The UAE Central Bank monitored 6 positive indicators in the real estate sector during 2019, despite the slowdown in the Gulf region and the Middle East, where the return on assets increased in addition to To the return on equity and the level of profitability.
According to the Emirates News Agency, the latest reports from the UAE Central Bank showed that the sector's profitability in general remained in good shape, mainly driven by the strong profits recorded by Emaar Group. And Aldar Properties during the year 2019, measured by the positive return on assets and equity.
On the level of liquidity of the sector companies, the same report indicates that their indicators also reflected the availability of a stable environment, as the current liquidity ratio reached about 1.7%, and the sector’s indebtedness, compared to the financial leverage ratio, also appears in a good position at a little less than 1%, noting that the leverage ratio It is a liquidity ratio that measures the ratio of total corporate liabilities compared to total equity and capital.
As for the other positive indicator for the sector, it was that the interest coverage ratio remained good as well, and this ratio measures the ability of companies to cover interest payments through their revenues, and it averaged 4.9 Approximately% during the year 2019.
and in light of the positive indicators of the sector, the share of real estate and construction loans increased and constituted about a third of the total corporate loans portfolio for the banking system.
The growth rate of loans on an annual basis in 2019 for companies in the real estate and construction sector was 11% compared to 9.8% in 2018.
The real estate sector in the UAE is dominated by Emaar Real Estate and Aldar Properties, which represent about 46% of the market value of the sector that includes 13 companies, according to the financial statements issued by these companies with End of the year 2019.
