Emaar Properties and Emaar Development Approach DFM Trade Limits.
Dubai: Emaar Properties and Emaar Development witnessed significant gains of nearly 15% on the Dubai Financial Market (DFM) within the first 90 minutes of trading. This surge was driven by the Dubai-based property developer’s announcement of a substantial dividend increase.
Emaar Properties’ share price climbed to Dh11, marking a 14.7% rise, while Emaar Development, which oversees UAE operations, surged to Dh13.7, up by 14.64%. The DFM enforces a 15% ‘trade limit’ on the upside, which is the maximum allowable increase for a stock within a single trading session. Both Emaar entities approached this limit, reflecting strong investor enthusiasm.
“If the positive sentiment continues, Emaar could well be among the top three performing stocks on the DFM for 2024,” stated an analyst. “Most investors were not anticipating such a steep dividend hike, despite the developer consistently achieving new highs in recent quarters. This unexpected increase is significantly boosting the stocks’ performance today.”
On December 13, Emaar confirmed its decision to distribute 100% of its share capital as dividends for 2024, amounting to Dh8.8 billion ($2.4 billion). In comparison, the dividend payout in 2023 was Dh0.5 per share, totaling Dh4.4 billion.
“This is a 100% increase in dividends paid compared to 2023,” a company statement read. “This significant milestone reflects Emaar’s robust financial performance and dedication to investor satisfaction.”
The 2024 dividend distribution is projected to result in the total value of initial investments growing almost fourfold since the company’s inception.
“We’re thrilled to see our early investors realize returns that have multiplied four times,” said Mohamed Alabbar, founder of Emaar Properties.
In addition to the impressive dividend announcement, Emaar reported revenues of Dh50 billion and a sales backlog of approximately Dh100 billion by the end of the first nine months of 2024, underscoring the company’s strong market position and sustained growth.
