properties takes into account the level of pandemic, related economic impact, expected recovery including earning levels of properties. As a result of the continued uncertainty, these assumptions may be revised significantly in the subsequent periods. Also refer notes 11.

b) Funding and liquidity

The Group continues to monitor and respond to all liquidity and funding requirements through its plan reflecting the current economic scenarios. The Group believes that, as at 31 December 2021, liquidity position of the Group remains strong and its existing balances of cash and cash equivalents, along with undrawn revolving credit facilities will be sufficient

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

to satisfy its working capital needs, capital expenditures and other liquidity requirements as they fall due in the foreseeable future.

2.3 CHANGES IN THE ACCOUNTING POLICIES AND DISCLOSURES

• (a) New standards, interpretations and amendments in issue but not yet effective

A number of new standards are effective for annual periods beginning after 1 January 2022 and earlier application is permitted, however, the Group has not early adopted the new or amended standards in preparing these consolidated financial statements.

The following amended standards and interpretations are not expected to have a significant impact on the Group's

consolidated financial statements:

consolidated fnancial statements:
New standards or amendments	Efective date
Onerous Contracts -Cost of Fulfllinga Contract (Amendment to IAS 37)	1January2022
Annual improvements to IFRS Standards 2018-2020	1January2022
Property, Plant and Equipment: Proceeds before Intended Use	1 January 2022
(Amendments to IAS 16)
Reference to conceptual framework (Amendments to IFRS 3)	1January2022
Defnition of accountingestimates, amendments to IAS 8	1January2023
Classifcation of Liabilities as Current and Non-current (Amendments to IAS 1)	1January2023
IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts	1January2023
Sale or Contribution of Assets between and Investor its Associates or Joint Venture (Amendments to IFRS 10 and IAS 28)	Efective date deferred indefnitely
Disclosure of Accounting Policies	1 January 2023
(Amendments to IAS 1 ad IFRS Practice Statement 2)
Deferred Tax related to Assets and Liabilities arising from a Single Transaction	1 January 2023
(Amendments to IAS 12)

The Group does not expect the adoption of the above new standards, amendments and interpretations to have a material impact on the future consolidated financial statements of the Group.

The following new or amended standards that are adopted in annual periods beginning on I January 2021:

New standards or ammendments	Efective date
Interest Rate Benchmark Reform Phase 2 - Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and	1 January 2021
IFRS 16

These amendments / improvements had no impact on the consolidated financial statements of the Group.

2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue recognition

Revenue from contracts with customers

The Group recognises revenue from contracts with customers based on a five-step model as set out in IFRS 15:

• Step 1. Identify the contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be met.

• Step 2. Identify the performance obligations in the contract: A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer.

Notes to the Consolidated Financial Statements As at 31 December 2021

Step 3. Determine the transaction price: The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

• Step 4. Allocate the transaction price to the performance obligations in the contract: For a contract that has more than one performance obligation, the Group will allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the Group expects to be entitled in exchange for satisfying each performance obligation.

• Step 5. Recognise revenue when (or as) the entity satisfies a performance obligation.

The Group satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:

1. The customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; or

2. The Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

3. The Group’s performance does not create an asset with an alternative use to the Group and the entity has an enforceable right to payment for performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied.

When the Group satisfies a performance obligation by delivering the promised goods or services it creates a contract asset based on the amount of consideration earned by the performance. Where the amount of consideration received from a customer exceeds the amount of revenue recognised this gives rise to a contract liability.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes and duty. The Group assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The Group has concluded that it is acting as a principal in all of its revenue arrangements. Revenue is recognised in the consolidated statement of comprehensive income to the extent that it is probable that the economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably.

Revenue from sale of land

The performance obligation with regards to sale of land is satisfied at a point in time when customer has access to the plot. The Group has established a criteria of having a signed sales agreement and payment of 20% or more to grant access of plot to the customer.

Upon recognition of revenue against a certain plot, the infrastructure cost allocated to the plot of land is released to the statement of comprehensive income, as cost of revenue.

Development services

Revenue from rendering of development management services is recognised when the outcome of the transaction can be estimated reliably, by reference to the stage of completion of the development obligation at the reporting date. Where the outcome cannot be measured reliably, revenue is recognised only to the extent that the expenses incurred are eligible to be recovered.

Interest income

Interest income is recognised as the interest accrues using the effective interest method, under which the rate used exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Borrowing costs

Borrowing costs directly attributable to the acquisition or construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

All other borrowing costs are recognised in the consolidated income statement in the year in which they are incurred.

Property, plant and equipment

Property, plant and equipment are measured at cost (which includes capitalised borrowing costs) less accumulated depreciation and any impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows:

lives as follows:
Sales centers (included in land and	1 - 10 years
buildings)
Computers and ofce equipment	2 - 5years
Motor vehicles	3 - 5years
Furniture and fxtures	2 - 5years

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements As at 31 December 2021

No depreciation is charged on land and capital work-inprogress. The useful lives, depreciation method and residual values are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from these assets.

Expenditure incurred to replace a component of an item of property, plant and equipment that is accounted for separately is capitalised and the carrying amount of the component that is replaced is written off. Other subsequent expenditure is capitalised only when it increases future economic benefits of the related item of property, plant and equipment. All other expenditure is recognised in the consolidated statement of comprehensive income as the expense is incurred.

Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of property, plant and equipment may not be recoverable. Whenever the carrying amount of property, plant and equipment exceeds their recoverable amount, an impairment loss is recognised in the consolidated statement of comprehensive income. The recoverable amount is the higher of fair value less costs to sell of property, plant and equipment and the value in use. The fair value less costs to sell is the amount obtainable from the sale of property, plant and equipment in an arm’s length transaction while value in use is the present value of estimated future cash flows expected to arise from the continuing use of property, plant and equipment and from its disposal at the end of its useful life.

Reversal of impairment losses other than goodwill impairment recognised in the prior years are recorded when there is an indication that the impairment losses recognised for the property, plant and equipment no longer exist or have reduced.

Development properties

Properties acquired, constructed or in the course of construction for sale in the ordinary course of business are classified as development properties and are stated at the lower of cost or net realisable value. Cost includes:

• Freehold and leasehold rights for land;

• Amounts paid to contractors for construction; and

• Planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes, construction overheads and other directly attributable costs.

Net realisable value is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date and discounted for the time value of money if material, less costs to completion and the estimated costs of sale.

The cost of development properties recognised in the consolidated statement of comprehensive income on sale is determined with reference to the specific costs incurred on the property sold and an allocation of any non-specific costs based on the relative size of the property sold.

The management reviews the carrying values of the development properties on an annual basis.

Investment in joint ventures

The consolidated income statement reflects the Group’s share of the results of operations of its joint ventures. Where there has been a change recognised directly in the other comprehensive income, the Group recognises its share of any changes, when applicable, in the consolidated statement of comprehensive income or the consolidated statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and its joint ventures are eliminated to the extent of the interest in the joint venture.

The financial statement of joint ventures are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its joint ventures. At each reporting date, the Group determines whether there is any objective evidence that the investment in the joint venture is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture, and its carrying value and recognises the impairment losses in the consolidated income statement.

Upon loss of significant influence over the joint venture, the Group measures and recognises any retained investment at its fair value. Any differences between the carrying amount of the joint venture upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in the consolidated income statement. When the remaining investment in joint venture constitutes significant influence, it is accounted for as an investment in associate.

Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

Notes to the Consolidated Financial Statements As at 31 December 2021

Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straightline basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.

Financial assets

All financial assets are recognised and derecognised on trade date when the purchase or sale of a financial asset is made under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned. Financial assets are initially measured at cost, plus transaction costs, except for those financial assets classified as at fair value through other comprehensive income or profit or loss, which are initially measured at fair value. Trade receivables are initially recognised when they are originated. Trade and unbilled receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15. All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value.

The fair value of financial instruments that are actively traded in organised financial markets is determined by reference to quoted market bid prices for assets and offer prices for liabilities, at the close of business on the reporting date. If quoted market prices are not available, reference can also be made to broker or dealer price quotations.

The fair value of floating rate and overnight deposits with credit institutions is their carrying value. The carrying value is the cost of the deposit and accrued interest. The fair value of fixed interest-bearing deposits is estimated using discounted cash flow techniques. Expected cash flows are discounted at current market rates for similar instruments at the reporting date.

Classification of financial assets

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

For the purposes of classifying financial assets, an instrument is an ‘equity instrument’ if it is a non-derivative and meets the definition of ‘equity’ for the issuer (under IAS 32: Financial Instruments: Presentation) except for certain non-derivative puttable instruments presented as equity by the issuer. All other non-derivative financial assets are ‘debt instruments’.

Equity investments

All financial assets that are equity investments are measured at fair value either through other comprehensive income or through profit or loss. This is an irrevocable choice that the Group has made on adoption of IFRS 9 or will make on subsequent acquisition of equity investments unless the equity investments are held for trading, in which case, they must be measured at fair value through profit or loss. Gain or loss on disposal of equity investments is not recycled. Dividend income for all equity investments is recorded through the consolidated income statement when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through P&L and OCI are not subject to impairment assessment.

The Group elected to classify irrevocably its non-listed equity investments as financial assets measured at fair value through other comprehensive income.

Debt instruments

Debt instruments are also measured at fair value through other comprehensive income (OCI) unless they are classified at amortised cost. They are classified at amortised cost only if:

• the asset is held within a business model whose objective is to hold the asset to collect the contractual cash flows; and

• the contractual terms of the debt instrument give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal outstanding.

Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash in hand, bank balances and short-term deposits with an original maturity of three months or less, net of outstanding bank overdrafts.

Trade and unbilled receivables

Trade receivables are stated at original invoice amount (unless there is a significant financing component) less expected credit losses. When a trade receivable is uncollectible, it is written off against provision for doubtful debts. Subsequent recoveries of amounts previously written off are credited to the consolidated income statement.

Services rendered but not billed at the reporting date are accrued as per the terms of the agreements as unbilled receivables.

Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements As at 31 December 2021

translated at the spot rate at the end of the reporting period. The foreign exchange component forms part of its fair value gain or loss. For financial assets classified as at fair value through profit or loss, the foreign exchange component is recognised in the consolidated income statement. For financial assets designated at fair value through other comprehensive income any foreign exchange component is recognised in the consolidated income statement and other comprehensive income. For foreign currency denominated debt instruments classified at amortised cost, the foreign exchange gains and losses are determined based on the amortised cost of the asset and are recognised in the ‘other gains and losses’ line item in the consolidated income statement.

Derecognition of financial assets

A financial asset (or, when applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

• The rights to receive cash flows from the asset have expired; or

• The Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘passthrough’ arrangement, and

• The Group has transferred its rights to receive cash flows from the asset and either:

• » has transferred substantially all the risks and rewards of the asset, or

• » has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

When the Group has transferred its right to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

Impairment of financial assets

The Group recognises an allowance for expected credit losses ("ECL") for all debt instruments and contract assets not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the

Group expects to receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment, that includes forward-looking information.

For trade and unbilled receivables and other receivables, the Group applies a simplified approach in calculating ECLs based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group’s historical credit loss experience, adjusted for forwardlooking factors specific to the debtors and the economic environment. The expected credit losses are recognised in the consolidated income statement.

The Group consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit impaired. A financial asset is ‘creditimpaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit impaired includes the following observable data:

• significant financial difficulty of the debtor;

• a breach of contract such as a default or being more than 90 days past due;

• the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise;

Notes to the Consolidated Financial Statements As at 31 December 2021

• it is probable that the debtor will enter bankruptcy or other financial reorganisation; or

• the disappearance of an active market for a security because of financial difficulties.

Impairment of non-financial assets

The Group assesses at each reporting date whether there is an indication that a non-financial asset (other than inventories, contract assets and deferred tax assets) may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cashgenerating unit's (CGU) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded entities or other available fair value indicators.

Impairment losses are recognised in the consolidated income statement in those expense categories consistent with the function of the impaired asset. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset's or cash-generating unit's recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the consolidated income statement.

Financial liabilities and equity instruments issued by the Group

Debt and equity instruments are classified as either financial liabilities or as equity instruments in accordance with the substance of the contractual agreements. Financial liabilities within the scope of IFRS 9 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivative instrument as appropriate. The Group determines the classification of its financial liabilities at the initial recognition.

Trade and other payables

Liabilities are recognised for amounts to be paid in the future for goods or services received, whether billed by the supplier or not.

Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

Loans and borrowings

Term loans are initially recognised at the fair value of the consideration received less directly attributable transaction costs.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in the consolidated income statement when the liabilities are derecognised as well as through the amortisation process.

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

Other financial liabilities

Other financial liabilities are initially measured at fair value, net of transaction costs and are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. The Group also derecognises a financial liability when its terms are modified, and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any noncash assets transferred or liabilities assumed) is recognised in consolidated income statement.

Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

End-of-service benefits

The Group provides end-of-service benefits to its employees. The entitlement to these benefits is usually based upon the employees’ final salary and length of service, subject to the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment.

With respect to its eligible UAE and GCC national employees, the Group makes contributions to a pension fund established by the UAE General Pension and Social Security Authority calculated as a percentage of the employees’ salaries. The Group’s obligations are limited to these contributions, which are expensed when due.

Provisions

Provisions are recognised when the Group has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and the amount can be reliably estimated. When the Group

expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the consolidated income statement net of any reimbursement.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation at the end of the reporting period, using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

Provisions are reviewed at each statement of financial position date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

Fair value measurement

The Group measures financial instruments, such as investment in securities and hedges, at fair value at each reporting date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or the most advantageous market for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

For investments traded in an active market, fair value is determined by reference to quoted market bid prices.

The fair value of interest-bearing items is estimated based on discounted cash flows using interest rates for items with similar terms and risk characteristics.

For unquoted equity investments, fair value is determined by reference to the market value of a similar investment or is based on the expected discounted cash flows.

The fair value of forward foreign exchange contracts is calculated by reference to current forward exchange rates with the same maturity.

Fair value of interest rate swap contract is determined by reference to market value for similar instruments.

Notes to the Consolidated Financial Statements As at 31 December 2021

The Group uses valuation techniques that are appropriate in

the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 – Fair value measurements are those derived from quoted prices in an active market (that are unadjusted) for identical assets or liabilities.

• Level 2 – Fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 – Fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

For assets and liabilities that are recognised in the consolidated financial statements on a recurring basis, the Group determines whether transfers have occurred between

Levels in the hierarchy by re-assessing categorisation at the end of each reporting period.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3 SEGMENT INFORMATION

For management purposes, the Group is organised into one segment based on its products and services, which is the real estate development business. Accordingly, the Group only has one reportable segment. Management monitors the operating results of the business as a single unit for the purpose of making decisions about resource allocation and performance assessment.

Business segments

Revenue, operating results, assets and liabilities presented in the consolidated financial statements relates to the real estate development business of the Group.

Geographic segment

The Group is currently operating only in the UAE, hence the operating results, assets and liabilities presented it the consolidated financial statements relates to its operation in the UAE.

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

4 REVENUE AND COST OF REVENUE

	2021	2020
	AED’000	AED’000
Revenue
Sale of residential units	13,544,912	9,131,838
Sale of commercial units,plots of land and development services	2,056,980	626,445
	15,601,892	9,758,283
Cost of revenue
Cost of residential units	9,307,350	6,170,091
Cost of commercial units andplots of land	559,844	109,778
	9,867,194	6,279,869

Below is the split of revenue recognised over a period of time and single point in time:

	2021	2020
	AED’000	AED’000
- Over aperiod of time	14,100,874	9,309,025
- Singlepoint in time	1,501,018	449,258
	15,601,892	9,758,283

5 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
2021 AED’000	2020 AED’000
Sales and marketingexpenses 792,907	549,018
Payroll and related expenses 140,030	163,454
Propertymanagement expenses 80,963	125,592
Depreciation (includingright-of use assets) (note 14) 12,401	18,883
Other expenses 627,207	447,901
1,653,508	1,304,848

During the year ended 31 December 2021, no social contribution has been made by the Group (2020: Nil).

6 FINANCE INCOME

	2021	2020
	AED’000	AED’000
Finance income on fxed and call deposits with banks	13,221	40,460
Other fnance income (i)	110,877	16,265
	124,098	56,725

Notes to the Consolidated Financial Statements

As at 31 December 2021

7 FINANCE COSTS

FINANCE COSTS
	2021	2020
	AED’000	AED’000
Finance costs – bank and relatedpartyborrowings (note 24)	94,032	143,474
Other fnance costs (i)	174,289	156,838
	268,321	300,312

(i) During the year, the Group has recorded finance cost on unwinding of long-term payable amounting to AED 157,212 thousands (2020: AED 137,227 thousands).

8 BANK BALANCES AND CASH

BANK BALANCES AND CASH
	2021	2020
	AED’000	AED’000
Cash in hand	991	993
Current and call bank deposit accounts	5,687,664	3,349,004
	5,688,655	3,349,997

As at 31 December 2021, Cash and cash equivalent is AED 5,605,285 thousands (2020: AED 3,307,800 thousands) which is after net of facilities obtained from various commercial banks in the UAE and are repayable on demand. Also refer note 18.

Cash at banks earn interest at fixed rates based on prevailing bank deposit rates. Short-term fixed deposits are made for varying periods between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.

As at 31 December 2021, an amount of AED 5,624,497 thousands (2020: AED 3,278,834 thousands) are with banks against advances received from customers on sale of development properties which are deposited into escrow accounts. These deposits/ balances are not under lien.

9 TRADE AND UNBILLED RECEIVABLES

TRADE AND UNBILLED RECEIVABLES
2021	2020
AED’000	AED’000
Trade receivables
Amounts receivables within 12 months, net 753,848	1,272,402
Unbilled receivables
Unbilled receivables within 12 months 4,988,216	4,045,017
Unbilled receivables after 12 months, net 8,853,560	4,375,217
13,841,776	8,420,234
Total trade and unbilled receivables 14,595,624	9,692,636

The above trade and unbilled receivables are net of AED 48,497 thousands (2020: AED 48,497 thousands) relating to provision for doubtful debts representing management’s best estimate of expected loss on trade receivables which are past due for more than 90 days. All other receivables are considered recoverable.

(i) During the year, the Group has recorded finance income on unwinding of long-term receivable amounting to AED 110,296 thousands (2020: AED 16,265 thousands).

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

Movement in the provision for doubtful debts during the year is as follows:

==> picture [470 x 90] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|2021|2020|
|AED’000|AED’000|
|Balance at the beginning of the year|48,497|56,629|
|Provision made during the year|-|10,875|
|Reversed during the year|-|(19,007)|
|Balance at the end of the year|48,497|48,497|

----- End of picture text -----

At 31 December, the ageing analysis of net trade and unbilled receivables is as follows:

==> picture [470 x 77] intentionally omitted <==

----- Start of picture text -----

||||||||
|---|---|---|---|---|---|---|
|Neither past|Past due but not impaired|
|due nor|Less than|Between|Between|More than|
|Total|impaired|30 days|31 to 60 days|61 to 90 days|90 days|
|AED’000|AED’000|AED’000|AED’000|AED’000|AED’000|
|2021|14,595,624|13,841,776|247,961|62,975|23,644|419,268|
|2020|9,692,636|8,420,234|73,616|89,286|41,693|1,067,807|

----- End of picture text -----

Refer note 27(a) on credit risks of trade and unbilled receivables, which discusses how the Group manages and measures credit quality of trade and unbilled receivables that are neither past due nor impaired.

10 OTHER ASSETS, RECEIVABLES, DEPOSITS AND PREPAYMENTS

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----- Start of picture text -----

||||
|---|---|---|
|2021|2020|
|AED’000|AED’000|
|Due from related parties (note 24)|1,655,496|3,235,173|
|Advances to contractors and others|429,017|661,377|
|Deferred sales commission (i)|783,683|621,241|
|Value added tax recoverable|46,069|104,579|
|Prepayments|3,856|7,182|
|Other receivables and deposits|24,677|39,153|
|2,942,798|4,668,705|

----- End of picture text -----

Other assets, receivables, deposits and prepayments are due within 12 months from the reporting date (2020: AED 2,997,705 thousands)

(i) The deferred sales commission expense incurred to obtain or fulfil a contract with the customers is amortised over the period of satisfying performance obligations where applicable.

11 DEVELOPMENT PROPERTIES

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----- Start of picture text -----

||||
|---|---|---|
|2021|2020|
|AED’000|AED’000|
|Balance at the beginning of the year|14,469,588|14,739,325|
|Add: Costs incurred during the year|6,577,215|5,825,355|
|Less: Costs transferred to cost of revenue during the year|(9,867,194)|(6,279,869)|
|Less: Transferred from Parent Group (note 24)|-|184,777|
|Balance at the end of the year|11,179,609|14,469,588|

----- End of picture text -----

Notes to the Consolidated Financial Statements

As at 31 December 2021

Properties acquired, constructed or in the course of construction for sale in the ordinary course of business are classified as development properties and include the costs of:

• Freehold and leasehold rights for land;

• Amounts paid to contractors for construction including the cost of construction of infrastructure; and

• Borrowing costs, planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes, construction overheads and other related costs.

Common infrastructure cost is allocated to various projects and forms part of the estimated cost to complete a project in order to determine the cost attributable to revenue being recognised. The development span of some of the development properties is estimated to be over 10 years.

During the year 31 December 2021, an amount of AED 5,205 thousands (2020: AED 106,188 thousands) was capitalised as cost of borrowings for the construction of development properties.

12 LOANS TO JOINT VENTURES

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||||
|---|---|---|
|2021|2020|
|AED’000|AED’000|
|Emaar Dubai South DWC LLC|843,493|861,359|
|Old Town Views LLC|136,236|113,889|
|979,729|975,248|

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Loans to joint ventures are unsecured, and are repayable as per the terms of the agreement and does not carry any interest.

13 INVESTMENTS IN JOINT VENTURES

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||||
|---|---|---|
|2021|2020|
|AED’000|AED’000|
|Emaar Dubai South DWC LLC (i)|299,270|197,943|
|Zabeel Square LLC (ii)|234,536|234,536|
|Old Town Views LLC (iii)|217,440|83,883|
|Net investment in joint ventures as at year end|751,246|516,362|

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• (i) During 2015, the Parent Group entered into a joint venture agreement with Dubai Aviation City Corporation for the development of the Emaar South project. The joint venture was incorporated in the UAE on 9 May 2016 and operates under the name of Emaar Dubai South DWC LLC (“Emaar South”), in which the Parent has a 50% interest. The entity is primarily involved in property development activities. Also refer Note 24 (ii)

• (ii) On 9 January 2017, the Parent Group entered into a joint venture agreement with Meraas Zabeel Owned by Meraas Venture One Person Group LLC for the purpose of mix-use development in the UAE. The Parent has 50% equity interest in the joint venture group, Zabeel Square LLC (“Zabeel Square”). Also refer Note 24 (ii)

• (iii) On 15 May 2018, the Group entered into a joint venture agreement with certain land-owners of Burj Khalifa Master Community with the objective of developing the land and selling properties in the UAE. The Group has 61.25% equity interest in the joint venture group, Old Town Views LLC(“Old Town”).

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

The Group has the following effective ownership interest in its joint ventures:

	Country of	Ownership
	incorporation	2021	2020
Emaar Dubai South DWC LLC	UAE	50.00%	50.00%
Zabeel Square LLC	UAE	50.00%	50.00%
Old Town Views LLC	UAE	61.25%	61.25%

The following table summarises the statement of comprehensive income of the Group’s joint ventures for the year ended 31 December 2021:

	Emaar Dubai South DWC LLC Zabeel Square LLC Old Town Views LLC AED’000 AED’000 AED’000	Total AED’000
Revenue	989,956 - 492,624	1,482,580
Total comprehensive income for theyear	202,655 - 218,053	420,708
Proft attributable to owners of the entities	202,655 - 218,053	420,708
Group’s share ofproft for theyear	101,327 - 133,557	234,884

The following table summarises the statement of comprehensive income of the Group’s joint ventures for the year ended 31 December 2020:

	Emaar Dubai	Zabeel	Old Town Views	Total
	South DWC	Square LLC	LLC
	LLC
	AED’000	AED’000	AED’000	AED’000
Revenue	179,894	-	292,720	472,614
Total comprehensive income for theyear	28,316	26	136,650	164,992
Proft attributable to owners of the entities	28,316	26	136,650	164,992
Group’s share ofproft for theyear	14,158	13	83,698	97,869

No dividend is received during the year from joint ventures.

The following table summarises the statements of financial position of the Group’s joint ventures as at 31 December 2021:

	Emaar Dubai South DWC LLC Zabeel Square LLC Old Town Views LLC AED’000 AED’000 AED’000	Total AED’000
Total assets (includingcash and cash	1,946,533 643,119 564,423	3,154,075
equivalents of AED 714,620 thousands)
Total liabilities	1,347,993 174,047 209,419	1,731,459
Net assets	598,540 469,072 355,004	1,422,616
Group’s share of net assets	299,270 234,536 217,440	751,246

Notes to the Consolidated Financial Statements

As at 31 December 2021

The following table summarises the statements of financial position of the Group’s joint ventures as at 31 December 2020:

	Emaar Dubai	Zabeel	Old Town
	South DWC LLC	Square LLC	Views LLC	Total
	AED’000	AED’000	AED’000	AED’000
Total assets (includingcash and cash	2,041,425	643,119	327,274	3,011,818
equivalents of AED 707,717 thousands)
Total liabilities	1,645,539	174,047	190,322	2,009,908
Net assets	395,886	469,072	136,952	1,001,910
Group’s share of net assets	197,943	234,536	83,883	516,362

As at 31 December 2021, the Group’s joint ventures has commitments of AED 2,446,198 thousands (2020: AED 3,099,307 thousands).

14 PROPERTY, PLANT AND EQUIPMENT

2021:	Land and building AED’000	Computers and ofce equipment AED’000	Furniture and fxtures AED’000	Motor vehicles AED’000	Right-of-use of assets AED’000	Total AED’000
Cost:
At 1January2021	58,357	16,129	24,297	30	13,319	112,132
Additions	-	32	187	22	2,689	2,930
At 31 December 2021	58,357	16,161	24,484	52	16,008	115,062
Accumulated depreciation:
At 1January2021	28,693	11,014	22,690	14	13,319	75,730
Depreciation charge for the	5,836	3,526	344	6	2,689	12,401
year (note 5)
At 31 December 2021	34,529	14,540	23,034	20	16,008	88,131
Net carrying amount:
At 31 December 2021	23,828	1,621	1,450	32	-	26,931
2020:	Land and	Computers	Furniture	Motor	Right-of-use	Total
	building	and ofce equipment	and fxtures	vehicles	of assets
	AED’000	AED’000	AED’000	AED’000	AED’000	AED’000
Cost:
At 1January2020	58,357	16,098	23,684	24	13,319	111,482
Additions	-	31	613	6	-	650
At 31 December 2020	58,357	16,129	24,297	30	13,319	112,132
Accumulated depreciation:
At 1January2020	22,857	6,154	19,853	9	7,974	56,847
Depreciation charge for the	5,836	4,860	2,837	5	5,345	18,883
year (note 5)
At 31 December 2020	28,693	11,014	22,690	14	13,319	75,730
Net carrying amount:
At 31 December 2020	29,664	5,115	1,607	16	-	36,402

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

15 TRADE AND OTHER PAYABLES

TRADE AND OTHER PAYABLES
2021	2020
AED’000	AED’000
Project contract cost accruals andprovisions 4,018,227	3,135,962
Creditors for landpurchase 2,916,393	3,564,953
Payable to relatedparties (note 24) 2,636,728	4,508,768
Tradepayables (i) 798,763	928,247
Sales commissionpayable 221,003	120,583
Payable to authorities 159,334	182,537
Otherpayables and accruals 450,641	446,714
11,201,089	12,887,764

• (i) Trade payables include Supplier factoring facility of AED 154,471 thousands (31 December 2020: AED 42,533 thousands) under which its suppliers elect to receive early payment of their invoice from a bank by factoring their receivable from the Group. Under the arrangement, a bank agrees to pay amounts to participating supplier in respect of invoices owed by the Group and receives settlement from the Group at a later date.

Trade and other payables (other than payable to related parties (refer note 24(iii)) are non-interest bearing and for explanations on the Group’s liquidity risk management process and maturity profile of financial liabilities, refer note 27(c).

16 ADVANCES FROM CUSTOMERS

ADVANCES FROM CUSTOMERS
	2021 AED’000	2020 AED’000
Balance at the beginningof theyear	2,733,041	3,426,359
Add: Additions duringtheyear	16,777,478	8,841,111
Less: Revenue recognised duringtheyear	(15,045,930)	(9,534,429)
Balance at the end of theyear	4,464,589	2,733,041

The aggregate amount of the sale price allocated to the performance obligations of the Group that are unsatisfied / partially unsatisfied as at 31 December 2021 is AED 22,610,996 thousands (2020: AED 17,394,928 thousands). The Group expects to recognise these unsatisfied performance obligations as revenue over a period of 1-5 years.

17 RETENTIONS PAYABLE

RETENTIONS PAYABLE
	2021	2020
	AED’000	AED’000
Retentionspayable within 12 months	452,835	454,466
Retentionspayable after 12 months	351,001	400,158
	803,836	854,624

Notes to the Consolidated Financial Statements

As at 31 December 2021

18 INTEREST-BEARING LOANS AND BORROWINGS

	2021	2020
	AED’000	AED’000
Balance at the beginningof theyear	3,715,197	3,763,267
Add: Borrowings drawn down duringtheyear	683,370	449,239
Less: Repaid duringtheyear	(1,138,059)	(497,309)
Balance at the end of theyear	3,260,508	3,715,197
Less: Unamortisedportion of directlyattributable costs	(1,841)	(3,751)
Net interest-bearing loans and borrowings at the end of theyear	3,258,667	3,711,446
Interest-bearing loans and borrowings maturity profle:
Within 12 months *	3,059,265	42,197
After 12 months	199,402	3,669,249
	3,258,667	3,711,446

During 2019, the Group had availed 6-year Revolving credit facility (“RCF facility”) of USD 1,000,000 thousands (AED 3,673,000 thousands). This RCF facility is unsecured and carries interest rate at 3 months LIBOR plus 1.25% per annum. This RCF facility carries certain financial covenants. As at 31 December 2021, the Group has drawn down USD 865,000 thousands (AED 3,177,188 thousands) from the RCF facility. This RCF facility is an interest-bearing loan and is presented in the consolidated financial statement at AED 3,175,297 thousands (31 December 2020: AED 3,669,249 thousands) net of unamortised directly attributable transaction cost.

During the year, the Group executed short term facility of AED 600,000 thousands. This facility carries interest of EIBOR plus 1% per annum and is secured by a corporate guarantee from the Parent Group. As at 31 December 2021, the Group has not drawn down and availed any amount from the facility.

As at 31 December 2021, included under interest-bearing loans and borrowings is AED 83,370 thousands (31 December 2020: AED 42,197 thousands) which represents facilities obtained from various commercial banks in the UAE and is repayable on demand.

• Mainly represents payable for RCF facilty which can be extened if required

19 SHARE CAPITAL

SHARE CAPITAL
2021	2020
AED’000	AED’000
Authorised capital: 8,000,000,000 shares of AED 1 each
(2020: 8,000,000,000 shares of AED 1 each) 8,000,000	8,000,000
Issued and fully paid-up: 4,000,000,000 shares of AED 1 each
(2020: 4,000,000,000 shares of AED 1 each) 4,000,000	4,000,000

20 LEGAL RESERVE

According to Article number 61 of the Articles of Association of the Group and Article 239 of the UAE Federal Law No. (2) of 2015, 10% of the annual net profit shall be allocated to legal reserve until it reaches 50% of the paid-up share capital. The Group has transferred AED 324,434 thousands (2020: AED 165,731 thousands) to legal reserve from net profit for the year.

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CONSOLIDATED FINANCIAL STATEMENTS

As at 31 December 2021

As at 31 December 2021

Notes to the Consolidated Financial Statements

21 EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing net profit or loss for the year attributable to the owners of the Group by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit or loss attributable to the owners of the Group by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

The information necessary to calculate basic and diluted earnings per share is as follows:

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||||
|---|---|---|
|2021|2020|
|AED’000|AED’000|
|Earnings:|
|Profit attributable to the owners of the Group|3,244,339|1,657,310|
|2021|2020|
|AED’000|AED’000|
|Number of shares in thousands|
|Weighted-average number of ordinary shares for basic earnings per share|4,000,000|4,000,000|
|2021|2020|
|AED’000|AED’000|
|Earnings per share:|
|- basic and diluted earnings per share (AED)|0.81|0.41|

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22 GUARANTEES AND CONTINGENCIES

The Group has provided a performance guarantee of AED 6,351,465 thousands (2020: AED 6,503,506 thousands) to the Real Estate Regulatory Authority (RERA), Dubai for its projects as per RERA regulations.

23 COMMITMENTS

As at 31 December 2021, the Group has commitments of AED 4,384,786 thousands (2020: AED 6,434,085 thousands). This represents the value of contracts entered into by the Group including contracts entered for purchase of plots of land at year end, net of invoices received, and accruals made at that date.

Furthermore, in accordance with the Development Agreement entered by the Group with Mina Rashid, the Group has a commitment to pay 30% of future profits over the project life cycle of Mina Rashid Project.

There are certain claims submitted by contractors relating to various projects of the Group in the ordinary course of business from which it is anticipated that no material unprovided liabilities will arise.

24 RELATED PARTY DISCLOSURES

For the purpose of these consolidated financial statements, parties are related to the Group, if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control (Affiliated entities). Related parties may be individuals or other entities.

The Group in the normal course of business enters into transactions with individuals and other entities that falls within the definition of related party. The Group’s related parties include key management personnel, entities held under common control, associates, joint ventures and others.

Notes to the Consolidated Financial Statements

The Group’s parent group is partly owned by Investment Corporate of Dubai (“ICD”), an entity owned by the Government of Dubai (“Government”). The Group enters into transactions, in the normal course of business, with Government-owned entities and entities wherein ICD has control, joint control or significant influence. In accordance with the exemption available in IAS 24, management has elected not to disclose such transactions, which are primarily in nature of financing and operational related activities, and entered in the normal course of business at commercial terms.

Related party transactions

During the year, the following were the significant related party transactions, which were carried out in the normal course of business on terms agreed between the parties:

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||||
|---|---|---|
|2021|2020|
|AED’000|AED’000|
|Parent:|
|Revenue (refer (ii) below)|497,317|207,257|
|Selling, general and administrative expenses (refer (i) below)|489,943|293,041|
|Finance cost (refer (iii) below)|40,355|59,856|
|Funding received (refer (iii) below)|-|655,000|
|Funding repaid (refer (iii) below)|-|(825,000)|
|Transfer of development properties from parent|-|184,777|
|Affiliated entities:|
|Selling, general and administrative expenses|64,607|14,160|
|Property development expenses|52,618|92,480|
|Directors, Key management personnel and their related parties:|
|Selling, general and administrative expenses|1,046|413|

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Related party balances

Significant related party balances (and the consolidated statement of financial position captions within which these are included) are as follows:

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||||
|---|---|---|
|2021|2020|
|AED’000|AED’000|
|Parent:|
|Other assets, receivables, deposits and prepayments (refer (ii) below)|1,631,162|3,207,391|
|Trade and other payables (refer (i) and (iii) below)|2,598,805|4,475,696|
|Affiliated entities:|
|Other assets, receivables, deposits and prepayments|24,334|27,782|
|Trade and other payables|37,923|33,072|

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(i) Allocation of corporate expenses:

The Parent Group has provided certain corporate functions to the Group and costs associated with these functions were allocated to the Group. These functions included human resources, treasury, investor relations, finance and accounting, compliance, information technology, corporate and legal compliance, business development and marketing. As per Relationship Agreement, corporate expenses are allocated by the Parent on the basis of 3% of revenue of the Group. During the current year, the Group and the Parent agreed to settle AED 2,520,438 thousands payable by the Group to the Parent by offsetting against receivable of AED 4,151,600 thousands from the Parent as at 31 December 2021.

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

• (ii) Recoverable from the Parent:

This mainly represents balances recoverable from the Parent with respect to the development costs incurred for the Build-tosell (BTS) developments in Dubai Creek Harbour project. As agreed in the Master Transfer Agreement (MTA), the Parent has transferred the development services relating to the BTS development in Dubai Creek Harbour project to the Group, for which the development costs including infrastructure costs are incurred by the Group. These balances will be recovered as per the agreed terms in the MTA.

• (iii) Payable to the Parent Group:

Amount due to the Parent Group is unsecured. This includes AED 2,584,750 thousands (2020: AED 2,584,750 thousands) which carries interest rate at 3 months LIBOR plus 1.4% per annum. Also refer note 15. The Group has total credit facility of USD 1,350,000 thousands (AED 4,958,550 thousands).

Compensation of key management personnel

The remuneration of key management personnel during the year was as follows:

	2021	2020
	AED’000	AED’000
Short-term benefts	42,142	54,564
Employees’ end-of-service benefts	1,888	1,630
	44,030	56,194

During the year, the number of key management personnel is 34 (2020: 39).

During the year, the Group has paid a bonus of AED 3,900 thousands to the non-executive members of the Board of Directors for the year 2020 as approved by the shareholders at the Annual General Meeting of the Group held on 8 April 2021 (2020: AED 4,900 thousands).

25 FAIR VALUES OF FINANCIAL INSTRUMENTS

Financial instruments comprise financial assets and financial liabilities.

Financial assets of the Group include bank balances and cash, trade and unbilled receivables, loans to joint ventures, other receivables, deposits and due from related parties. Financial liabilities of the Group include interest-bearing loans and borrowings, trade payable, retentions payable, payable to related parties and other payables.

Fair value of the financial instruments is included at the amounts at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The fair values of financial instruments are not materially different from their carrying values largely due to the short-term maturities of these instruments.

26 DIVIDEND

No dividend was approved by the shareholders of the Group at the Annual General Meeting held on 8 April 2021 for the year ended 2020.

The Board of Directors of the Group has proposed not to pay dividend for the year ended 2021.

Notes to the Consolidated Financial Statements

As at 31 December 2021

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk and the Group’s management of capital.

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. Group’s senior management are responsible for developing and monitoring the Group’s risk management policies and report regularly to the Board of Directors on their activities.

The Group’s current financial risk management framework is a combination of formally documented risk management policies in certain areas and informal risk management policies in others. The Group’s risk management policies (both formal and informal) are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.

The Group’s Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group’s Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Group’s principal financial liabilities comprise interest-bearing loans and borrowings, retentions payable, amount due to related parties and trade and other payables. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various financial assets such as bank balances and cash, trade and unbilled receivables, loan to joint ventures, amount due from related parties and other receivables and deposits, which arise directly from its operations.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below:

a) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group is exposed to credit risk principally from its receivables from customers, related parties including joint ventures, other receivables and from its financing activities, including deposits with banks and financial institutions.

Trade, unbilled and other receivables

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Group’s customer base, including the default risk of the industry and country, in which customers operate, has less influence on credit risk.

The Group has entered into contracts for the sale of residential and commercial units and plots of land on an instalment basis. The instalments are specified in the contracts. The Group is exposed to credit risk in respect of instalments due. However, the legal ownership of residential, commercial units and plots of land is transferred to the buyer only after all the instalments are recovered. In addition, instalment dues are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.

The Group establishes an allowance for impairment at each reporting date that represents its estimate of expected credit losses in respect of trade, unbilled and other receivables. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. The Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking information.

Due from related parties relates to transactions arising in the normal course of business with minimal credit risk.

27 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Overview

The Group has exposure to the following risks from its use of financial instruments:

a) Credit risk;

• b) Market risk; and

• c) Liquidity risk.

• d) Capital management

Other financial assets and cash deposits

With respect to credit risk arising from the other financial assets of the Group, which comprise bank balances and cash, loans to joint ventures, other receivables and deposits, the Group’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these assets.

Credit risk from balances with banks and financial institutions is managed by Group’s treasury in accordance with the Group’s policy. The Group limits its exposure to credit risk by only placing balances with local banks of good repute. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its obligations.

Total financial assets at amortized cost amounted to AED 22,970,076 thousands (2020: AED 17,284,957 thousands).

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CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

As at 31 December 2021

Guarantees

The Group’s policy is to provide financial guarantees to its subsidiaries and certain joint ventures. For details of guarantees outstanding as at the reporting date refer note 22 to the consolidated financial statements.

Excessive risk of concentration

Concentration arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Group’s performance to developments affecting a particular industry.

In order to avoid excessive concentration of risk, the Group’s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Selective hedging is used within the Group to manage risk concentrations at both the relationship and industry levels.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices, such as currency risk and interest rate risk, which will affect the Group’s income or the value of its holdings of financial instruments. Financial instruments affected by market risk include interest-bearing loans and borrowings and deposits. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Exposure to interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with floating interest rates.

The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. Interest on financial instruments having floating rates is re-priced at intervals of less than one year and interest on financial instruments having fixed rates is fixed until the maturity of the instrument. Other than commercial and overall business conditions, the Group’s exposure to market risk for changes in interest rate environment relates mainly to its borrowing from financial institutions.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the Group’s profit before tax (through the impact on floating rate borrowings):

	2021 2020
	Change in basis points Sensitivity of interest income/ expense Change in basis points Sensitivity of interest income/ expense AED’000 AED’000
Interest-bearingloans and borrowings	+ 100 32,605 + 100 37,152
Trade and otherpayables	+ 100 25,848 + 100 25,848

The interest rate sensitivity set out above relates primarily to the AED denominated financial assets and financial liabilities as the Group does not have any significant net exposure for financial assets and financial liabilities denominated in currencies other than the AED.

c) Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (e.g. trade receivables, other financial assets) and projected cash flows from operations.

Notes to the Consolidated Financial Statements

As at 31 December 2021

control of Group Treasury. The objective of this centralised system is to optimise the efficiency and effectiveness of the management of the Group’s capital resources. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and bank borrowings. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and borrowing facilities from Parent, by continuously monitoring forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Group currently has sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations.

The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:e

As at 31 December 2021

Financial liabilities	Less than 1 year AED’000	1 to 5 years AED’000	Over 5 years AED’000	Total AED’000
Interest-bearingloans and borrowings	3,118,690	212,858	-	3,331,548
Retentionspayable	452,835	351,001	-	803,836
Trade and otherpayable	6,902,326	3,829,124	767,309	11,498,759
Total undiscounted fnancial liabilities	10,473,851	4,392,983	767,309	15,634,143
As at 31 December 2020
Financial liabilities	Less than	1 to 5	Over
	1 year	years	5 years	Total
	AED’000	AED’000	AED’000	AED’000
Interest-bearingloans and borrowings	100,743	3,740,113	-	3,840,856
Retentionspayable	454,466	400,158	-	854,624
Trade and otherpayable	8,934,685	3,328,504	1,055,711	13,318,900
Total undiscounted fnancial liabilities	9,489,894	7,468,775	1,055,711	18,014,380

d) Capital management

Capital includes equity attributable to the equity holders of the Parent. The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The primary objective of the Group’s capital management strategy is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group’s policy is to keep the gearing ratio below 50%. The Group includes within net debt interest bearing loans and borrowings less cash and cash equivalents. Capital includes equity attributable to the owners of the Parent less the net unrealised gains/ (losses) reserve. The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.

The Board of Directors also monitors the return on capital, which the Group defines as net operating income divided by total shareholders’ equity, excluding minority interests. The Board of Directors also monitors the level of dividends to shareholders, the return on capital to shareholders or issuance of new shares to maintain or adjust the capital structure.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 December 2021 and 31 December 2020.

Neither the Group nor any of its subsidiaries is subject to externally imposed capital requirements other than the statutory requirements in the jurisdictions where the Group entities are incorporated.

The cash flows, funding requirements and liquidity of Group companies are monitored on a centralised basis, under the

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Notes to the Consolidated Financial Statements

As at 31 December 2021

28 NON-CONTROLLING INTEREST (NCI)

Financial information of subsidiary of the Group that have material non-controlling interest (NCI) are provided below:

	Country of	NCI holding	NCI holding
	incorporation	2021	2020
Dubai Hills Estate LLC	UAE	50%	50%

The following table summarises the statement of financial position of a partially owned material subsidiary as at 31 December 2021. This information is based on the amounts before inter-group elimination.

	Dubai Hills Estate LLC 2021 2020 AED’000 AED’000
Total assets	7,276,266 7,027,672
Total liabilities	3,431,124 2,532,872
Total equity	3,845,142 4,494,800
Attributable to:
Owners of the Group	1,922,571 2,247,400
Non-controllinginterest	1,922,571 2,247,400

The following table summarises the income statement of this subsidiary as at 31 December 2021. This information is based on the amounts before inter-group elimination.

Non-controllinginterest 1,922,571 2,247,400 Te following table summarises the income statement of this subsidiary as at 31 December 2021. Tis information is based on the amounts before inter-group elimination.	Non-controllinginterest 1,922,571 2,247,400 Te following table summarises the income statement of this subsidiary as at 31 December 2021. Tis information is based on the amounts before inter-group elimination.
Dubai Hills Estate LLC
2021	2020
AED’000	AED’000
Revenue 4,323,781	2,461,306
Proft for theyear 1,976,342	796,440
Total comprehensive income for theyear 1,976,342	796,440
Attributable to:
Owners of the Group 988,171	398,220
Non-controllinginterest 988,171	398,220

The following table summarises the cash flow statement of this subsidiary as at 31 December 2021. This information is based on the amounts before inter-group elimination.

	Dubai Hills Estate LLC 2021 2020 AED’000 AED’000
Cash from operatingactivities 3,088,927 1,928,585
Cash from investingactivities 3,490 12,532
Cash used in fnancingactivities (2,630,734) (1,810,196)
Net increase in cash and cash equivalents 461,683 130,921

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CONSOLIDATED FINANCIAL STATEMENTS

GRI Index

GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
GENERAL DISCLOSURES
ORGANIZATIONAL PROFILE
102-1	Name of the organization	Emaar Development PJSC (DFM:EMAARDEV)
102-2	Activities, brands,products and services	Our Business
102-3	Location of headquarters	Emaar Development’s corporate headquarters is located in Dubai, UAE.
102-4	Location of operations	Our Business
102-5	Ownershipand legal form	Corporate Governance Report,page 84-113
102-6	Markets served	Our Business
102-7	Scale of the organization	Annual Report,pages 12 - 17
102-8	"Information on employees and other workers"	Society—Talent Attraction, Engagement and Retention
GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
GENERAL DISCLOSURES
102-9	Supply chain	Emaar Development’s supply chain is limited to
		its corporate operations and portfolio
		properties. We directly engage with a number
		of third-party suppliers for the procurement of
		materials and services for the construction of new
		development projects and ongoing operation of
		existingbuildings.
102-10	Signifcant changes to organization and supply chain	We had no signifcant changes to our organization
		or our supplychain in 2021.
102-11	Precautionary Principle or approach	Emaar Development does not currently address
		the PrecautionaryPrinciple.
102-12	External initiatives	IndustryAssociations and External Initiatives
102-13	Membershipof associations	IndustryAssociations and External Initiatives
STRATEGY
102-14	Statement from senior decision-maker	ManagingDirector’s Message
102-16	Values,principles, standards and norms of behavior	Business Ethics
102-17	Mechanisms for advice and concerns about ethics	Business Ethics
GOVERNANCE
102-18	Governance structure	Governance and Board Oversight,page 85
102-19	Delegatingauthority	Governance and Board Oversight,page 85

GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
GENERAL DISCLOSURES
102-20	Executive-level responsibility for economic, environmental and social topics	Corporate Governance Report, page 84
102-32	Highestgovernance body’s role in sustainabilityreporting	Corporate Governance Report,page 84
STAKEHOLDER ENGAGEMENT
102-40	List of stakeholdergroups	MaterialityReport,page 24
102-42	Basis for identifyingand selectingstakeholders	MaterialityReport,page 24
102-43	Approach to stakeholder engagement	MaterialityReport,page 24
102-44	Key topics, concerns raised, which stakeholder group raised each key topic/concern, and how the organization has responded (includingthrough reporting)	Materiality Report, page 24
REPORTING PRACTICES
102-45	Entities included in consolidated fnancial statements
102-46	Process for defning report content and topic Boundaries: how the reporting principles for defning report content were applied	Materiality Report, page 24
102-47	List of material topics	MaterialityReport,page 24
102-48	Efect of restatements of information and reasons for them	NA
102-49	Changes in reporting	NA
GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
GENERAL DISCLOSURES
102-50	Reporting period	All data presented covers calendar year 2021
		unless otherwise stated.
102-51	Date of most recent report	Sustainability& Annual Reports 2020
102-52	Reportingcycle	Annually&Quarterly
102-53	Contactpoint forquestions	Mr. AbhaySinghvi
		Investor Relations - ASinghvi@emaar.ae
102-54	Core or comprehensive claim	ReportingApproach
102-55	GRI Index	Tis document represents Emaar Development’s
		content index.
102-56	Policy/practice for external assurance	2020 Assurance Statement

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CONSOLIDATED FINANCIAL STATEMENTS

GRI Index

GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
TOPIC-SPECIFIC DISCLOSURES
ECONOMIC PERFORMANCE
GRI 103: Management Approach	103-1 Explanation of the material topic and its Boundaries	Management Discussion and Analysis, page 66
	103-2 Te management approach and its components	Management Discussion and Analysis,page 66
	103-3 Evaluation of the management approach	Management Discussion and Analysis,page 66
GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
TOPIC-SPECIFIC DISCLOSURES
ENERGY
GRI 103: Management	103-1 Explanation of the material topic and its	Focus area 5: Sustainability, page 60
Approach	Boundaries
		Focus area 5: Sustainability,page 60
	103-2 Te management approach and its components	Focus area 5: Sustainability,page 60
	103-3 Evaluation of the management approach	Focus area 5: Sustainability,page 60
302-1	Energyconsumption within the organization	Focus area 5: Sustainability,page 60
		Focus area 5: Sustainability,page 60
302-4	Reduction of energyconsumption	Focus area 5: Sustainability,page 60
EMISSIONS
GRI 103: Management	103-1 Explanation of the material topic and its	Focus area 5: Sustainability, page 60
Approach	Boundaries
	103-2 Te management approach and its components	Focus area 5: Sustainability,page 60
	103-3 Evaluation of the management approach	Focus area 5: Sustainability,page 60

GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
TOPIC-SPECIFIC DISCLOSURES 305-2 Indirect (Scope 2) GHG emissions		Focus area 5: Sustainability,page 60
305-5	Reduction of GHG emissions	Focus area 5: Sustainability,page 60
EFFLUENTS AND WASTE
GRI 103: Management Approach	103-1 Explanation of the material topic and its Boundaries	Focus area 5: Sustainability, page 60
		Focus area 5: Sustainability,page 60
	103-2 Te management approach and its components	Focus area 5: Sustainability,page 60
	103-3 Evaluation of the management approach	Focus area 5: Sustainability,page 60
306-2	Waste bytype and disposal method	Focus area 5: Sustainability,page 60
TALENT ATTRACTION, ENGAGEMENT AND RETENTION
GRI 103: Management Approach	103-1 Explanation of the material topic and its Boundaries	Focus area 4: Our people, page 58
	103-2 Te management approach and its components	Focus areas: Health & Safety; Our people (52, 58)
	103-3 Evaluation of the management approach	Focus areas: Health & Safety; Our people (52, 58)
401-1	New employee hires and employee turnover	Focus areas: Health & Safety; Our people (52, 58)
401-2	Benefts provided to full-time employees that are not provided to temporaryorpart-time employees	Focus areas: Health & Safety; Our people (52, 58)
GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
TOPIC-SPECIFIC DISCLOSURES
TRAINING AND EDUCATION
GRI 103: Management	103-1 Explanation of the material topic and its	Focus area 4: Our people, page 58
Approach	Boundaries
	103-2 Te management approach and its components	Focus area 4: Ourpeople,page 58
	103-3 Evaluation of the management approach	Focus area 4: Ourpeople,page 58
404-2	Programs for upgrading employee skills and transition	Focus area 4: Our people, page 58
	assistanceprograms
404-3	Percentage of employees receiving regular performance	Focus area 4: Our people, page 58
	and career development reviews
DIVERSITY AND EQUAL OPPORTUNITY
GRI 103: Management	103-1 Explanation of the material topic and its	Focus area 4: Our people, page 58
Approach	Boundaries
	103-2 Te management approach and its components	Focus area 4: Ourpeople,page 58
	103-3 Evaluation of the management approach	Focus area 4: Ourpeople,page 58
405-1	Diversityofgovernance bodies and employees	Focus area 4: Ourpeople,page 58

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GRI Index

GRI STANDARD	DESCRIPTION	REPORT LOCATION OR DIRECT ANSWER
TOPIC-SPECIFIC DISCLOSURES
CUSTOMER HEALTH	AND SAFETY
GRI 103: Management	103-1 Explanation of the material topic and its	Focus area 1: Health & Safety, page 52
Approach	Boundaries
	103-2 Te management approach and its components	Focus area 1: Health & Safety,page 52
	103-3 Evaluation of the management approach	Focus area 1: Health & Safety,page 52
416-1	Assessment of the health and safety impacts of product	Focus area 1: Health & Safety, page 52
	and service categories
416-2	Incidents of non-compliance concerning the health and	Focus area 1: Health & Safety, page 52
	safetyimpacts ofproducts and services
		Focus area 1: Health & Safety,page 52

SUSTAINABLE BUILDINGS	SUSTAINABLE BUILDINGS
GRI 103: Management	103-1 Explanation of the material topic and its	Focus area 5: Sustainability, page 60
Approach	Boundaries
	103-2 Te management approach and its components	Focus area 5: Sustainability,page 60
	103-3 Evaluation of the management approach	Focus area 5: Sustainability,page 60
Group-specifc Metrics	LEED or equivalent certifed properties; Annual spend on	Focus area 5: Sustainability, page 60
	sustainability projects

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