Dubai-listed Emaar Properties has sufficient liquidity to cover debt maturities of 4.8 billion UAE dirhams ($1.3 billion) through June 2026, according to a report by Moody's Ratings.

The company's liquidity is excellent, with a cash balance of 25.4 billion UAE dirhams ($7 billion) as of 31 March 2025 (excluding restricted cash in escrow accounts) and undrawn revolving credit facilities of AED 7.4 billion ($ 2 billion), the rating agency said.

However, a material portion of Emaar's cash is restricted as a regulatory requirement to deposit customer installments linked to development projects in escrow accounts (AED 32.9 billion out of AED 58.3 billion as of March 2025).

Emaar's cash profit is released from these accounts as contractors get paid through the escrow accounts and projects get delivered, the report said.

Moody's expects Dubai's real estate market to remain stable over the next 12 to 18 months, following a period of significant growth.

 Average residential property prices rose by approximately 78 percent, driven by robust housing demand between September 2020 and April 2025.

The surge has been supported by a steady influx of expatriates contributing to population growth, positive investor and high-net-worth individual sentiment and strong local consumption amid improved economic conditions.

"We expect solid demand over the next 12 months to balance expected residential property deliveries, resulting in a more normalised average residential property price growth rate," Moody's said.

The rating agency has upgraded Emaar's long-term issuer ratings to Baa1 from Baa2. 

It has also upgraded Emaar Sukuk Limited's backed senior unsecured bonds to Baa1 from Baa2 and backed senior unsecured medium-term note programme to (P)Baa1 from (P)Baa2. 

The outlook remains stable for both entities, the report said.

(Writing by P Deol; Editing by Anoop Menon)

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