Last year saw a divergence in the fortunes of property developers in Dubai and Abu Dhabi. Emaar Properties PJSC, based in Dubai, reported a significant 58% decline in profit, while Damac Properties PJSC recorded its second consecutive full-year loss, highlighting the impact of oversupply exacerbated by the COVID-19 pandemic. In contrast, Aldar Properties PJSC in neighboring Abu Dhabi fared better than Emaar and Damac, posting a profit nearly unchanged from the previous year, thanks to government contracts. Dubai has been particularly affected by a property glut and weakening demand, leading to a more than 30% decrease in home prices since the market’s peak seven years ago, a decline further aggravated by the pandemic. In response, the government established a committee last year to manage supply and demand, while property developers temporarily halted new projects.
