Damac Real Estate Development Ltd. Upgraded to 'BB+' by S&P on Robust Order Book

S&P Global Upgrades Damac's Credit Rating to 'BB+' Amid Strong Performance

S&P Global Ratings has upgraded Damac Real Estate Development Ltd.'s long-term credit rating to 'BB+' from 'BB', reflecting its robust order book and strong business performance. This upgrade highlights Damac's strategic position as a leading luxury property developer in Dubai, with a particular emphasis on its significant revenue backlog, currently standing at $20 billion as of September 30, 2025. Such financial health and future revenue visibility bolster investor confidence, indicating Damac’s capacity to manage and expand its array of high-profile projects across the Middle East. The stable outlook posited by S&P underscores expectations of continued robust presales and a firm market standing.

Damac's revenue backlog reaches $20 billion as of September 30, 2025.

Damac's Revenue Backlog Reaches $20 Billion, Signals Future Growth

According to Aurantius, Damac's revenue backlog has surged to $20 billion, marking a substantial increase from $18 billion at the end of 2024. This burgeoning backlog is indicative of Damac's ability to secure future revenue streams, with approximately $6 billion in sales recorded from both newly launched and existing properties up until September 30, 2025. S&P Global forecasts Damac's revenue to rise significantly, projecting $4.0 billion to $4.3 billion in 2025 and further increasing to $5.0 billion to $5.3 billion in 2026. Such figures not only underscore the company's robust sales strategy but also highlight its strong brand reputation in the competitive real estate market.

Dubai Property Market Bolsters Damac's Strategic Position

The UAE real estate market continues to experience robust growth, driven by high transaction volumes and increasing property values. As reported by Economy Middle East, Dubai's real estate market recorded $50.2 billion in transactions during the first half of 2025, contributing significantly to the UAE's total of $89 billion. Such vibrant activity in Dubai's property sector provides a fertile environment for Damac's operations,

Dubai's real estate market recorded $50.2 billion in transactions during the first half of 2025.

aligning with its strategy to capitalize on high demand for luxury residential properties. The region's economic momentum, spurred by increased oil production and foreign investment, further supports Damac's growth trajectory.

Improved Profitability and Deleveraging Enhance Damac's Financial Standing

Damac's financial management strategies have significantly strengthened its credit profile. As outlined in Aurantius, the company has demonstrated successful deleveraging efforts and improved profitability. These financial improvements not only contribute to the positive credit rating upgrade but also indicate a solid foundation for future expansion and project investment. This strategic financial management positions Damac favorably in the competitive luxury real estate market, enhancing its appeal to investors and stakeholders alike.

Residential Market Demand Drives Damac's Order Book

The high demand for residential properties in Dubai is a key factor contributing to Damac's strong order book. According to CBRE, the residential markets in Dubai and Abu Dhabi remain active, with sustained off-plan launch activities. This demand is fueled by a combination of factors, including a growing expatriate population and increased foreign investment in Dubai's real estate sector. Damac's ability to secure substantial presales contracts reflects its strategic alignment with current market trends, ensuring continued revenue growth and market leadership.

Future Prospects and Strategic Implications for Damac and Dubai

Looking ahead, Damac is well-positioned to capitalize on Dubai's thriving real estate market. With a strong revenue backlog and favorable credit rating, the company is poised to leverage its financial health to explore new projects and expand its portfolio. As S&P Global suggests, the stable outlook anticipates continued robust presales and the maintenance of a strong brand reputation. This positions Damac to remain a key player in Dubai's luxury real estate sector while also exploring opportunities for expansion within the broader Middle East region. The company's strategic focus on enhancing its financial standing and capitalizing on market demand ensures its continued relevance and success in the competitive property market landscape.