EMAAR DEVELOPMENT PJSC — Annual Report 2025

Feb 14, 2025

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Consolidated Financial Statements For the Year Ended 31 December 2024

Table of Contents

	Pages
Directors' Report	1 - 2
Report on Audit of Consolidated Financial Statements	3 - 7
Consolidated Statement of Comprehensive Income	8
Consolidated Statement of Financial Position	9
Consolidated Statement of Changes in Equity	10 - 11
Consolidated Statement of Cash Flows	12
Notes to the Consolidated Financial Statements	13 – 43

KPMG Lower Gulf Limited The Offices 5 at One Central Level 4, Office No: 04.01 Sheikh Zayed Road, P.O. Box 3800 Dubai, United Arab Emirates Tel. +971 (4) 4030300, www.kpmg.com/ae

Independent auditors' report

To the Shareholders of Emaar Development PJSC

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Emaar Development PJSC ("the Company") and its subsidiaries ("the Group"), which comprise the consolidated statement of financial position as at 31 December 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising material accounting policies and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2024, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).

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.

Emaar Development PJSC Independent Auditors' Report 31 December 2024

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 period. 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 with IFRS 15 "Revenue from Contracts with Customers". The Group recognises revenue on sale of properties either at point in time or over time depending on the terms of contracts with its customer and the relevant laws and regulations of the jurisdiction in which it has entered into the contract with its customers. Revenue recognition on sale of properties was considered a key audit matter due to following key elements of judgement and estimation involved that warrant additional audit focus: • determining whether the performance obligations are satisfied over time or at a point in time; and • estimation of total costs required to meet performance obligations under the contracts with customers and for performance obligations satisfied over time, recognize revenue in proportion to the extent and upon satisfactory fulfillment of performance obligations;	We have assessed the appropriateness of the revenue recognition accounting policies adopted by the Group and its compliance with International Financial Reporting Standards ("IFRS"); Obtained an 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 have 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; On a sample basis, we have 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 have assessed the adequacy of the total estimated cost to complete through the management appointed external cost consultant's report, supporting agreements, retrospective evaluation of budgets and other relevant information. We have also evaluated, on a sample basis, the qualifications and competence of the management appointed cost consultants. 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

Key Audit Matters (continued)

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
	We assessed the adequacy of the Group's disclosure in relation to the requirements of IFRS 15.

Other Information

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

Our opinion on the consolidated financial statements does not cover the other information and we do not and will 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 identified above 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.

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

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 Accounting Standards, and their preparation in compliance with the applicable provisions of the UAE Federal Decree Law No. 32 of 2021 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.

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.

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.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes 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.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements (continued)

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 Decree Law No. 32 of 2021 we report that for the year ended 31 December 2024:

• 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 Decree Law No. 32 of 2021;
• 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;
• v) as disclosed in note 1 to the consolidated financial statements, the Group has not purchased any shares during the year ended 31 December 2024;
• vi) note 26 to the consolidated financial statements discloses material related party transactions and the terms under which they were conducted;
• 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 2024 any of the applicable provisions of the UAE Federal Decree Law No. 32 of 2021 or in respect of the Company its Articles of Association, which would materially affect its activities or its consolidated financial position as at 31 December 2024; and
• viii) note 5 to the consolidated financial statements discloses the social contributions made during the year ended 31 December 2024.

KPMG Lower Gulf Limited

Fawzi AbuRass Registration No.: 968 Dubai, United Arab Emirates

Date: 14 February 2025

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2024

		(US\$ 1.00 = AED 3.673)
	Notes	────────────────────── 2024 AED'000	2023 AED'000
Revenue	4	19,146,613	11,921,378
Cost of revenue	4	(8,490,029)	(3,513,128)
GROSS PROFIT		─────── 10,656,584	─────── 8,408,250
Selling, general and administrative expenses	5	(1,609,126)	(1,183,498)
Finance income	6	1,159,526	842,802
Finance costs	7	(401,789)	(333,172)
Other income	8	173,665	626,085
Share of results of joint ventures	15	194,167	123,609
PROFIT BEFORE TAX		─────── 10,173,027	─────── 8,484,076
Income tax expense	9	(486,367)	-
NET PROFIT FOR THE PERIOD		─────── 9,686,660	─────── 8,484,076
Other comprehensive income		-	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		─────── 9,686,660 ═══════	─────── 8,484,076 ═══════
ATTRIBUTABLE TO:
Owners of the Company		7,633,219	6,628,996
Non-controlling interest	30	2,053,441	1,855,080
		─────── 9,686,660 ═══════	─────── 8,484,076 ═══════
Earnings per share attributable to
the owners of the Company:
- basic and diluted earnings per share (AED)	23	1.91	1.66
		═══════	═══════

		$(US$ 1.00 = AED 3.673)$
	Notes	2024 AED'000	2023 AED'000
ASSETS
Bank and cash balances	10	23,569,621	18,421,670
Trade and unbilled receivables	11	11,457,373	12,020,373
Other assets, receivables, deposits and prepayments	12	6,091,832	4,479,910
Development properties	13	16,520,243	12,466,983
Loans to joint ventures	14	804,274	700,608
Investments in joint ventures	15	964,069	761,705
Property, plant and equipment	16	13,665	16,524
TOTAL ASSETS		59,421,077	48,867,773
LIABILITIES AND EQUITY
Liabilities
Trade and other payables Advances from customers	17 18	6,901,874 19,210,472	8,747,019
	9	486,367	12,716,232
Income tax payable	19	1,176,424	905,801
Retentions payable	20	3,673
Interest-bearing loans and borrowings Provision for employees' end-of-service benefits		26,977	3,673 24,318
TOTAL LIABILITIES		27,805,787	22,397,043
EQUITY
Equity attributable to owners of the Company
Share capital Reserves	21 22	4,000,000 2,000,150	4,000,000 2,000,150
Retained earnings		22,388,418	16,841,099
		28,388,568	22,841,249
Non-controlling interest	30	3,226,722	3,629,481
TOTAL EQUITY		31,615,290	26,470,730
TOTAL LIABILITIES AND EQUITY		59,421,077	48,867,773

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2024

		Attributable to the owners of the Company ──────────────────────────────────────────────────
	Share capital AED'000	Reserves AED'000	Retained earnings AED'000	Total AED'000	Non controlling interest AED'000	Total equity AED'000
Balance as at 1 January 2024	4,000,000	2,000,150	16,841,099	22,841,249	3,629,481	26,470,730
Profit for the year	-	-	7,633,219	7,633,219	2,053,441	9,686,660
Other comprehensive income for the year	-	-	-	-	-	-
Total comprehensive income for the year	─────── -	─────── -	─────── 7,633,219	─────── 7,633,219	─────── 2,053,441	──────── 9,686,660
Director's bonus (note 26)	-	-	(3,900)	(3,900)	-	(3,900)
Dividend paid to shareholders (note 28)	-	-	(2,082,000)	(2,082,000)	-	(2,082,000)
Dividend paid by a subsidiary (note 30)	-	-	-	-	(2,456,200)	(2,456,200)
Balance as at 31 December 2024	─────── 4,000,000 ═══════	─────── 2,000,150 ═══════	──────── 22,388,418 ════════	──────── 28,388,568 ════════	─────── 3,226,722 ═══════	──────── 31,615,290 ════════

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)

For the year ended 31 December 2024

		Attributable to the owners of the Company ───────────────────────────────────────────────
	Share capital AED'000	Reserves AED'000	Retained earnings AED'000	Total AED'000	Non controlling interest AED'000	Total equity AED'000
Balance as at 1 January 2023	4,000,000	1,560,615	12,736,538	18,297,153	1,774,401	20,071,554
Profit for the year	-	-	6,628,996	6,628,996	1,855,080	8,484,076
Other comprehensive income for the year	-	-	-	-	-	-
Total comprehensive income for the year	─────── -	─────── -	─────── 6,628,996	─────── 6,628,996	─────── 1,855,080	──────── 8,484,076
Director's bonus (note 26)	-	-	(3,900)	(3,900)	-	(3,900)
Dividend paid to shareholders	-	-	(2,081,000)	(2,081,000)	-	(2,081,000)
Transfer to reserve (note 22)	-	439,535	(439,535)	-	-	-
Balance as at 31 December 2023	─────── 4,000,000 ═══════	─────── 2,000,150 ═══════	──────── 16,841,099 ════════	──────── 22,841,249 ════════	─────── 3,629,481 ═══════	──────── 26,470,730 ════════

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2024

		(US\$ 1.00 = AED 3.673)
	Notes	────────────────────── 2024 AED'000	2023 AED'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax for the year		10,173,027	8,484,076
Adjustments for:
Share of results of joint ventures Depreciation (including right-of use assets)	15	(194,167)	(123,609) 12,515
Provision for employees' end-of-service benefits, net	5	8,459 2,659	709
Finance costs	7	401,789	333,172
Finance income	6	(1,159,526)	(842,802)
Cash from operations before working capital changes		─────── 9,232,241	─────── 7,864,061
Trade and unbilled receivables		731,486	3,591,115
Other assets, receivables, deposits and prepayments		(1,628,987)	195,372
Development properties		(4,053,260)	(1,616,164)
Advances from customers		6,494,240	3,089,220
Trade and other payables (note 2.2) Retentions payable		(95,061) 270,623	(3,343,594) (14,782)
Net cashflows generated from operating activities		─────── 10,951,282 ───────	─────── 9,765,228 ───────
CASH FLOWS FROM INVESTING ACTIVITIES
Finance income received		1,008,105	653,926
Loans (given to) / repaid by joint ventures		(30,959)	239,208
Dividend received from joint ventures	15	12,929	287,524
Addition to property, plant and equipment	16	(5,600) ───────	(8,883) ──────
Net cashflows generated from investing activities		984,475 ───────	1,171,775 ──────
CASH FLOWS FROM FINANCING ACTIVITIES
Finance costs paid		(335,706)	(226,297)
Borrowings from financial institutions		-	850,090
Repayment of loans to financial institutions		-	(1,700,000)
Borrowings from Parent	26	8,446,000	5,256,000
Repayment of loans to Parent	26	(10,356,000)	(5,930,750)
Dividends paid to shareholders Dividends paid to non-controlling interest	28 30	(2,082,000) (2,456,200)	(2,081,000) -
Director's bonus paid	26	(3,900)	(3,900)
Net cashflows used in financing activities		──────── (6,787,806)	──────── (3,835,857)
INCREASE IN CASH AND CASH EQUIVALENTS		──────── 5,147,951	──────── 7,101,146
Cash and cash equivalents at the beginning of the year		18,421,670	11,320,524
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	10	──────── 23,569,621	──────── 18,421,670

The accompanying notes 1 to 30 form an integral part of these consolidated financial statements.

════════ ════════

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2024

1 CORPORATE INFORMATION

The incorporation of Emaar Development PJSC (the "Company") as a Public Joint Stock Company 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 Company's registered office is at P.O. Box 9440, Dubai, United Arab Emirates ("UAE").

The Company is a subsidiary of Emaar Properties PJSC (the "Parent Company" or "Parent" or "Ultimate Parent"), a company incorporated in the UAE and listed on the Dubai Financial Market. The Company is also listed on the Dubai Financial Market. The Company 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 2024 and 2023.

The consolidated financial statements were authorised for issue on 14 February 2025.

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 Decree Law No. (32) of 2021.

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 Company's annual general assembly approved in its last meeting held on 21 April 2022 the amendments to its Articles of Association, in order to be fully compliant with the UAE Federal Decree Law No. (32) of 2021.

The consolidated financial statements have been prepared in United Arab Emirates Dirhams (AED), which is the Company'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 form 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 Company and the entities controlled by the Company as at 31 December 2024. 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 Company'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; and
• The Group's voting rights and a potential voting rights

2.1 BASIS OF PREPARATION (continued)

Basis of consolidation (continued)

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 off 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 Company, 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.

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.

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

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

• Derecognises the assets (including goodwill) and liabilities of the subsidiary;
• Derecognises the carrying amount of any non-controlling interest;
• Derecognises the cumulative translation differences, recorded in equity;
• 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
• 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.

Details of the Company's subsidiaries are as follows:

Subsidiaries	Place of incorporation	Principal activities	Percentage of effective holding
Dubai Hills Estate LLC	UAE	Property development	50%
Emaar Mina Rashid	UAE	Buying, selling and development of	100%
Development Owned By Emaar		real estate and leasing and
Development L.L.C		management of self-owned property
Mina Rashid Properties L.L.C	UAE	Buying, selling and development of	70%
		real estate	(Refer note 25)
Emaar Gardens L.L.C	UAE	Real Estate Development,	100%
		Investment in Commercial
		Enterprises & Management

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

2.1 BASIS OF PREPARATION (continued)

Basis of consolidation (continued)

Joint ventures

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 50% or more.

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

2.2 KEY ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

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 accompanying 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.

Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are 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 customers, 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. The title will be transferred to the customer only upon 100% collection, resulting in a low risk of default and loss thereof.

2.2 KEY ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Estimations and assumptions

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.

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's best estimate of use of corporate resources by the Group.

Recognition of forfeiture income from sales cancellation

Upon termination or cancellation of contracts with customers, amounts received from customers become refundable subject to forfeiture clauses contained in the original sale contract documents and as per local real estate regulations. Forfeited amounts are carried as liability on the consolidated statement of financial position upon cancellation/ termination of the contract. Amounts forfeited on cancelled/terminated property units (net of customer refunds, where applicable) are subsequently recognised in the consolidated statement of comprehensive income based on management's judgment on whether the Group expects any future association with the erstwhile customer whose amount are being forfeited.

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 and Project cost accruals

The Group estimates the cost to complete of the projects and project cost accruals in order to determine the cost attributable to revenue being recognised. These estimates include the value attributable to work done till date, 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.

During the current year, management has reassessed the adequacy of project accruals of certain projects and accordingly has written back AED 147,722 thousand (31 December 2023: AED 1,727,365 thousand) for projects which are fully completed and wherein final settlement is either obtained or management estimates no further contractor claims. Additionally, during the period 31 December 2023, due to revisions in the master plan of a project, management has written back accruals related to infrastructure costs amounting to AED 837,779 thousand. Also refer notes 4, 13 and 17

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.

2.2 KEY ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Estimations and assumptions (continued)

Impairment of non-financial assets (continued)

NRV was determined based on valuations performed by professionally qualified external valuers. The valuation was performed in accordance with the RICS valuation standards, adopting the IFRS basis of fair value and using established valuation techniques. The value of the development properties has been determined using market comparable and residual cost method. Key observable inputs include market prices of similar transactions, margins derived and discount rates, any movement in the assumptions would result in the lower / higher fair value of these assets.

The external valuer report on the valuation of the Group's development properties has drawn attention to the fact that a combination of global inflationary pressures, higher interest rates and recent geopolitical events have heightened the potential for greater volatility in property markets over the short-to-medium term, requiring management to closely monitor the valuation and track how market participants respond to current market volatility.

Management has critically assessed asset valuations and, in the current environment, are satisfied with the assumptions adopted and valuations reported. Management will continue to closely monitor the impact of this evolving situation to assess its impact to the Group, if any.

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.

2.3 CHANGES IN THE ACCOUNTING POLICIES AND DISCLOSURES

A number of new standards are effective for annual periods beginning after 1 January 2024 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 new or amended standards that are adopted in annual periods beginning on 1 January 2024:

a)	New standards, interpretations and amendments adopted by the Group	Effective date
	Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)	1 January 2024
	Non-current liabilities with covenants – Amendments to IAS 1 and
	Classification of Liabilities as Current and Non-current (Amendments to IAS 1)	1 January 2024
	Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7	1 January 2024

These standards / improvements have no material impact on the consolidated financial statements of the Group.

b) Standards, amendments and interpretations in issue but not effective

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

Forthcoming requirements	Effective date
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial	Upon adoption by applicable
Information and IFRS S2 Climate-related Disclosures	regulatory authority
Sale or Contribution of Assets between an Investor and its Associates or Joint Venture	Effective date deferred
(Amendments to IFRS 10 and IAS 28)	Indefinitely
Lack of Exchangeability – Amendments to IAS 21	1 January 2025

2.3 CHANGES IN THE ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED) Standards, amendments and interpretations in issue but not effective (continued)

Presentation and Disclosure in Financial Statements issued (IFRS 18)**	1 January 2027
Classification and measurement of Financial instruments – Amendments to IFRS 9 and IFRS 7	1 January 2026
Annual improvements to IFRS Accounting standards	1 January 2026
IFRS 19 Subsidiaries without Public accountability: Disclosures	1 January 2027

**IFRS 18 Presentation and Disclosure in Financial Statements - The IASB issued IFRS 18 Presentation and Disclosure in Financial Statements in April 2024. IFRS 18 aims to improve how companies communicate in their financial statements, with a focus on information about financial performance in the statement of profit or loss. IFRS 18 is accompanied by limited amendments to the requirements in IAS 7 Statement of Cash Flows. IFRS 18 is effective from 1 January 2027. IFRS 18 replaces IAS 1 Presentation of Financial Statements and will affect the presentation and disclosure of financial performance in the Group's consolidated financial statements when adopted.

Other than IFRS 18, 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.

2.4 SUMMARY OF MATERIAL 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.
• 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
• 1. The Group's performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or
• 1. 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.

2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)

Revenue recognition (continued)

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. 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 Statement of comprehensive income in the year in which they are incurred.

Income tax

Taxation is provided in accordance with the relevant fiscal regulations of the jurisdiction in which the Group operates. Current tax is the expected tax on the taxable income for the year, using tax rates enacted or substantially enacted as at the reporting date, and any adjustments to the tax receivable/payable in respect of prior years. Income tax relating to items recognised directly in other comprehensive income or equity is recognised directly in other comprehensive income or equity and not in the consolidated statement of comprehensive income.

Deferred income tax is provided, using the liability method, on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at the reporting date.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on laws that have been enacted as at the reporting date.

Deferred income tax assets are recognised for all deductible temporary differences and carry-forward of unused tax assets and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilised, except:

• when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
• in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)

Income tax (continued)

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax assets to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or liability is settled, based on tax rates that have been enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

UAE Federal Decree-Law No (47) of 2022 on the Taxation of Corporations and Businesses:

On 9 December 2022, the UAE Ministry of Finance released the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses ('the CT Law') to enact a Federal corporate tax ('CT') regime in the UAE. The CT Law is effective for financial years beginning on or after 1 June 2023. Decision No. 116 of 2022 specifies the threshold of income (as AED 375,000) over which a corporate tax of 9% would apply. For the Group, current taxes is accounted for as appropriate in the financial statements for the period beginning 1 January 2024. In accordance with IAS 12 Income Taxes, the related deferred tax accounting impact for the UAE component has been considered for the consolidated financial statement for the year ended 31 December 2024.

The Group has assessed the deferred tax implications for the year ended 31 December 2024 and, after considering its interpretations of applicable tax law, official pronouncements, cabinet decisions and ministerial decisions (especially with regard to transition rules), it has been concluded that deferred tax implications are not expected to be material.

The Group shall continue to monitor critical Cabinet Decisions to determine the impact on the Group, from deferred tax perspective.

Global Minimum Top-up Tax

The Organisation for Economic Co-operation and Development (OECD) has issued the Global Anti-Base Erosion (GloBE) Model Rules, which mandate a minimum tax rate of 15% per jurisdiction (Pillar Two). Various countries have either enacted or are in the process of enacting tax legislation to fully or partially comply with Pillar Two. The United Arab Emirates, where the Group's Ultimate Parent Entity is situated, has substantively enacted the Cabinet Decision No. 142 of 2024 on the Imposition of Top-up Tax on Multinational Enterprises. The Group falls within the scope of these rules from 1 January 2025 and is currently assessing its exposure to these rules.

There is uncertainty regarding whether the Pillar Two model rules create additional temporary differences, whether deferred taxes should be remeasured for the Pillar Two model rules, and which tax rate should be used to measure deferred taxes. In response to this uncertainty, the IASB and AASB issued amendments to IAS 12 'Income Taxes' on 23 May 2023 and 27 June 2023, respectively. These amendments introduce a mandatory temporary exception to the requirements of IAS 12, under which a company does not recognize or disclose information about deferred tax assets and liabilities related to the OECD/G20 BEPS Pillar Two model rules. The Group applied this temporary exception as of 31 December 2024.

2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)

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:

Sales centres (included in land and building)	1 - 10 years
Computers and office equipment	2 - 5 years
Motor vehicles	3 - 5 years
Furniture and fixtures	2 - 5 years

No depreciation is charged on land and capital work-in-progress. 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 rights for land;
• Amounts paid to contractors and project cost accrual for construction; and
• Borrowing cost, 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.

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.

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

2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)

Investment in joint ventures

The consolidated statement of comprehensive income 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 statement of comprehensive income.

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 statement of comprehensive income. When the remaining investment in joint venture constitutes significant influence, it is accounted for as an investment in associate.

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 nonderivative puttable instruments presented as equity by the issuer. All other non-derivative financial assets are 'debt instruments'.

Cash and cash equivalents

For the purpose of the consolidated 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.

2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)

Financial assets (continued)

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 statement of comprehensive income.

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

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 'pass-through' 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 forward-looking factors specific to the debtors and the economic environment. The expected credit losses are recognised in the consolidated statement of comprehensive income.

The Group considers 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.

2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)

Financial assets (continued)

Impairment of financial assets (continued)

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 'credit-impaired' 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;
• –– 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 cash-generating 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 comprehensive statement of income 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 statement of comprehensive income.

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.

2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)

Financial liabilities and equity instruments issued by the Group (continued)

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 statement of comprehensive income when the liabilities are derecognised as well as through the amortisation process.

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 non-cash assets transferred or liabilities assumed) is recognised in consolidated statement of comprehensive income.

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 statement of comprehensive income 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.

2.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)

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.

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.

Fair value of interest rate swap contract is determined by reference to market value for similar instruments.

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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

4 REVENUE AND COST OF REVENUE

	2024 AED'000	2023 AED'000
Revenue
Sale of residential units	17,546,770	10,863,411
Sale of commercial units, plots of land and income from development services (note 26)	1,599,843 ────────	1,057,967 ────────
	19,146,613 ════════	11,921,378 ════════
Cost of revenue (note 2.2)
Cost of residential units	8,388,408	3,454,046
Cost of commercial units and plots of land	101,621 ────────	59,082
	8,490,029	──────── 3,513,128
	════════	════════

Trade and unbilled receivables are included in note 11.

Below is the split of revenue recognised over a period of time and single point in time:

	2024 AED'000	2023 AED'000
- Over a period of time - Single point in time	18,856,243 290,370	11,862,213 59,165
	──────── 19,146,613	──────── 11,921,378

════════ ════════

5 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

	2024 AED'000	2023 AED'000
Sales and marketing expenses	553,396	406,421
Payroll and related expenses	177,282	158,561
Property management expenses	111,972	125,440
Depreciation (note 16)	8,459	12,515
Other expenses (note 26)	758,017	480,561
	──────── 1,609,126	──────── 1,183,498
	════════	════════

During the year ended 31 December 2024, no social contribution has been made by the Group (31 December 2023: Nil).

6 FINANCE INCOME

	2024 AED'000	2023 AED'000
Finance income on fixed deposits, current and call deposits with banks Other finance income (i)	991,040 168,486	677,218 165,584
	──────── 1,159,526 ════════	──────── 842,802 ════════

(i) This relates to finance income on unwinding of long-term receivable.

7 FINANCE COSTS

	2024 AED'000	2023 AED'000
Finance costs – bank and related party borrowings (note 26) Other finance costs (i)	243,954 157,835	120,013 213,159
	──────── 401,789 ════════	──────── 333,172 ════════

(i) During the year, the Group has recorded finance cost on unwinding of long-term payables amounting to AED 72,157 thousand (31 December 2023: AED 106,463 thousand).

8 OTHER INCOME

	2024 AED'000	2023 AED'000
Forfeiture income from sales cancellations (note 18) Other income *	9,171 164,494	343,318 282,767
	──────── 173,665 ════════	──────── 626,085 ════════

*Primarily comprises administrative fees charged to customers and other miscellaneous income.

9 INCOME TAX

	2024	2023
	AED'000	AED'000
Consolidated statement of comprehensive income Current income tax expenses	486,367	-
	══════	══════
	2024	2023
	AED'000	AED'000
Consolidated statement of financial position
Income tax payable balance at the beginning of the year	-	-
Charge for the year, net	486,367	-
Income tax payable balance at the end of the year	────── 486,367	────── -
	══════	══════

Income tax expense relates to the tax payable on the results of the Group, as adjusted in accordance with the taxation laws and regulations of UAE. The relationship between the tax expenses and the accounting profit can be explained as follows:

	2024 AED'000	2023 AED'000
Profit before tax Profit not subject to tax	10,173,028 -	8,484,076 (8,484,076)
Accounting profit subject to income tax Adjustments in determining taxable profit;	──────── 10,173,028	──────── -
Exempt income (Share of results of joint ventures) Non-deductible expenses Benefit from transition exemption specified in Ministerial Decision No.120	(194,167) 35,255 (4,608,911)	- - -
Taxable profit	──────── 5,405,205	──────── -
Net income tax charged for the year	════════ 486,367	════════ -
Effective tax rate	════════ 4.8% ════════	════════ - ════════

9 INCOME TAX (continued)

The Group has recognised income tax expense based on the estimate made by the management. The Group is subject to income tax with effect from 1 January 2024. The Group ETR is lower primarily due to the relief available by application of Ministerial Decision 120 of 2023 ('MD 120') under Transitional rules for Federal Decree Law No. 47 of 2022 on taxation of Corporation and Businesses on immovable properties. To ensure compliance and obtain further clarity on the appropriate method for calculating the impact of MD 120, a formal clarification request has been submitted to the Federal Tax Authority (FTA). Pending formal clarification, management has recognized the tax relief based on the most likely and probable amount, aligning with the principles of IFRIC 23 'Uncertainty Over Income Tax Treatments'. Any changes arising from the FTA's clarification will be reflected in subsequent reporting periods.

10 BANK AND CASH BALANCES

	2024 AED'000	2023 AED'000
Cash in hand	1,346	1,317
Current and call bank deposit accounts	23,568,275	15,580,883
Fixed deposits maturing within three months	-	2,839,470
	──────── 23,569,621	──────── 18,421,670
	════════	════════

As at 31 December 2024, cash and cash equivalents amount to AED 23,569,621 thousands (2023: AED 18,421,670 thousands).

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 2024, balance amounting to AED 22,885,896 thousands (2023: AED 15,147,563 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.

11 TRADE AND UNBILLED RECEIVABLES

	2024 AED'000	2023 AED'000
Trade receivables Amounts receivables within 12 months, net	541,593	564,780
Unbilled receivables Unbilled receivables within 12 months Unbilled receivables after 12 months, net	──────── 7,537,731 3,378,049	──────── 4,983,934 6,471,659
	──────── 10,915,780	──────── 11,455,593
Total trade and unbilled receivables	──────── 11,457,373 ════════	──────── 12,020,373 ════════

The above trade and unbilled receivables are net of AED 20,977 thousand (2023: AED 20,977 thousand) 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.

Movement in the provision for doubtful debts during the year is as follows:

	2024 AED'000	2023 AED'000
Balance at the beginning of the year Written off during the year	20,977 -	20,977 -
Balance at the end of the year	─────── 20,977 ═══════	─────── 20,977 ═══════

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

11 TRADE AND UNBILLED RECEIVABLES (continued)

At 31 December, the ageing analysis of net trade and unbilled receivables is as follows:

Neither			Past due ────────────────────────────────────────
	Total AED'000	past due nor impaired AED'000	Less than 30 days AED'000	Between 31 to 60 days AED'000	Between 61 to 90 days AED'000	More than 90 days AED'000
2024	11,457,373	10,915,780	230,038	29,174	29,041	253,340
2023	════════ 12,020,373 ════════	════════ 11,455,593 ════════	═══════ 202,938 ═══════	═══════ 109,672 ═══════	═══════ 40,227 ═══════	═══════ 211,943 ═══════

Trade and unbilled receivables aged more than 90 days includes a provision of impairment loss of AED 20,977 thousand (2023: AED 20,977 thousand)

Refer note 29(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.

12 OTHER ASSETS, RECEIVABLES, DEPOSITS AND PREPAYMENTS

	2024	2023
	AED'000	AED'000
Due from related parties (note 26)	2,361,972	2,350,092
Deferred sales commission (i)	1,940,493	1,188,618
Advances to contractors and others (ii)	1,401,327	725,538
Value added tax recoverable (net)	304,694	146,412
Prepayments	4,543	3,861
Other receivables and deposits	78,803	65,389
	─────── 6,091,832	─────── 4,479,910
	═══════	═══════

Other assets, receivables, deposits and prepayments are realisable within 12 months from the reporting date.

• (i) The deferred sales commission expense incurred to obtain a contract with the customers is amortised over the period of satisfying performance obligations, where applicable.
• (ii) Advance paid to contractors at the commencement are adjusted against progress billings issued by the contractors throughout the project construction period.

13 DEVELOPMENT PROPERTIES

	2024 AED'000	2023 AED'000
Balance at the beginning of the year	12,466,983	10,850,819
Add: Costs incurred during the year*	12,543,289	7,694,436
Less: Costs transferred to cost of revenue during the year (refer note 2.2)	(8,490,029)	(6,078,272)
Balance at the end of the year	──────── 16,520,243	──────── 12,466,983
	════════	════════

* Includes cost of acquisition of land.

During the year 31 December 2024, an amount of AED 4,482 thousand (31 December 2023: AED 6,210 thousand) was capitalised as cost of borrowings for the construction of development properties.

14 LOANS TO JOINT VENTURES

	2024 AED'000	2023 AED'000
Emaar Dubai South DWC LLC*	671,331	692,758
Zabeel Square LLC*	131,775	7,000
Old Town Views LLC	1,168	850
	──────── 804,274	──────── 700,608
	════════	════════

Loans to joint ventures are unsecured and are repayable as per the terms of the agreement and do not carry any interest.

*This includes AED 675,137 thousands (2023: AED 631,700 thousand) which is expected to be recovered after 12 months from the reporting date.

15 INVESTMENTS IN JOINT VENTURES

	2024 AED'000	2023 AED'000
Emaar Dubai South DWC LLC (i)	677,811	502,657
Zabeel Square LLC (ii)	272,901	234,538
Old Town Views LLC (iii)	13,357	24,510
Net investment in joint ventures as at year end	─────── 964,069	─────── 761,705
	═══════	═══════

• (i) During 2015, the Parent Company 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. As agreed in the Master Transfer Agreement (MTA), the Parent Company has transferred it's share in the joint venture relating to the BTS development (including all the rights and obligation) to the Group.
• (ii) On 9 January 2017, the Parent Company entered into a joint venture agreement with Meraas Zabeel Owned by Meraas Venture One Person Company LLC for the purpose of mix-use development in the UAE. The Parent has 50% equity interest in the joint venture company, Zabeel Square LLC ("Zabeel Square"). As agreed in the Master Transfer Agreement (MTA), the Parent Company has transferred it's share in the joint venture relating to the BTS development (including all the rights and obligation) to the Group.
• (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 company, Old Town Views LLC ("Old Town").

The Group has the following effective ownership interest in its joint ventures:

	Country of	Ownership
	incorporation	2024	2023
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 tables summarises the statement of comprehensive income of the Group's joint ventures for the year ended 31 December 2024 and 31 December 2023, which represent amount shown in the joint ventures financials statements:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

15 INVESTMENTS IN JOINT VENTURES (continued)

	Emaar Dubai South DWC LLC AED'000	Zabeel Square LLC AED'000	Old Town Views LLC AED'000	Total AED'000
Revenue	769,932	-	1,987	771,919
Total comprehensive income for the year	──────	──────	──────	───────
	350,308	34,473	2,899	387,679
Profit attributable to owners of the entities	══════	══════	══════	══════
	350,308	34,473	2,899	387,679
	══════	══════	══════	══════
Group's share of profit for the year	175,154	17,237	1,776	194,167
	══════	══════	══════	══════
	Emaar Dubai South DWC LLC AED'000	Zabeel Square LLC AED'000	Old Town Views LLC AED'000	Total AED'000
Revenue	793,992	-	24,993	818,985
Total comprehensive income for the year	──────	──────	──────	───────
	192,710	-	44,496	237,206
Profit attributable to owners of the entities	══════	══════	══════	══════
	192,710	-	44,496	237,206
	══════	══════	══════	══════
Group's share of profit for the year	96,355	-	27,254	123,609
	══════	══════	══════	══════

During the period, the Group has recognised AED 194,167 thousands (31 December 2023: 123,609) towards its share of profit from joint ventures and AED 12,929 thousand (31 December 2023: AED 287,524) towards dividend received from joint ventures.

The following tables summarises the statements of financial position of the Group's joint ventures as at 31 December 2024 and 31 December 2023, which represent amount shown in the joint ventures financials statements:

	Emaar Dubai South DWC LLC AED'000	Zabeel Square LLC AED'000	Old Town Views LLC AED'000	Total AED'000
Total assets (including cash and cash equivalents of AED 4,537,234 thousands)	4,729,034	2,554,590	53,165	7,336,789
Total liabilities	3,373,413	2,008,788	31,357	5,413,558
Net assets	1,355,622	545,802	21,808	1,923,232
Group's share of net assets	═══════ 677,811 ═══════	══════ 272,901 ══════	══════ 13,357 ══════	══════ 964,069 ══════
	Emaar Dubai South DWC LLC AED'000	Zabeel Square LLC AED'000	Old Town Views LLC AED'000	Total AED'000
Total assets (including cash and cash equivalents of AED 959,781 thousands)	2,335,737	874,162	101,745	3,311,644
Total liabilities	1,330,422	405,085	61,730	1,797,237
Net assets	1,005,315	469,077	40,015	1,514,407
Group's share of net assets	═══════ 502,657 ═══════	══════ 234,538 ══════	══════ 24,510 ══════	══════ 761,705 ══════

As at 31 December 2024, the Group's share of commitments in relation to its joint ventures amount to AED 2,104,868 thousand (2023: AED 1,215,355 thousand).

16 PROPERTY, PLANT AND EQUIPMENT

2024:	Land and building AED'000	Computers and office equipment AED'000	Furniture and fixtures AED'000	Motor vehicles AED'000	Right-of-use of assets AED'000	Total AED'000
Cost:
At 1 January 2024 Additions	58,357 598	17,746 512	28,957 3,394	485 3	21,252 1,094	126,797 5,601
At 31 December 2024	───── 58,955	──── 18,258	───── 32,351	─── 488	───── 22,346	───── 132,398
	─────	─────	─────	───	─────	─────
Accumulated depreciation: At 1 January 2024 Depreciation charge for the year (note 5)	46,200 5,836	17,252 168	25,546 1,362	23 -	21,252 1,094	110,274 8,459
At 31 December 2024	───── 52,036	──── 17,420	───── 26,908	─── 23	───── 22,346	───── 118,733
Net carrying amount: At 31 December 2024	───── 6,919 ═════	──── 838 ════	───── 5,443 ═════	─── 465 ═══	───── - ════	───── 13,665 ═════
2023:	Land and building AED'000	Computers and office equipment AED'000	Furniture and fixtures AED'000	Motor vehicles AED'000	Right-of-use of assets AED'000	Total AED'000
Cost:
At 1 January 2023 Additions	58,357 -	16,361 1,385	24,588 4,369	97 388	18,511 2,741	117,914 8,883
At 31 December 2023	───── 58,357	──── 17,746	───── 28,957	─── 485	───── 21,252	───── 126,797
Accumulated depreciation:	─────	─────	─────	───	─────	─────
At 1 January 2023 Depreciation charge for the year (note 5)	40,365 5,835	15,577 1,675	23,282 2,264	23 -	18,511 2,741	97,758 12,515
	─────	────	─────	───	─────	─────
At 31 December 2023	46,200 ─────	17,252 ────	25,546 ─────	23 ───	21,252 ─────	110,273 ─────
Net carrying amount: At 31 December 2023	12,157 ═════	494 ════	3,411 ═════	462 ═══	- ════	16,524 ═════

17 TRADE AND OTHER PAYABLES

	2024	2023
	AED'000	AED'000
Project contract cost accruals (note 2.2)	2,919,610	2,293,592
Payable to related parties (note 26)	1,489,890	3,973,164
Creditors for land purchase	1,065,242	1,254,830
Trade payables (i)	655,979	727,763
Payable to authorities	87,960	99,110
Sales commission payable	377,868	130,009
Other payables and accruals	305,325	268,551
	──────── 6,901,874	──────── 8,747,019

The accompanying notes 1 to 30 form an integral part of these consolidated financial statements.

════════ ════════

17 TRADE AND OTHER PAYABLES (continued)

(i) Trade and other payables other than payable to the parent company (refer note 26 (iii)) are non-interest bearing and for explanations on the Group's liquidity risk management process and maturity profile of financial liabilities, refer note 29(c).

18 ADVANCES FROM CUSTOMERS

	2024 AED'000	2023 AED'000
Balance at the beginning of the year	12,716,232	9,627,012
Add: Additions during the year	24,428,037	14,906,689
Less: Revenue recognised during the year	(17,924,626)	(11,474,151)
Less: Other Income recognised during the year (forfeiture income) (note 8)	(9,171)	(343,318)
Balance at the end of the year	──────── 19,210,472	─────── 12,716,232
	════════	═══════

The aggregate amount of the sale price allocated to the performance obligations of the Group that are unsatisfied / partially unsatisfied as at 31 December 2024 is AED 63,775,130 thousand (2023: AED 46,894,145 thousand). The Group expects to recognise these unsatisfied performance obligations as revenue over a period of 1-5 years.

19 RETENTIONS PAYABLE

	2024 AED'000	2023 AED'000
Retentions payable within 12 months Retentions payable after 12 months	651,738 524,686	472,394 433,407
	──────── 1,176,424	─────── 905,801
20 INTEREST-BEARING LOANS AND BORROWINGS	════════	═══════
	2024 AED'000	2023 AED'000
Balance at the beginning of the year Add: Borrowings drawn down during the year Less: Repaid during the year	3,673 - -	895,819 850,090 (1,742,236)
Net interest-bearing loans and borrowings at the end of the year	──────── 3,673	─────── 3,673
Interest-bearing loans and borrowings maturity profile: Within 12 months	════════ -	═══════ -
After 12 months	3,673	3,673
	──────── 3,673 ═══════	─────── 3,673 ═══════

During 2022, the Group had obtained two facilities aggregating to AED 3,673,000 thousand. The tenure of these new facilities is for a period of six years from the date of the agreements and carry profit rates of 1 or 3 month EIBOR plus a margin of 1%. These facilities are guaranteed by the Parent Company. The outstanding amount from these facilities as at 31 December 2024 is AED 3,673 thousand (2023: AED 3,673 thousand).

During 2022, the Group also executed short term facility of AED 600,000 thousand. This facility carries interest of EIBOR plus 1% per annum and is secured by a corporate guarantee from the Parent Company. As at 31 December 2024 and as at 31 December 2023, the Group has neither drawn down nor availed any amount from the facility.

21 SHARE CAPITAL

	2024	2023
	AED'000	AED'000
Authorised capital: 8,000,000,000 shares of AED 1 each
(2023: 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
(2023: 4,000,000,000 shares of AED 1 each)	4,000,000	4,000,000
	══════	══════

22 RESERVES

(i) According to Article 61 of the Articles of Association of the Company and Article 241 of the UAE Federal Decree Law No. (32) of 2021, 10% of the annual net profit shall be allocated to legal reserve until it reaches 50% of the paidup share capital. The Legal Reserve as at 31 December 2024 is AED 2,000,000 thousands (2023: AED 2,000,000 thousands)

(ii) The General Reserve as at 31 December 2024 is AED 150 thousands (2023: AED 150 thousands)

23 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 Company 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 Company 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:

	2024	2023
	AED'000	AED'000
Earnings:
Profit attributable to the owners of the Company	7,633,219 ═══════	6,628,996 ═══════
Number of shares in thousands
Weighted-average number of ordinary shares for basic earnings per share	4,000,000 ═══════	4,000,000 ═══════
Earnings per share:
- basic and diluted earnings per share (AED)	1.91	1.66
	═══════	═══════

24 GUARANTEES AND CONTINGENCIES

The Group has provided a performance guarantee of AED 4,841,207 thousand (2023: AED 4,246,307 thousand) to the Real Estate Regulatory Authority (RERA), Dubai for its projects as per RERA regulations.

25 COMMITMENTS

As at 31 December 2024, the Group has commitments of AED 13,374,020 thousands (2023: AED 9,858,958 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 Joint Development Agreement entered by the Group relating to Mina Rashid Properties LLC, the Group has a commitment to pay 30% of future profits over the project life cycle of Mina Rashid Properties LLC to the non-controlling shareholder.

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.

26 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, joint ventures and others.

The Group's parent company 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 (power, utilities, land purchases, contracting and infrastructure service) 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:

	2024	2023
	AED'000	AED'000
Parent:
Revenue (refer (ii) below)	24,734	761,228
Selling, general and administrative expenses (refer (i) below)	597,556	379,750
Finance cost (refer (iii) below)	228,706	109,338
Borrowing (refer (iii) below)	8,446,000	5,256,000
Repayment of borrowing (refer (iii) below)	(10,356,000)	(5,930,750)
	════════	══════
Affiliated entities:
Revenue (refer (ii) below)	1,168,753	130,326
Selling, general and administrative expenses	70,304	81,337
Property development expenses	248,329	194,803
	══════	══════
Joint Ventures:
Revenue	17,695	15,793
	══════	══════
Directors, Key management personnel and their related parties:
Selling, general and administrative expenses	782	422
	══════	══════

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

2024 2023

	AED'000	AED'000
Parent:
Other assets, receivables, deposits and prepayments (refer (ii) below)	51,749	133,887
Trade and other payables (refer (i) and (iii) below)	1,455,085	3,918,730
	═══════	═══════
Affiliated entities:
Other assets, receivables, deposits and prepayments Trade and other payables	2,310,223 34,805 ═══════	2,216,205 54,434 ═══════

26 RELATED PARTY DISCLOSURES (continued)

(i) Allocation of corporate expenses:

The Parent Company has provided certain corporate services to the Group and costs associated with these services were allocated to the Group. These services 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. This net balance is recoverable on demand.

(ii) Recoverable from the Parent:

This mainly represents balances recoverable from the Parent Company with respect to the development costs incurred for the Build-to-sell (BTS) developments in Dubai Creek Harbour project (DCH project). As agreed in the Master Transfer Agreement (MTA), the Parent Company has transferred the development services and profit relating to the BTS development in DCH project to the Company, for which the development costs including infrastructure costs are incurred by the Company prior to acquisition.

Subsequent to the Parent Company's acquisition of 100% shareholding in Dubai Creek Harbour LLC in 2022, the aforesaid arrangement was amended during the year 2023 wherein the transactions for development services and entitlement of profits are now directly between the Company and Dubai Creek Harbour LLC, a wholly owned subsidiary of the Parent Company and a related party of the Company.

(iii) Payable to the Parent Company:

Amount due to the Parent Company is unsecured and is repayable on demand. The Group has total credit facility of AED 7,000,000 thousand (31 December 2023: AED 4,958,550 thousand) and this carries interest rate at 3 months EIBOR plus 1% per annum. The entire amount was repaid during the current year (31 December 2023: AED 1,910,000). Also refer note 17.

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

	2024 AED'000	2023 AED'000
Short-term benefits Employees' end-of-service benefits	14,720 522	14,372 811
	───── 15,242 ═════	───── 15,183 ═════

During the year, the number of key management personnel is 9 (2023:9).

Similar to year ended 31 December 2023, the Company has reassessed key roles as key management personnel's (KMPs).

During the year, the Company has paid a bonus of AED 3,900 thousand to the non-executive members of the Board of Directors for the year 2023 as approved by the shareholders at the Annual General Meeting of the Company held on 23 April 2024 (2023: AED 3,900 thousand).

27 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 shortterm maturities of these instruments.

28 DIVIDEND

A cash dividend of AED 2,720,000 thousand (AED 0.68 per share) for the year ended 31 December 2024 is proposed by the Board of Directors of the Company subject to the approval of shareholders in the forthcoming Annual General Meeting.

The Company has paid cash dividend of AED 2,082,000 thousand (AED 0.52025 per share) for the year ended 31 December 2023 as approved by the shareholders of the Company at the Annual General Meeting held on 23 April 2024.

29 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.

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 ad hoc 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:

29 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

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.

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 38,270,885 thousands (2023: AED 33,549,994 thousands).

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 24 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.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

29 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

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.

Interest on financial instruments having floating rates is re-priced at intervals of less than one year. 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):

		2024	2023
	Change in basis points	────────────────────── Sensitivity of interest income/ expense AED'000	────────────────────── Change in basis points	Sensitivity of interest income/ expense AED'000
Interest on current and call deposits Interest-bearing loans and borrowings Trade and other payables	+ 100 + 100 + 100	235,683 36 -	+ 100 + 100 + 100	155,809 36 19,100

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.

The cash flows, funding requirements and liquidity of Group companies are monitored on a centralised basis, under the 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:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

29 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

c) Liquidity risk (continued)

As at 31 December 2024
Financial liabilities	Less than 1 year AED'000	1 to 5 years AED'000	Over 5 years AED'000	Total AED'000
Interest-bearing loans and borrowings	217	3,673	-	3,890
Retentions payable	651,737	524,687	-	1,176,424
Trade and other payables	4,690,937	1,343,544	976,110	7,010,591
Total undiscounted financial liabilities	──────── 5,342,891 ════════	─────── 1,871,904 ═══════	───── 976,110 ══════	──────── 8,190,905 ════════

Less than 1 year AED'000	1 to 5 years AED'000	Over 5 years AED'000	Total AED'000
			4,095
			905,801
6,499,749	2,134,096	280,773	8,914,618
6,972,353 ════════	2,571,388 ═══════	280,773 ══════	──────── 9,824,514 ════════
	211 472,393 ────────	3,884 433,408 ───────	- - ─────

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 2024 and 31 December 2023.

Neither the Company nor any of its subsidiaries is subject to externally imposed capital requirements other than the statutory requirements in the jurisdictions where the Company or Group entities are incorporated.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

30 NON-CONTROLLING INTEREST (NCI)

Financial information of major subsidiary of the Group that have material non-controlling interest (NCI) are provided below:

	Country of	NCI holding	NCI holding
	incorporation	2024	2023
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. This information is based on the amounts before inter-company elimination.

	Dubai Hills Estate LLC
	──────────────────── 2024 AED'000	2023 AED'000
Total assets	12,415,194	11,096,706
Total liabilities	6,203,089	3,899,029
Total equity	6,212,105	7,197,677
Attributable to:	────────	────────
Owners of the Company	3,106,053	3,598,839
Non-controlling interest	3,106,053	3,598,839
Other non-material Non-Controlling Interest (note 25)	──────── 120,669	──────── 30,642
Total	3,226,722	3,629,481
	════════	════════

The following table summarises the income statement of this subsidiary as at 31 December. This information is based on the amounts before inter-company elimination.

	Dubai Hills Estate LLC
	2024 AED'000	──────────────────── 2023 AED'000
Revenue	6,407,984	3,587,412
Profit for the year (refer note 2.2)	3,926,828	3,648,876
Total comprehensive income for the year	3,926,828	3,648,876
Attributable to:	───────	───────
Owners of the Company	1,963,414	1,824,438
Non-controlling interest	1,963,414 ───────	1,824,438 ───────
Other non-material Non-Controlling Interest (note 25)	90,027	30,642
Total	2,053,441	1,855,080

AED 2,456,200 thousand dividend paid to non-controlling interest in the current year (31 December 2023: Nil).

════════ ════════

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) For the year ended 31 December 2024

30 NON-CONTROLLING INTEREST (NCI) (continued)

The following table summarises the cash flow statement of this subsidiary as at 31 December. This information is based on the amounts before inter-company elimination.

	Dubai Hills Estate LLC
	──────────────────── 2024 AED'000	2023 AED'000
Cash from operating activities Cash from investing activities	4,380,581 485,193	3,488,934 290,357
Cash used in financing activities	(4,926,431)	(7,423)
Net (decrease)/ increase in cash and cash equivalents	─────── (60,657) ───────	─────── 3,771,868 ───────