Damac Real Estate Development Ltd. (Damac) increased its revenue backlog to $20 billion as of Sept. 30, 2025, up from $18 billion at year-end 2024, and it has 70%-80% of projects already presold, providing solid revenue visibility over the next two to three years amid a strong residential real estate market in Dubai. We expect Damac's operating cash flow to remain strong in 2025-2026, supported by healthy demand despite growing investments in land, dividend payments, and the cyclical nature of real estate development in Dubai, which is currently experiencing peak cycle conditions. We therefore raised our long-term issuer and issue ratings on Damac and its senior unsecured sukuks to 'BB+' from 'BB'. The stable outlook indicates our expectation that Damac's
