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EMAAR DEVELOPMENT PJSC Interim / Quarterly Report 2026
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Interim / Quarterly Report
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Emaar Development PJSC and its Subsidiaries
UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2026
Emaar Development PJSC and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the period ended 31 March 2026
Table of Contents
| Pages | |
|---|---|
| Report on Review of Interim Condensed Consolidated Financial Statements | 1 |
| Interim Condensed Consolidated Statement of Comprehensive Income | 2 |
| Interim Condensed Consolidated Statement of Financial Position | 3 |
| Interim Condensed Consolidated Statement of Changes in Equity | 4 |
| Interim Condensed Consolidated Statement of Cash Flows | 5 |
| Notes to the Interim Condensed Consolidated Financial Statements | 6 – 15 |
EY
Shape the future with confidence
ERNST & YOUNG MIDDLE EAST (DUBAI BRANCH)
P.O. Box 9267
ICD Brookfield Place, Ground Floor
Al-Mustaqbal Street
Dubai International Financial Centre
Emirate of Dubai, United Arab Emirates
Tel: +971 4 701 0100
+971 4 332 4000
Fax: +971 4 332 4004
https://www.ey.com
P.L. No. 108937
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF EMAAR DEVELOPMENT PJSC
Introduction
We have reviewed the accompanying interim condensed consolidated financial statements of Emaar Development PJSC (the "Company") and its subsidiaries (collectively referred to as the "Group") which comprise the interim condensed consolidated statement of financial position as at 31 March 2026, and the related interim condensed consolidated statements of comprehensive income, changes in equity and cash flows for the three-month period then ended, and other explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Other matter
The interim condensed consolidated financial statements of the Group for the three-month period ended 31 March 2025 were reviewed by another auditor who expressed an unmodified conclusion on those interim condensed consolidated financial statements on 14 May 2025.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.
Ernst & Young Middle East (Dubai Branch)
Ali Hasan
Registration No: 5864
8 May 2026
Dubai, United Arab Emirates
A branch of a member firm of Ernst & Young Global Limited
Emaar Development PJSC and its Subsidiaries
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 March 2026 (Unaudited)
| | | (US$ 1.00 = AED 3.673)
For the three-month period ended | |
| --- | --- | --- | --- |
| | Notes | 31 March 2026
AED'000 | 31 March 2025
AED'000 |
| Revenue | 4 | 6,856,257 | 5,024,312 |
| Cost of revenue | 4 | (3,074,482) | (2,245,856) |
| GROSS PROFIT | | 3,781,775 | 2,778,456 |
| Selling, general and administrative expenses | 5 | (545,822) | (379,722) |
| Finance income | 6 | 409,299 | 304,189 |
| Finance cost | 7 | (53,912) | (44,932) |
| Other income | | 31,612 | 37,457 |
| Share of results of joint ventures | 14 | 426,505 | 69,861 |
| PROFIT BEFORE TAX | | 4,049,457 | 2,765,309 |
| Income tax expense | 8 | (542,637) | (410,375) |
| NET PROFIT FOR THE PERIOD | | 3,506,820 | 2,354,934 |
| Other comprehensive income | | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | | 3,506,820 | 2,354,934 |
| ATTRIBUTABLE TO: | | | |
| Owners of the Company | | 2,922,590 | 1,918,227 |
| Non-controlling interests | | 584,230 | 436,707 |
| | | 3,506,820 | 2,354,934 |
| Earnings per share attributable to the owners of the Company:
-basic and diluted earnings per share (AED) | | 0.73 | 0.48 |
The accompanying notes 1 to 21 form an integral part of these interim condensed consolidated financial statements.
Emaar Development PJSC and its Subsidiaries
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2026 (Unaudited)
| Notes | (US$ 1.00 = AED 3.673) | ||
|---|---|---|---|
| 31 March 2026 AED'000 | 31 December 2025 AED'000 (Audited) | ||
| ASSETS | |||
| Bank and cash balances | 9 | 46,813,259 | 41,309,753 |
| Trade and unbilled receivables | 10 | 7,208,596 | 7,566,550 |
| Other assets, receivables, deposits and prepayments | 11 | 10,105,457 | 7,995,675 |
| Development properties | 12 | 22,008,639 | 21,485,928 |
| Loans to joint ventures | 13 | 843,909 | 841,178 |
| Investments in joint ventures | 14 | 2,095,505 | 1,669,926 |
| Property, plant and equipment | 15,480 | 13,385 | |
| Right-of-use assets | 12,584 | 11,883 | |
| TOTAL ASSETS | 89,103,429 | 80,894,278 | |
| LIABILITIES AND EQUITY | |||
| Liabilities | |||
| Trade and other payables | 15 | 14,620,527 | 10,148,876 |
| Advances from customers | 29,063,980 | 25,583,078 | |
| Income tax payable | 8 | 2,771,066 | 2,228,429 |
| Retentions payable | 1,821,033 | 1,616,260 | |
| Interest-bearing loans and borrowings | 16 | 3,673 | 3,673 |
| Provision for employees' end-of-service benefits | 31,528 | 29,160 | |
| TOTAL LIABILITIES | 48,311,807 | 39,609,476 | |
| EQUITY | |||
| Equity attributable to owners of the Company | |||
| Share capital | 4,000,000 | 4,000,000 | |
| Reserves | 2,293,215 | 2,293,215 | |
| Retained earnings | 29,903,297 | 30,980,707 | |
| 36,196,512 | 37,273,922 | ||
| Non-controlling interests | 4,595,110 | 4,010,880 | |
| TOTAL EQUITY | 40,791,622 | 41,284,802 | |
| TOTAL LIABILITIES AND EQUITY | 89,103,429 | 80,894,278 |
To the best of our knowledge, the interim condensed consolidated financial statements present fairly, in all material respects, the interim condensed consolidated financial position, results of operations and interim condensed consolidated cash flows of the Group as of, and for the period ended 31 March 2026.
The accompanying notes 1 to 21 form an integral part of these interim condensed consolidated financial statements.
A a.0
Emaar Development PJSC and its Subsidiaries
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 March 2026 (Unaudited)
| Attributable to the owners of the Company | (US$ 1.00 = AED 3.673) | |||||
|---|---|---|---|---|---|---|
| Share capital AED'000 | Reserves AED'000 | Retained earnings AED'000 | Total AED'000 | Non-controlling interests AED'000 | Total equity AED'000 | |
| Balance at 1 January 2026 (Audited) | 4,000,000 | 2,293,215 | 30,980,707 | 37,273,922 | 4,010,880 | 41,284,802 |
| Net profit for the period | - | - | 2,922,590 | 2,922,590 | 584,230 | 3,506,820 |
| Total comprehensive income for the period | - | - | 2,922,590 | 2,922,590 | 584,230 | 3,506,820 |
| Dividend declared to shareholders (note 21) | - | - | (4,000,000) | (4,000,000) | - | (4,000,000) |
| Balance as at 31 March 2026 (Unaudited) | 4,000,000 | 2,293,215 | 29,903,297 | 36,196,512 | 4,595,110 | 40,791,622 |
| Attributable to the owners of the Company | ||||||
| Share capital AED'000 | Reserves AED'000 | Retained earnings AED'000 | Total AED'000 | Non-controlling interests AED'000 | Total equity AED'000 | |
| Balance at 1 January 2025 (Audited) | 4,000,000 | 2,000,150 | 22,388,418 | 28,388,568 | 3,226,722 | 31,615,290 |
| Net profit for the period | - | - | 1,918,227 | 1,918,227 | 436,707 | 2,354,934 |
| Total comprehensive income for the period | - | - | 1,918,227 | 1,918,227 | 436,707 | 2,354,934 |
| Director's bonus | - | - | (3,900) | (3,900) | - | (3,900) |
| Dividend declared to shareholders (note 21) | - | - | (2,720,000) | (2,720,000) | - | (2,720,000) |
| Balance as at 31 March 2025 (Unaudited) | 4,000,000 | 2,000,150 | 21,582,745 | 27,582,895 | 3,663,429 | 31,246,324 |
The accompanying notes 1 to 21 form an integral part of these interim condensed consolidated financial statements.
Emaar Development PJSC and its Subsidiaries
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 March 2026 (Unaudited)
| | | (US$ 1.00 = AED 3.673)
For the three-month period ended | |
| --- | --- | --- | --- |
| | | 31 March
2026 | 31 March
2025 |
| | Notes | AED'000 | AED'000 |
| CASH FLOWS FROM OPERATING ACTIVITIES | | | |
| Profit before tax | | 4,049,457 | 2,765,309 |
| Adjustments for: | | | |
| Share of results of joint ventures | 14 | (426,505) | (69,861) |
| Depreciation (including right-of use assets) | 5 | 2,581 | 2,023 |
| Finance income | 6 | (409,299) | (304,189) |
| Finance cost | 7 | 53,912 | 44,932 |
| Provision for employees' end-of-service benefits, net | | 2,368 | (1,512) |
| Cash from operations before working capital changes | | 3,272,514 | 2,436,702 |
| Working capital changes: | | | |
| Trade and unbilled receivables | | 407,563 | 1,240,553 |
| Other assets, receivables, deposits and prepayments | | (2,102,992) | (104,314) |
| Development properties | | (522,711) | 208,065 |
| Advances from customers | | 3,467,995 | 2,217,040 |
| Trade and other payables | | 414,935 | (47,409) |
| Retentions payable | | 204,773 | 92,828 |
| Net cash flows generated from operating activities | | 5,142,077 | 6,043,465 |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | |
| Finance income received | | 352,900 | 256,310 |
| Loans given to joint ventures | | 39,642 | - |
| Dividend received from joint venture | 14 | 926 | - |
| Purchase of property, plant and equipment | | (3,461) | (351) |
| Fixed deposits with original maturities of more than three months | | (515,670) | - |
| Net cash flows (used in)/generated from investing activities | | (125,663) | 255,959 |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
| Finance costs paid | | (24,678) | (19,717) |
| Directors' bonus paid | | (3,900) | (3,900) |
| Net cash flows used in financing activities | | (28,578) | (23,617) |
| INCREASE IN CASH AND CASH EQUIVALENTS | | 4,987,836 | 6,275,807 |
| Cash and cash equivalents at the beginning of the period | | 39,804,390 | 23,569,621 |
| CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD | 9 | 44,792,226 | 29,845,428 |
The accompanying notes 1 to 21 form an integral part of these interim condensed consolidated financial statements.
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
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 interim condensed consolidated financial statements were authorised for issue on 8 May 2026.
2.1 BASIS OF PREPARATION
The interim condensed consolidated financial statements of the Group for the three-month period ended 31 March 2026 ("period") have been prepared in accordance with International Accounting Standard (IAS) 34: Interim Financial Reporting and UAE Federal Decree Law No. (32) of 2021, as amended.
The interim condensed consolidated financial statements do not contain all information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2025. The same accounting policies, methods of computation, significant accounting judgments and estimates and assumptions are followed in these interim condensed consolidated financial statements as compared with the most recent annual consolidated financial statements, except for the new standards, interpretations and amendments adopted during the current period as explained below in notes 2.2 and 2.3.
The interim condensed consolidated financial statements have been prepared in United Arab Emirates Dirhams (AED), which is the Group's functional and presentation currency, and all values are rounded to the nearest thousand except where otherwise indicated.
The interim condensed 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 interim condensed consolidated financial statements on the basis described above requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which for the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Results for the period ended 31 March 2026 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2026.
Geopolitical events
The Group continues to monitor regional geopolitical developments, including the recent conflict involving the United States, Israel and Iran which has affected certain economic activities and market sentiment across the GCC. While the situation remains fluid as at the date of approval of these interim condensed consolidated financial statements and its longer-term impact is uncertain, management has assessed the implications for the Group's operations, financial performance, liquidity and asset valuations.
Based on this assessment, management has concluded that there is no material adverse impact on the Group's businesses. The Group's operations remain well supported by a strong backlog, ongoing construction activity, and customer collections broadly in line with expectations.
Management has also assessed potential impairment indicators and, having considered the most recent independent valuations as of 31 December 2025 that indicate significant headroom over the related carrying values, has concluded that no impairment or material valuation adjustment is required as at the reporting date.
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
2.1 BASIS OF PREPARATION (continued)
Geopolitical events (continued)
The Group maintains a strong liquidity position, supported by healthy cash collections and available funding. Accordingly, these developments are not expected to have a material adverse effect on the Group’s interim condensed consolidated financial position, results of operations, or cash flows. Management will continue to monitor the situation closely and will reassess its conclusions should circumstances change materially.
2.2 SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
The accounting policies, estimates, judgements and the methods of computation adopted in the preparation of these interim condensed consolidated financial statements are the same as those applied in the preparation of preceding annual published consolidated financial statements of the Group for the year ended 31 December 2025.
2.3 CHANGES IN THE ACCOUNTING POLICIES AND DISCLOSURES
A number of new standards are effective for annual periods beginning after 1 January 2026 and earlier application is permitted, however, the Group has not early adopted the new or amended standards in preparing these interim condensed consolidated financial statements.
Standards, amendments and interpretations in issue but not effective
Effective date
The following amended standards and interpretations are not expected to have a significant impact on the Group's consolidated financial statements:
Translation to a Hyperinflationary Presentation Currency – Amendments to IAS 21
1 January 2027
The Group does not expect the adoption of the above new standards, amendments and interpretations issued to have a material impact on the future consolidated financial statements of the Group.
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 interim condensed 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 interim condensed consolidated financial statements relates to its operation in the UAE.
Seasonality and cyclicality of interim operations
There were no significant items of seasonal or cyclical nature in the interim operations during the periods ended 31 March 2026 and 31 March 2025.
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
4 REVENUE AND COST OF REVENUE
| Three-month period ended | ||
|---|---|---|
| 31 March 2026 AED’000 | 31 March 2025 AED’000 | |
| Revenue | ||
| Sale of residential units | 6,520,457 | 4,638,720 |
| Sale of commercial units and income from development services | 335,800 | 385,592 |
| 6,856,257 | 5,024,312 | |
| Cost of revenue | ||
| Cost of residential units | 3,074,273 | 2,204,739 |
| Cost of commercial units | 209 | 41,117 |
| 3,074,482 | 2,245,856 |
Below is the split of revenue recognised over a period of time and single point in time:
| Three-month period ended | ||
|---|---|---|
| 31 March 2026 AED’000 | 31 March 2025 AED’000 | |
| Revenue recorded over time | 6,856,257 | 5,024,312 |
| 6,856,257 | 5,024,312 |
5 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
| Three-month period ended | ||
|---|---|---|
| 31 March 2026 AED’000 | 31 March 2025 AED’000 | |
| Sales and marketing expenses | 221,292 | 133,204 |
| Payroll and related expenses | 51,061 | 43,570 |
| Property management expenses | 21,738 | 16,111 |
| Depreciation (including right-of-use assets) | 2,581 | 2,023 |
| Other expenses | 249,150 | 184,814 |
| 545,822 | 379,722 |
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
6 FINANCE INCOME
| Three-month period ended | ||
|---|---|---|
| 31 March 2026 AED’000 | 31 March 2025 AED’000 | |
| Finance income on fixed and call deposits with banks | 359,690 | 263,945 |
| Other finance income (i) | 49,609 | 40,244 |
| 409,299 | 304,189 |
(i) This relates to finance income on unwinding of long-term receivable.
7 FINANCE COST
| Three-month period ended | ||
|---|---|---|
| 31 March 2026 AED’000 | 31 March 2025 AED’000 | |
| Finance cost - bank and related party borrowings | 1,714 | 3,744 |
| Other finance costs (i) | 52,198 | 41,188 |
| 53,912 | 44,932 |
(i) During the period, the Group has recorded finance cost on unwinding of long-term payable amounting to AED 16,327 thousands (31 March 2025: AED 12,371 thousands).
8 INCOME TAX
Following the enactment of the UAE Domestic Minimum Top-up Tax (“DMTT”) effective 1 January 2025, the Group has recognized an additional top-up tax expense to ensure compliance with 15% UAE Domestic Minimum Top-up Tax regulations. The Group falls within the scope of DMTT based on the applicable consolidated revenue threshold. The Group’s average annual effective tax rate (“ETR”) for the three-month period ended 31 March 2026 is 13.4% (period ended 31 March 2025 was 14.8%).
The major components of income tax expense in the interim condensed consolidated statement of comprehensive income are:
| Three-month period ended | ||
|---|---|---|
| 31 March 2026 AED’000 | 31 March 2025 AED’000 | |
| Interim condensed consolidated statement of comprehensive income | ||
| Current income tax expense | 542,637 | 410,375 |
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
| Interim condensed consolidated statement of financial position | ||
| Income tax payable balance at the beginning of the period/year | 2,228,429 | 486,367 |
| Charge for the period/year, net | 542,637 | 1,885,262 |
| Paid during the period/year | - | (143,200) |
| Income tax payable at the end of the period/year | 2,771,066 | 2,228,429 |
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
9 BANK AND CASH BALANCES
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
|---|---|---|
| Cash in hand | 1,055 | 1,064 |
| Current and call bank deposit accounts | 38,133,254 | 35,751,483 |
| Fixed deposits with original maturities of three months or less | 6,657,917 | 4,051,843 |
| 44,792,226 | 39,804,390 | |
| Fixed deposits with original maturities of more than three months | 2,021,033 | 1,505,363 |
| 46,813,259 | 41,309,753 |
As at 31 March 2026, cash and cash equivalents amount to AED 44,792,226 thousands (31 December 2025: AED 39,804,390 thousands).
Cash at banks earns interest at fixed rates based on prevailing bank deposit rates. Short-term fixed deposits are placed for varying periods between one day and four months, depending on the cash requirements of the Group, and earn interest at the respective short-term deposit rates.
As at 31 March 2026, balances amounting to AED 35,559,732 thousands (31 December 2025: AED 32,995,144 thousands) representing advances received from customers against sale of development properties which are deposited into escrow accounts. These deposits/balances are not under lien.
10 TRADE AND UNBILLED RECEIVABLES
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
|---|---|---|
| Trade receivable | ||
| Amounts receivable within 12 months | 1,255,846 | 1,206,649 |
| Unbilled receivables | ||
| Unbilled receivables within 12 months | 4,183,629 | 4,213,904 |
| Unbilled receivables after 12 months | 1,769,121 | 2,145,997 |
| 5,952,750 | 6,359,901 | |
| Total trade and unbilled receivables | 7,208,596 | 7,566,550 |
The above trade and unbilled receivables are net of AED 20,977 thousands (31 December 2025: 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 in full.
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
11 OTHER ASSETS, RECEIVABLES, DEPOSITS AND PREPAYMENTS
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
|---|---|---|
| Deferred sales commission (i) | 3,823,924 | 3,437,118 |
| Advances to contractors and others (ii) | 3,397,851 | 1,704,203 |
| Due from related parties (note 19) | 2,340,277 | 2,507,097 |
| Value added tax recoverable, net | 445,792 | 255,418 |
| Prepayments | 3,810 | 6,097 |
| Other receivables and deposits | 93,803 | 85,742 |
| 10,105,457 | 7,995,675 |
Other assets, receivables, deposits and prepayments are realisable within 12 months from the reporting date.
(i) The deferred sales commission expense incurred to obtain or fulfil a contract with the customers is amortised over the period of satisfying performance obligations, where applicable.
(ii) Advances paid to contractors at the commencement of works are adjusted against progress billings issued by the contractors throughout the project construction period.
12 DEVELOPMENT PROPERTIES
| 31 March 2026 AED’000 | |
|---|---|
| Balance at the beginning of the period | 21,485,928 |
| Add: Costs incurred during the period | 3,597,193 |
| Less: Costs transferred to cost of revenue during the period | (3,074,482) |
| Balance at the end of the period | 22,008,639 |
- Includes land acquisition cost.
13 LOANS TO JOINT VENTURES
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
|---|---|---|
| Emaar Dubai South DWC LLC* | 711,294 | 705,359 |
| Zabeel Square LLC* | 131,383 | 134,545 |
| Old Town Views LLC | 1,232 | 1,274 |
| 843,909 | 841,178 |
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 377,456 thousands (31 December 2025: AED 380,618 thousands) which is expected to be recovered after 12 months from the reporting date.
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
14 INVESTMENTS IN JOINT VENTURES
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
|---|---|---|
| Emaar Dubai South DWC LLC | 1,782,539 | 1,363,713 |
| Zabeel Square LLC | 305,589 | 297,980 |
| Old Town Views LLC | 7,377 | 8,233 |
| Net investment in joint ventures as at period/ year end | 2,095,505 | 1,669,926 |
The Group has the following effective ownership interest in its joint ventures:
| Country of Incorporation | Ownership 2026 | 2025 | |
|---|---|---|---|
| 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% |
During the period, the Group has recognised AED 426,505 thousands (31 March 2025: AED 69,861 thousands) towards its share of profit from joint ventures and AED 926 thousands towards dividend received from joint ventures (31 March 2025: Nil).
15 TRADE AND OTHER PAYABLES
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
|---|---|---|
| Project contract cost accruals | 4,174,440 | 3,846,680 |
| Dividend payable (note 21) | 4,000,000 | - |
| Creditors for land purchase | 2,305,837 | 2,498,288 |
| Payable to related parties (note 19) | 2,108,642 | 1,802,927 |
| Trade payables | 1,023,107 | 768,693 |
| Sales commission payable | 536,986 | 535,160 |
| Payable to authorities | 105,069 | 222,983 |
| Lease liabilities | 12,591 | 12,150 |
| Other payables and accruals | 353,855 | 461,995 |
| 14,620,527 | 10,148,876 |
16 INTEREST-BEARING LOANS AND BORROWINGS
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
|---|---|---|
| Net interest-bearing loans and borrowings at the end of the period/year | 3,673 | 3,673 |
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
16 INTEREST-BEARING LOANS AND BORROWINGS (continued)
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
|---|---|---|
| Interest-bearing loans and borrowings maturity profile: | ||
| After 12 months | 3,673 | 3,673 |
| 3,673 | 3,673 |
During 2022, the Group had obtained two new facilities aggregating to AED 3,673,000 thousands. The tenure of these new facilities is for a period of three 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 March 2026 is AED 3,673 thousands (31 December 2025: AED 3,673 thousands). Facility is renewed for 5 years in September 2025 and carry profit rates of 1 or 3-month EIBOR plus a margin of 0.95%.
During 2022, the Group also executed short term facility of AED 600,000 thousands. This facility carries interest of EIBOR plus 1% per annum and is secured by a corporate guarantee from the Parent Company. As at 31 March 2026 and as at 31 December 2025, the Group has neither drawn down nor availed any amount from the facility.
17 GUARANTEES AND CONTINGENCIES
The Group has provided a performance guarantee of AED 6,381,934 thousands (31 December 2025: AED 5,788,145 thousands) to the Real Estate Regulatory Authority (RERA), Dubai for its projects as per RERA regulations.
18 COMMITMENTS
At 31 March 2026, the Group has commitments of AED 24,560,858 thousands (31 December 2025: AED 20,815,401 thousands). This represents the value of contracts entered into by the Group including contracts entered for purchase of plots of land at period/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.
19 RELATED PARTY DISCLOSURES
For the purpose of these interim condensed 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.
13
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
19 RELATED PARTY DISCLOSURES (continued)
Related party transactions
During the period, the following were the significant related party transactions, which were carried out in the normal course of business on terms agreed between the parties:
| Three-month period ended | ||
|---|---|---|
| 31 March 2026 AED’000 | 31 March 2025 AED’000 | |
| Parent: | ||
| Revenue | 45,751 | 35,041 |
| Selling, general and administrative expenses (refer (i) below) | 212,000 | 157,474 |
| Repayment of lease liabilities | 833 | - |
| Finance cost (refer (iii) below) | 38 | - |
| Affiliated entities: | ||
| Revenue (refer (ii) below) | 246,520 | 286,892 |
| Selling, general and administrative expenses | 2,436 | 7,855 |
| Property development expenses | 58,090 | 49,449 |
| Repayment of lease liabilities | 440 | - |
| Finance cost | 68 | - |
| Joint Ventures: | ||
| Revenue | 42,373 | 5,194 |
| Directors, key management personnel and their related parties: | ||
| Selling, general and administrative expenses | 20 | - |
| Significant related party balances (and the interim condensed consolidated statement of financial position captions within which these are included) are as follows: | ||
| 31 March 2026 AED’000 | 31 December 2025 AED’000 (Audited) | |
| Parent: | ||
| Other assets, receivables, deposits and prepayments (refer (ii) below) | 350,402 | 250,605 |
| Trade and other payables | 2,067,219 | 1,760,297 |
| Affiliated entities: | ||
| Other assets, receivables, deposits and prepayments | 1,989,875 | 2,256,492 |
| Trade and other payables | 41,423 | 54,780 |
(i) Allocation of corporate expenses:
The Parent Company has provided certain corporate functions to the Group and costs associated with these functions were allocated to the Group. These functions included human resources, treasury, investor relations, finance and accounting, compliance, information technology, corporate and legal compliance, business development and marketing. As per Relationship Agreement, corporate expenses are allocated by the Parent on the basis of $3\%$ of revenue of the Group. This net balance is recoverable by the Parent Company on demand.
Emaar Development PJSC and its Subsidiaries
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 March 2026 (Unaudited) (continued)
19 RELATED PARTY DISCLOSURES (continued)
(ii) Recoverable from the Parent Company:
This mainly represents balances recoverable from the Parent Company with respect to the development costs incurred for the 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 was unsecured and repayable on demand. The Group has a total credit facility of AED 7,000,000 thousand (31 December 2025: AED 7,000,000 thousand) and this carries an interest rate at 3 months EIBOR plus 1% per annum.
Compensation of key management personnel
The remuneration of key management personnel during the period was as follows:
| 31 March 2026 AED’000 | 31 March 2025 AED’000 | |
|---|---|---|
| Short-term benefits | 2,908 | 2,721 |
| Employees’ end-of-service benefits | 199 | 133 |
| 3,107 | 2,854 |
During the period, the number of key management personnel is 10 (31 March 2025: 9).
20 FAIR VALUES OF FINANCIAL INSTRUMENTS
Financial instruments comprise financial assets and financial liabilities.
Financial assets of the Group include bank balances and cash, trade 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 deposits, accounts payable, retentions payable, payable to related parties, creditor for land purchase, sales commission payable 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 value of the financial assets and liabilities approximate same as their carrying values, largely due to short term maturities of these instruments.
21 DIVIDEND
A cash dividend of AED 4,000,000 thousand (AED 1 per share) for the year ended 31 December 2025 was approved by the shareholders of the Company at the Annual General Meeting held on 26 March 2026 and it was subsequently paid on 13 April 2026.