The UAE’s real estate sector achieved six positive indicators in 2019 despite the economic slowdown in the GCC and the Middle East, highlighted by a surge in asset revenues, ownership rights revenues and profits in various indicators, said a report.
 
The companies, Emaar and Aldar, dominated the real estate sector, representing around 46 per cent of the total value of the market, which comprises 13 companies, reported state news agnecy Wam.
 
A recent report by the bank showed that the sector’s profitability is generally good, mainly driven by solid profits achieved by Emaar and Aldar last year.
 
On the liquidity front, the report pointed out some indicators that showed the presence of a stable economic environment, with current liquidity being around 1.7 per cent, and the sector’s debt to leverage ratio being just below 1 per cent.
 
Another positive indicator is the interest coverage ratio, which also maintained a steady level. This ratio, which measures the ability of companies to cover interest payments with their revenues, averaged at around 4.9 per cent in 2019.
 
The share of real estate and construction loans also increased and accounted for one-third of the total loans of companies, said the report.
 
The growth rate of loans per annum for companies in the real estate and construction sector was 11 percent in 2019, compared to 9.8 percent in 2018, it added.

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