Emaar Properties is maintaining progress across its development projects despite higher construction costs and regional uncertainty, with some projects now being delivered ahead of schedule, the company’s founder and chief executive Mohamed Alabbar said.
Speaking at the Bloomberg Invest Dubai event on Thursday, Alabbar said construction material costs had increased by around 5 per cent, but the company was supporting contractors where necessary to prevent delays.
“I’m glad contractors are moving on time. In fact, we deliver ahead of time now,” he said.
Alabbar’s comments come as developers across the region face uncertainty over material prices, supply chains and construction schedules amid the ongoing conflict in the Middle East.
Despite continuing with its existing developments, Emaar plans to postpone the tender for a major tower until conditions improve. Alabbar did not identify the project by name, but Emaar had previously announced plans to seek bids for the redesigned Dubai Creek Tower.
The tender had been expected earlier this year but was delayed as the conflict began around the time the process was due to be launched. Alabbar said the company would wait for the situation to cool before moving ahead.
The decision reflects a cautious approach to launching major new projects while geopolitical uncertainty remains elevated. S&P Global has assumed that the regional conflict could continue into 2027.
The Dubai Creek Tower project is a major part of Emaar’s development plans. Its redesign and tender process are expected to determine the next stage of the project, although the company has not announced a revised timetable.
Alabbar also discussed the impact of regional conditions on Emaar’s retail and hospitality businesses, reporting a decline in customer traffic and hotel occupancy.
Traffic across Emaar Malls, which includes Dubai Mall and Dubai Hills Mall, fell by 10 per cent. The decline follows five years of growth, during which visitor numbers increased by around 10 per cent, he said.
Despite the reduction, Alabbar said retailers remained comfortable with trading conditions.
The company’s hospitality operations have also experienced lower occupancy. Alabbar said occupancy had fallen to around 65 per cent from approximately 80 per cent previously, describing the current level as acceptable.
His remarks suggest that, while the company is continuing construction and supporting contractors, it is taking a more measured approach to launching large developments until regional conditions become clearer.
Emaar is one of Dubai’s largest property developers, with interests spanning residential projects, shopping malls and hospitality. Its performance provides an indication of how the emirate’s property and tourism sectors are responding to the current regional environment.
