Our Geographies
In 2023, Aldar continued to forge a confident path forward as a leading integrated real estate player, leveraging its unique platform to accelerate its transformational growth agenda marked by significant scale and diversification across sectors and geographies.
In 2023, Aldar continued to forge a confident path forward as a leading integrated real estate player, leveraging its unique platform to accelerate its transformational growth agenda marked by significant scale and diversification across sectors and geographies.
Aldar witnessed strong growth in its home Abu Dhabi market, whilst expanding its presence – and bringing unique offerings – to Dubai and Ras Al Khaimah markets.
Aldar witnessed strong growth in its home Abu Dhabi market, whilst expanding its presence – and bringing unique offerings – to Dubai and Ras Al Khaimah markets.
Business Model
Aldar Properties is a leading real estate developer, manager and investor in the UAE with a diversified and sustainable operating model centred around two businesses: Aldar Development and Aldar Investment.
AED 42.1bn
Baa2
Aldar Development
Aldar Investment
Aldar Development
Aldar Investment
2023 Highlights
Operational Highlights
To corepel igenis audandi squiaspe nit qui quid modist, consequiae. Oluptatatus, quiame plabor simus nest
Our Iconic Places to Live
Our residential portfolio covers a diverse range of strategically located, high quality developments across Abu Dhabi, Dubai and Ras Al Khaimah, catering for everyone from single professionals to busy families. Our asset management business also owns a significant residential portfolio, leased to a mix of individual and corporate tenants.
Our Iconic Places to Work
Our commercial portfolio of mainly Grade A office space includes some of the most iconic developments in Abu Dhabi, such as HQ and ADGM Square. It attracts top-tier tenants from the UAE and the wider Gulf region, including the Government of Abu Dhabi, as well as blue-chip organisations from across the globe.
Our Iconic Places to Learn
We are Abu Dhabi’s leading education group, providing inclusive and innovative learning that inspires and empowers communities through Aldar schools and academies.
Our Iconic Places to Shop
From landmark destination malls such as Yas Mall and Al Jimi Mall to smaller, community-focused retail outlets around our residential developments, our retail portfolio meets the needs of a wide range of tenants and customers.
Our Iconic Places to Stay
From the white sands of Nurai Island, Abu Dhabi to the golden sands of DoubleTree by Hilton and Rixos Bab Al Bahr in Ras Al Khaimah, Aldar hotels and leisure destinations offer customer-centric experiences: peaceful beaches, remote deserts, bustling city centres and world-class golf clubs.
Driving value creation at scale and pace
This was a year of bold steps, creating substantial value for our shareholders and delivering on our strategic priorities for growth, diversification, and sustainability.”
The growth trajectory of Aldar’s business accelerated in 2023. For the company, this was a year of bold steps, creating substantial value for our shareholders and delivering on our strategic priorities for growth, diversification and sustainability.
This was set in the context of solid economic fundamentals in the UAE, which continued to develop as a world-class destination for lifestyle, business and investment. Enabled by a series of visionary reforms as part of the national transformation programme, including golden visas and a range of business-friendly policies, the UAE’s buoyant economy provides a macro-environment where the real estate sector can thrive.
As a leading player in the sector, we see substantial commercial and social opportunity in alignment with the country’s strategic priorities. The government is implementing a clear plan to drive capital inflows, provide world class infrastructure, invest in renewable and clean energy to achieve Net Zero emissions by 2050, and nurture Emirati talent, especially in the private sector. An increasingly vibrant and diversified economy will fuel further demand for high quality real estate in the coming years, and Aldar is well positioned to play a central role in the country’s socio-economic progress.
During 2023, Aldar astutely capitalised on many opportunities that have emerged in the changing environment in Abu Dhabi and beyond through disciplined capital deployment, tactical acquisitions and innovative concepts.
Accelerating its ambitious growth plans, Aldar further expanded its footprint outside of Abu Dhabi with market entry to Dubai, RAK and UK. At home, we continued to push through our growth agenda – we launched 14 new residential developments, became the operator of the largest integrated property and facilities management business in the region and consolidated our position as a leading player in education, hospitality, leisure, retail, logistics and offices.
As a result of this expansion and the exceptional performance of our core businesses, we reported a 41% increase in net profit to AED 4.4 billion. The Board of Directors has recommended a total dividend payout of AED 1.3 billion.
On behalf of Aldar’s Board of Directors, the Executive Management team and all our employees, I offer my gratitude to His Highness Sheikh Mohamed bin Zayed Al Nahyan, UAE President and Ruler of Abu Dhabi, and His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, for their continued support and vision.
My sincere thanks also goes to our many customers for placing their trust in the Aldar brand and all our employees who have played a vital role in this shared success.
Aldar Properties is making strong progress on implementation of its strategy to transform the company into an industry heavyweight.”
We continue to draw on core institutional strengths: a strong balance sheet; a rigorous approach to deal-making and capital deployment; and an ability to bring developments to market that are attuned to customer demand and serve the diverse needs of our communities.
Significant Growth
The company is operating at a significantly elevated scale compared to five years ago. Development sales in 2023 surged tenfold compared to 2018, the gross asset value of our investment property portfolio grew by more than 50% and net profit more than doubled, reaching AED 4.4 billion. Our development backlog – or revenue to be booked as our projects progress – has grown exponentially over this period to now stand at AED 36.8 billion, providing strong income visibility over the next two to three years.
This tremendous growth over a short timeframe has been witnessed across all our core platforms, enabling asset and geographical diversification and building long-term resilience.
Aldar Development’s sales doubled in value compared to 2022, attracting strong demand in our home market, Abu Dhabi, as well as in our first projects in Dubai and Ras Al Khaimah. In the process, we reached a broader customer base, including a growing vein of international buyers attracted by the UAE’s growing appeal as an investment and lifestyle destination.
Portfolio Investment
Aldar Investment continued to excel as an active asset manager. The business invested across the portfolio to drive rental and capital values, and to optimise resource efficiency, whilst increasing occupancy significantly through highly effective leasing strategies. The repositioning of Yas Mallhas been an overwhelming success, resulting in near-full occupancy and increased footfall, whilst occupancy at the prime ADGM Towers in Abu Dhabi’s financial district increased to 96% from 79% when acquired by Aldar in mid-2022.
In parallel, through key acquisitions over the last two years, we have expanded rapidly in prime sectors, including logistics, property and facilities management, hospitality and education. These platforms will continue to scale up to become key businesses in their own right in the coming years, whilst complementing and adding value to our development and investment property portfolios.
Further leveraging strengths in development and asset management, Aldar is investing in a AED 5 billion pipeline of ‘develop-and-hold’ commercial, retail and hospitality assets in the UAE to be completed over the next three to four years. The company is also committing AED 1 billion to develop and invest in logistics properties across the country.
At the same time, we also see opportunity beyond the UAE. Following our investment in Egyptian developer SODIC two years ago, we acquired UK developer London Square in 2023, whilst also investing in real estate private credit alongside Mubadala and Ares Management and entering a partnership with Carlyle to invest in warehouses and self-storage facilities. Our international footprint will remain an ancillary and important part of our increasingly diversified business, complementing our core UAE operations by providing exposure to mature markets. A key element of our approach is to bring benefits back to Aldar’s UAE business – whether it is through an enlarged sales network, collaboration on new developments or expertise in trends shaping mature markets, such as e-commerce, supply chain resilience and digitisation. Following another strong financial performance in 2023, Aldar is well positioned to capitalise on further growth in the UAE in the coming years as the country presses ahead with a substantial programme to diversify the economy further and invest up to AED 200 billion in the energy transition by 2030.
Benefitting from a strong balance sheet and access to global capital, we are building a company that is committed to implementing best practice in all aspects of ESG to build further resilience and serve the interests of diverse stakeholders, including our communities, employees, business partners and investors. This is being guided by our Net Zero Plan, which was launched in 2023 and sets a new regional and sector benchmark for private sector leadership on climate action.
I would like to take this opportunity to express my appreciation to the Board of Directors, Chaired by HE Mohamed Khalifa Al Mubarak, for their continued guidance and support and look forward to another successful year together.
A year of record performance and growth
In 2023, Aldar signalled a new chapter in its transformational growth journey, achieving a substantial increase in scale and diversification across the business.”
Net profit surged by 40% to a new record of AED 4.4 billion, driven by a 26% rise in revenues to reach AED 14.2 billion. EBITDA increased 39% year-on-year to AED 5.1 billion, and we are confident of continuing this growth trajectory given the company’s strong earnings visibility.
Supported by the government’s social and economic initiatives that are elevating the UAE’s prominence as a business, lifestyle and investment destination, our development and investment platforms have continued to outperform and deliver record-breaking results.
Aldar Development’s net profit surged by 70% to reach AED 2.7 billion in 2023. This notable growth was propelled by strong demand for our 14 launches in the UAE among local, resident expat and overseas buyers. Aldar Investment’s revenue rose 40% to AED 5.8 billion in 2023, with adjusted EBITDA increasing 40% year-on-year to reach AED 2.3 billion, surpassing our guidance.
From a funding perspective – and in line with our policies and approach – we continue to secure funding through a diverse range of sources.
The UAE banking system benefits from strong liquidity and healthy credit conditions, supported by the UAE’s robust macro-economic fundamentals. During the year, we secured new facilities totalling AED 4.8 billion, including AED 2.5 billion in sustainability-linked loans. In addition, we raised an inaugural USD 500 million green sukuk, which was four times oversubscribed and was among corporate issuances with the greatest price tightening during an issuance in 2023. The sukuk forms part of a USD 2 billion programme aligned with our Green Finance Framework.
The combined effect of these new facilities has extended the weighted average life of the debt for the group to 5.1 years, with no material debt maturities until October 2025.
As a leading real estate company, we are acutely aware of the responsibility we bear in supporting the energy transition and delivering on the UAE’s pathway to Net Zero by 2050. We are proud to have been among the first companies in the region to develop a science-aligned Net Zero Plan, underlining our commitment to sustainability and the ambition to decarbonise our value chain, supported by a roadmap featuring eight decarbonisation pillars.
In 2023, we started to put the infrastructure in place to deliver on our targets, including a partnership with Yellow Door Energy to provide 34 megawatts of solar power to 45 Aldar retail, education and hospitality assets for the next 20 years. We also partnered with Tadweer and Polygreen on a project to eliminate landfill and food waste through a regional first-of-its-kind circular model, to be implemented in 2024. From an operational asset perspective, we completed a LEED gap assessment with plans to uplift assets to LEED Gold and Platinum standards in the year ahead.
The company’s overarching sustainability strategy, which also encompasses our disciplined approach to risk management and governance, has become an integral element of Aldar’s DNA. This is reflected in a strong improvement over the last couple of years in our ESG ratings from external rating agencies. We achieved 47 points on the Dow Jones Sustainability Index (DJSI), maintaining our top spot in the GCC and within the top quartile of the 299 global real estate companies assessed. We also maintained a low-risk score of 15.9 on Sustainalytics Risk Index and continued to hold our BBB rating in MSCI.
As we look ahead and take the next steps in our growth trajectory, we intend to continue to build significant scale and diversification, whilst maintaining a good balance between development sales and recurring income streams. Leveraging our strong balance sheet – with free cash of AED 2.9 billion and AED 7.5 billion in undrawn facilities – and economies of scale, we see a strong opportunity to drive earnings growth and create further shareholder value.
Market Context
We operate in a rapidly changing environment. By understanding key trends, we can take advantage of opportunities as they arise and act quickly to reduce risks to our business where necessary.
Strategic Framework
Our goal is to drive maximum financial returns for our shareholders by continually growing our portfolio and exploring new opportunities.
Financial horizon
Financial horizon
STRATEGIC OBJECTIVES:
- Maximise shareholder value
- Grow profits and enhance margins
- Expand and drive sustainable growth
Operational excellence
Operational
excellence
Aldar is committed to delivering high quality projects, on time and within budget, to maximise the potential of its assets, whilst creating synergies through strategic investments, optimising operations and embedding environmental and quality considerations across all aspects of the business.
WHAT WE SAID WE WILL DO
- Continue to utilise our agile operating model to maximise the value of our existing and new assets as well as identify synergies that can further enhance our performance.
- Integrate 2022 acquisitions into our businesses, unlock more value and synergies and leverage our expertise to extract the full potential of these assets.
- Achieve excellence in our construction activities and strategic initiatives, ensuring that they progress as planned and are completed on time.
- Scale our operations across different geographies and segments, whilst maintaining our cost discipline and managing our cost base efficiently.
WHAT WE DID IN 2023
- Unlocked c.25% in synergies across the Group, further strengthening Aldar’s position as an efficient real estate platform.
- Successfully onboarded all 2022 and 2023 acquisitions into our portfolio (including Basatin Landscaping, Spark Security Services and more).
- Extracted value from various asset transformation initiatives, such as the repositioning of Al Hamra Mall in Ras Al Khaimah and Yas Mall in Abu Dhabi.
- Achieved 93% overall occupancy across Investment Properties portfolio and reached 96% occupancy rate at ADGM Towers as a result of leasing efforts and increased demand for Grade A office space in Abu Dhabi.
- Progressed, on target, with our CAPEX projects and various transformation programmes across the portfolio.
WHAT WE WILL DO IN 2024
- Standardise design practices, strategically strengthen the supply chain and optimise delivery to enable our development growth plan for the next five years.
- Strategically allocate capital to manage risks, seize opportunities and unlock strategic sectors or geographies.
- Scale operations across geographies and sectors, whilst efficiently managing cost base against potential economical and political headwinds.
Customer
centricity
Customer
centricity
Aldar prioritises customer engagement and exceptional experiences, fostering trust and engagement through unified marketing and loyalty programmes whilst integrating social and environmental sustainability into its core business practices.
WHAT WE SAID WE WILL DO
- Implement an integrated customer relationship management (CRM) system across the portfolio to drive better insights and responsivenes.
- Attract new customers segments through international marketing and onboard new customers from recent acquisitions.
- Offer new products and segments to the UAE market (e.g., branded homes, co-living, wellness and ultra luxury).
- Launch and implement Aldar’s Net Zero strategy to reduce our carbon footprint and lead in sustainable development.
WHAT WE DID IN 2023
- Released an enhanced version of CRM within our Development business, while unlocking digital SPAs to our customers.
- 21% improvement in net promoter score on Aldar Group’s performance compared to 2022.
- Successfully engaged 104,000 customers across our diverse portfolio, which reflects our commitment to understanding and catering for the needs of our customers.
- Accessed a new customer base as an outcome of our sales expansion to new markets such as Dubai and Ras Al Khaimah as well as onboarding of acquisitions in 2023.
- Launched branded, wellness and ultra-luxury products such as The Source, Nobu Residences and Nikki Beach.
- Launched Net Zero strategy, solidified commitment through agreements signed at COP28 and invested in retrofit projects across our portfolio.
WHAT WE WILL DO IN 2024
- Deliver a seamless, quality assured and digitally enabled journey for projects handed over in 2024.
- Leverage on new customers onboarded through strategic acquisitions and drive higher sales through our expansion into new Emirates.
- Offer new supplementary services based on a variety of new development products.
- Launch and realise benefits of solar energy as well as energy consumption reduction efforts.
Growth &
expansion
Growth &
expansion
Aldar aims to explore and invest in regional and international expansion whilst growing its local portfolio in a sustainable and agile manner, in addition to actively engaging its key stakeholders and ensuring optimal asset utilisation to drive growth.
WHAT WE SAID WE WILL DO
- Continue our proactive deployment of capital in our investment portfolio.
- Accelerate focus on alternative investments and asset classes.
- Identify opportunities in priority markets and execute them.
- Expand into Dubai and Northern Emirates, and grow the Egypt platform.
- Grow presence in our core Abu Dhabi market.
WHAT WE DID IN 2023
- Recorded AED 27.9 billion in group development sales, of which AED 16 billion were from overseas and expat resident buyers.
- Deployed and committed AED 9.0 billion across existing and new sectors and geographies.
- Created Aldar Estates, the largest integrated Facility and Property Management company in the region, through the merger with Eltizam Asset Management.
- Expanded into Dubai, with the launch of Haven; RAK, with the launch of Nikki Beach Residences; Bahrain through our education platform with Cranleigh Bahrain; and the UK through the acquisition of London Square.
WHAT WE WILL DO IN 2024
- Strategically deploy capital into our strategic growth sectors and geographies.
- Accelerate focus on alternative real estate investments locally and internationally.
- Continue growth in Abu Dhabi, whilst expanding into Dubai, Northern Emirates, Egypt and the UK.
People, innovation & digital transformation
People, innovation & digital transformation
We pursue sustainable growth through innovative marketing strategies, new market opportunities and an ongoing focus on efficient working practices.
WHAT WE SAID WE WILL DO
- Invest in value-accretive digital future technology and venture capital across the businesses.
- Position Aldar as a digital and data driven organisation.
- Attract high-calibre talent and contribute to Abu Dhabi’s private sector growth.
WHAT WE DID IN 2023
- Invested in transforming our digital customer journey, digital backbone through leveraging artificial intelligence and our existing digital ventures.
- Implemented multiple data projects in the field of risk management and artificial intelligence.
- Piloted multiple start-ups in the sustainability space, yielding great results such as CO2, cost and waste reduction.
- Onboarded 661 Emiratis as part of the NAFIS programme, sourcing great talent from top companies internationally.
- Maintained our status as a great place to work.
WHAT WE WILL DO IN 2024
- Release our digital transformation through our truly digital platforms.
- Expand our digital backbone to cover Aldar’s entire ecosystem.
- Focus on scaling current successful pilots to cover Aldar’s value chain, whilst scouting for new start-ups and ideas.
- Launch and implement our culture transformation programme.
Our Approach to Sustainability
The UAE demonstrated its longstanding commitment to addressing climate change during its ‘Year of Sustainability’, culminating in its role as a global convener for climate action at the historic COP28.
At Aldar, we have made great progress in 2023 on our journey towards a more sustainable future, working hand-in-hand with our stakeholders to drive positive change across our business and our region.
At Aldar, we are deeply committed to sustainability
The UAE demonstrated its longstanding commitment to addressing climate change during its ‘Year of Sustainability’, culminating in its role as a global convener for climate action at the historic COP28.
At Aldar, we have made great progress in 2023 on our journey towards a more sustainable future, working hand-in-hand with our stakeholders to drive positive change across our business and our region.
Shaping a Better Future
Shaping a Better Future
We aim to create a business culture where sustainability is at the heart of everything we do, and where the concept of sustainability informs the way we operate, collaborate, innovate and grow.
Creating Sustainable Places
Creating Sustainable Places
Creating sustainable places is not just for ourselves but for the planet and generations to come. This means building sustainable, inspiring places that enrich lives, nurture communities and exist in harmony with nature. As the leading integrated real estate developer and asset manager in the Middle East, we have a unique opportunity and responsibility to make this vision a reality.
Our Net Zero Plan and targets
Climate change presents one of the most significant and complex set of risks that property developers, owners and managers face today. 2023 marked a pivotal milestone for Aldar with the launch of our Net Zero Plan.The Net Zero Plan outlines Aldar’s targets and the actions that we will take in our decarbonisation journey, with the ultimate goal of achieving Net Zero emissions across all scopes by 2050. Our Net Zero targets and Plan are aligned to the Science Based Targets Initiative (SBTi) Corporate Standard.
The Net Zero Plan demonstrates our commitment to reducing the embodied carbon of our developments and decarbonising our operations, taking a holistic approach across the value chain from design and construction to property management and acquisitions. The Plan will be put into action through our eight Net Zero levers:
- Low carbon design: an Aldar Sustainable Design Standard to embed low carbon active and passive design options, maximising energy efficiency, building performance and asset climate resilience.
- Low carbon supply chain: a supply chain incentivised by Aldar to innovate around low carbon products, materials and manufacturing processes.
- Green construction: a whole lifecycle approach to assets that prioritises low carbon site practices and construction material procurement.
- Clean energy: prioritise use of clean energy through grid decarbonisation and procuring clean energy generated by government instruments.
- Resource efficiency and management: upgrading current systems to reduce leakage and improve asset efficiency in use.
- Tenant initiatives: developing a programme of tenant engagement regarding all leased and managed assets, offering guidance and incentives for more sustainable behaviours.
- Circular economy: better waste management during design, build and use phase, prioritising diversion from landfill, increasing greywater recycling and supporting the local waste sector.
- Sustainable acquisitions: all new investments and acquisitions will be guided by criteria that formally integrate sustainability considerations into the end-to-end investment decision making process.
Creating Societal Value
Creating Societal Value
Our human-centric and customer-focused approach means that providing sustainable solutions and fostering well-being is built into the way we operate. Through our extensive portfolio spanning residential, retail, offices, education, and hospitality, we focus on providing consistently high-quality services and experiences to all our customers.
Social value creation sits alongside our environmental and Net Zero actions as an integral part of our wider commitment to create spaces and communities that enhance the quality of life for our customers. We apply this lens to all our developments and investments to ensure we contribute to a modern and sustainable economy and society.
Through the Group’s diversified business functions, we build and operate sustainable spaces that are inclusive and support the mental and physical wellbeing of those who live there or visit them. We continue to develop innovative, human centric and digital solutions to engage with our customers and ensure their priorities are reflected in the actions we take.
Our community outreach activities are directed by our three focus areas: Live, Belong and Sustain.
Live
Objective: motivated by our mission to foster healthy and joyful living, we pledge to integrate our positive social impact strategy across Aldar communities and beyond, addressing every human need:
- Ensuring access to housing and safety
- Cultivating happy and healthy communities
- Facilitating access to quality education
BELONG
Objective: we are dedicated to crafting an inclusive and accessible economy that celebrates diversity, advocates for inclusion and nurtures a sense of belonging. As responsible corporate citizens, we are mindful of our duty to enhance and build communities that extend a warm welcome to everyone. We focus on doing this by:
- Empowering People of Determination
- Enhancing workers’ welfare
- Supporting relief campaigns for vulnerable communities
- Establishing accessible communities for all
SUSTAIN
Objective: our Sustain objective is to construct communities that are both resilient and innovative, employing solutions that align with the dynamic ecosystem of the UAE. We aim to contribute to the country’s transition into a knowledge-based society and promote Emiratisation in the workforce.
- Empower Social Enterprise
- Foster UAE National TalentsEnhancing workers’ welfare
- Expand Community and youth Outreach
Creating a Responsible Legacy
Creating a Responsible Legacy
Creating a responsible legacy is central to our goal of long-term business development, Net Zero alignment and the creation of societal value.Our approach to strong governance is fuelled by comprehensive ESG due diligence tools, risk management frameworks and clear leadership from the top that supports our centralised sustainability approach.
We acknowledge that we have a responsibility to our employees and wider workforce and strive to be an employer of choice that attra
Diversity, development, collaboration and ambition are the core values of our company culture and are reflected throughout the business starting with our leadership positions. Our wide-ranging talent development programme and trainings support the career progression of all our employees.
We maintain high occupational health and safety standards for our employees and wider workforce. This requires rigorous training and robust policies alongside informed engagement with our contractors and supply chain to ensure a safe working environment for everyone.
Economy, Community, People & Environment
Economy, Community, People & Environment
Economy
We support a thriving economy through stable, responsible, and diversified growth.
Community
We’re part of a wider community, so we make decisions with the best outcomes for all our stakeholders.
People
We cultivate a thriving ecosystem of talent where passion ignites, skills flourish, and possibilities are created.
Environment
We are proactive and responsible environmental stewards at every stage of the asset lifecycle and throughout our value chain.
