Research Update: Dubai-Based Damac Real Estate Development Ltd. Outlook Revised To Positive On Strong Order Book; Affirmed At 'BB-'

Robust activity for Dubai's residential real estate sector in 2022 resulted in more than UAE dirham (AED20 billion) in presales for Damac, which is materially higher than we expected and far surpasses the AED7.8 billion the company achieved in 2021. With the enlarged order book and market momentum, visibility of the company's revenue for the next two to three years has significantly improved. We have therefore revised our outlook on Damac to positive from stable and affirmed our 'BB-' credit ratings on Damac and its senior unsecured sukuks. The positive outlook indicates the possibility of an upgrade over the next 12 months if demand for residential property remains resilient despite global economic pressures, and Damac's revenue and EBITDA continue increasing,

...- Robust activity for Dubai's residential real estate sector in 2022 resulted in more than UAE dirham (AED20 billion) in presales for Damac, which is materially higher than we expected and far surpasses the AED7.8 billion the company achieved in 2021. - With the enlarged order book and market momentum, visibility of the company's revenue for the next two to three years has significantly improved. - We have therefore revised our outlook on Damac to positive from stable and affirmed our '##-' credit ratings on Damac and its senior unsecured sukuks. - The positive outlook indicates the possibility of an upgrade over the next 12 months if demand for residential property remains resilient despite global economic pressures, and Damac's revenue and EBITDA continue increasing, maintaining a solid market share in Dubai....

Research Update