1. EMAAR Financial Analysis
Course: PRMG 030
(Project budgeting and Financial Control)
Instructor: Eng. Ali Kortam, PMP, CCP, PSP
Done By:
Mustafa Saad El-abbasy ID number: 700150758

2. What is EMAAR
Emaar Properties is a real estate development company located in the United Arab
Emirates (UAE). It is a public joint-stock company and is listed on the Dubai Financial Market
asEMAAR. The company operates internationally providing property development and management
services. With six business segments and 60 active companies, Emaar has a collective presence in
36 markets across the Middle East, North Africa, Pan-Asia, Europe and North America. Emaar
Properties is one of the largest real estate developers in the UAE and is known for various large-
scale projects such as developing BurjKhalifa, the tallest building in the world.
Emaar’s History
Emaar Properties was founded and incorporated in 1997 . As one of the leading developers in
the UAE, Emaar has diversified interests in real estate including both commercial and residential
property development, as well as malls and hospitality. The Dubai government initially owned 100
percent of the company while the founding shareholders held 24.3 percent when operations as a
public company commenced after the IPO in July 1997. The following year, Emaar announced its
plans to build Dubai Marina. In 2000, Emaar Properties was listed on the Dubai Financial Market and
became the first property company to offer shares to foreign nationals.
Emaar International LLC was established in 2004 and signified Emaar's expansion into foreign
markets. The company has ongoing projects in Africa, Asia, North America, and throughout the
Middle East. In 2005, Emaar Hotels & Resorts LLC was established in an exclusive deal with Giorgio
Armani to launch a collection of luxury hotels in the designer brand's name.
The Dubai Mall officially opened in 2008, and BurjKhalifa in 2010. Despite a collapse in the real estate
market in 2009, Emaar reported that BurjKhalifa had reached 80 percent occupancy by fall 2012. By
2014, Emaar was holding over $11.4 billion in real estate investments.
In 2014, Emaar Properties announced its plan to sell shares of its malls and retail business to the
public. The IPO is one of the largest in the region since the global financial crisis. Emaar Malls Group
became a publicly traded company on the Dubai Financial Market in October 2014. Closing at
3.25 dirhams with approximately 535 million shares traded, the IPO was the largest in Dubai since
2007. Also in 2014, Emaar opened the world’s highest observation deck, At the Top, BurjKhalifa SKY.
The highest man-made vantage point sits 555 metres up on the 148th floor of BurjKhalifa.

4. v 2015 compared to 2014 (Horizontal Analysis)
ÿ Balance sheet:
Total assets increased 5377.53represented by 7.25%
Total liabilities increased 273.73 represented by 0.66% (slight increase)
Total equity increased 5103.81 represented by 15.46%
¸ This guides that EMAAR expanded its assets base during 2015.
ÿ For the following analysis of the Income statement shows the following :
Net revenue increased 3730.5 represented by 37.57% compared to 2014
Cost of revenue increased 2408.29represented by 60.37%
Total operating expenses increased 2943.96 represented by 45.48%
¸ Overall, gross profit and net income were up substantially. Gross profit increased
22.26% and net income 23.96% in 2015 compared to 2014, EMAAR profit trend
appears favorable.

6. v 2015 compared to 2014 (Vertical Analysis)
ÿ Balance sheet :
We can see that current assets increased from15.68% of in 2014 to 19.16% in 2015.
Also retained earnings increased from 38.26% in 2014 to 42.23% in 2015
Total equity increased also from 44.5% in 2014 to 47.9% in 2015,
¸ This means that EMAAR keeps going on in its growth by increasing assets, retained
earnings and total equity.
ÿ Income statement:
Cost of revenue increased in 2015 by 6.66% compared to 2014 (46.83%vs40.17%)
Also total expenses increased 3.75% (68.94%vs65.19%)
As a result it is not surprising to see net income as a percent of total revenue decreased from
(33.16%) in 2014 to (29.9%)