S&P Global expects no liquidity pressures on four of its rated developers amid the US-Israel and Iraq war.

The companies rated include Dubai-listed Emaar Properties, PNC Investments, Omniyat Holdings and  Damac Real Estate Development.

Developers were active in the sukuk and debt capital markets to raise funds to finance land acquisitions in 2025-2026, the rating agency said in a new report.

Damac and Omniyat each issued $600 million sukuk in February and March 2026, respectively, while PNC Investments and Omniyat issued $1.25 billion and $900 million, respectively, in 2025.

“Debt maturities remain quite manageable in 2026 for the companies without the need to raise new funding,” S&P stated.

Capital expenditure (capex) needs for pure developers are limited, while investments in small community projects are expected to generate recurring revenue.

“Damac, Omniyat and PNC investments are negligible over our forecast horizon (2024-2027),” the report added.

However, Emaar has sizable, planned annual capex plans of AED10-11 billion ($2.72-3 billion) in 2026-27, much of which is earmarked for Dubai Creek Mall, the Dubai Creek Tower, the development of residential units for leasing and investments in mall assets, especially the expansion of Dubai Mall.

“We think a significant portion of the company’s investment remains flexible as some projects can still be delayed, if needed,” the report said.

Although it is still early to draw definitive conclusions, S&P expects investment decisions to be recalibrated or postponed for all developers.

Commitments for assets nearing completion are likely to proceed, but companies with flexibility will prioritise liquidity and cash flow over new
investments and land purchases, the report said.

 (Editing by Seban Scaria seban.scaria@lseg.com)