Emaar Properties FS Q2 2022 English

Emaar Properties PJSC
and its Subsidiaries

UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
Emaar Properties PJSC and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the Period Ended 30 June 2022
Table of Contents
Pages
Report on Review of Interim Condensed Consolidated Financial Statements 1–2
Interim Condensed Consolidated Income Statement 3
Interim Condensed Consolidated Statement of Comprehensive Income 4
Interim Condensed Consolidated Statement of Financial Position 5
Interim Condensed Consolidated Statement of Changes in Equity 6–7
Interim Condensed Consolidated Statement of Cash Flows 8
Notes to the Interim Condensed Consolidated Financial Statements 9 – 51

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
Period ended 30 June 2022 (Unaudited)
(US $1.00 = AED 3.673)

Six-month period ended Three-month period ended
────────────────── ─────────────────
30 June 30 June 30 June 30 June
2022 2021 2022 2021
Notes AED’000 AED’000 AED’000 AED’000
(Restated)* (Restated)*
Revenue 5 13,574,918 12,359,981 6,939,528 6,439,458
Cost of revenue 5 (6,743,513) (6,984,199) (3,502,883) (3,722,307)

─────── ─────── ─────── ───────
GROSS PROFIT 6,831,405 5,375,782 3,436,645 2,717,151
Other operating income 206,441 169,350 114,701 99,204

Other operating expenses (65,617) (57,696) (32,591) (34,352)
Selling, general and administrative
expenses 6 (1,503,336) (1,992,680) (746,111) (1,000,900)
Depreciation of property, plant
and equipment (291,340) (295,728) (142,844) (150,450)
Depreciation of investment properties (348,383) (299,336) (182,270) (149,642)
Finance income 7(a) 313,065 180,191 206,413 95,364
Finance costs 7(b) (481,283) (489,587) (248,259) (257,133)
Other income/(expenses), net 341,957 123,502 (1,998) 13,903
Share of results of associates and
joint ventures 167,909 (5,904) 129,548 94,784
Reversal of impairment 64,359 - - -
─────── ─────── ─────── ───────
PROFIT BEFORE TAX 5,235,177 2,707,894 2,533,234 1,427,929
Income tax expense (128,235) (118,014) (80,233) (37,525)

─────── ─────── ─────── ───────
NET PROFIT FOR THE PERIOD 5,106,942 2,589,880 2,453,001 1,390,404
═══════ ═══════ ═══════ ═══════
ATTRIBUTABLE TO:
Owners of the Parent 4,300,431 1,560,545 2,061,357 903,685
Non-controlling interests 806,511 1,029,335 391,644 486,719
─────── ─────── ─────── ───────
5,106,942 2,589,880 2,453,001 1,390,404
═══════ ═══════ ═══════ ═══════
Earnings per share attributable to
the owners of the Parent:
- basic and diluted earnings per share (AED) 0.53 0.22 0.25 0.14
═══════ ═══════ ══════ ══════
* Certain amounts shown here do not correspond to the interim condensed consolidated financial statements of prior
period and reflect adjustments made as detailed in Note 2.2
The accompanying notes 1 to 24 form an integral part of these interim condensed consolidated financial statements.
3
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(US $1.00 = AED 3.673)

─────────────── ───────────────
2022 2021 2022 2021
Notes AED’000 AED’000 AED’000 AED’000
(Restated)* (Restated)*
Net profit for the period 5,106,942 2,589,880 2,453,001 1,390,404
Other comprehensive (loss) / income to

be reclassified to income statement in
subsequent periods:
Increase / (Decrease) in unrealised

gains / (losses) reserve 4,930 (5,734) (30) 1,540
Decrease in foreign currency

translation reserve (1,105,852) (35,071) (260,273) (3,294)
─────── ─────── ────── ──────
Net other comprehensive loss to
be reclassified to income statement in (1,100,922) (40,805) (260,303) (1,754)
subsequent periods
─────── ─────── ────── ──────
Other comprehensive (loss) / income not to be

reclassified to income statement
in subsequent periods:
(Decrease) / increase in unrealised

gains / (losses) reserve (17,313) (181,503) (182,857) 201,969
Realised gain on fair value movement through

other comprehensive income 5,559 10,019 10,030 10,019
─────── ─────── ────── ──────
Net other comprehensive income / (loss) not
to be reclassified to income statement (11,754) (171,484) (172,827) 211,988
in subsequent periods
─────── ─────── ────── ──────
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD 3,994,266 2,377,591 2,019,871 1,600,638
═══════ ═══════ ═══════ ═══════
ATTRIBUTABLE TO:
Owners of the Parent 3,320,645 1,358,197 1,663,338 1,121,718

Non-controlling interests 673,621 1,019,394 356,533 478,920
─────── ─────── ─────── ───────
3,994,266 2,377,591 2,019,871 1,600,638
═══════ ═══════ ═══════ ═══════
* Certain amounts shown here do not correspond to the interim condensed consolidated financial statements of prior
period and reflect adjustments made as detailed in Note 2.2.
4
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(US $1.00 = AED 3.673)

Attributable to the owners of the Company
_________________________________________________________
Employees’
performance Non-
Share share Retained controlling Total
capital program Reserves earnings Total interests equity
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
Balance as at 1 January 2022 8,179,739 (1,684) 20,046,605 33,468,571 61,693,231 6,502,273 68,195,504
Effect of changes due to restatements (Note 2.2) - - - 21,406 21,406 (474,983) (453,577)
────── ────── ─────── ─────── ─────── ────── ───────
Balance at 1 January 2022 (Restated)* 8,179,739 (1,684) 20,046,605 33,489,977 61,714,637 6,027,290 67,741,927
Total comprehensive income for the period
Net profit for the period - - - 4,300,431 4,300,431 806,511 5,106,942
Other comprehensive income for the period - - (985,345) 5,559 (979,786) (132,890) (1,112,676)
────── ───── ────── ────── ────── ────── ──────
Total comprehensive income for the period - - (985,345) 4,305,990 3,320,645 673,621 3,994,266
Directors’ remuneration (note 21) - - - (9,199) (9,199) - (9,199)
Dividend paid to shareholders (note 20) - - - (1,226,961) (1,226,961) - (1,226,961)
Dividend and directors’ bonus of subsidiaries - - - (6,388) (6,388) (470,780) (477,168)
Other movement - - - (46,118) (46,118) - (46,118)
────── ───── ────── ─────── ────── ────── ──────

Balance as at 30 June 2022 (Unaudited) 8,179,739 (1,684) 19,061,260 36,507,301 63,746,616 6,230,131 69,976,747
══════ ═════ ══════ ═══════ ══════ ══════ ══════
* Certain amounts shown here do not correspond to the 2021 consolidated financial statements and reflect adjustments made as detailed in Note 2.2.
6
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
(US $1.00 = AED 3.673)

Attributable to the owners of the Company
___________________________________________________________
Employees’
performance Non-
Share share Retained controlling Total
capital program Reserves earnings Total interests equity
Balance as at 1 January 2021 7,159,739 (1,684) 17,540,597 30,819,098 55,517,750 9,064,152 64,581,902
Effect of changes due to restatements (Note 2.2) - - - 20,855 20,855 (435,919) (415,064)
────── ────── ─────── ─────── ─────── ────── ───────
Balance at 1 January 2021 (Restated)* 7,159,739 (1,684) 17,540,597 30,839,953 55,538,605 8,628,233 64,166,838
Total comprehensive income for the period
Net profit for the period (Restated) - - - 1,560,545 1,560,545 1,029,335 2,589,880
Other comprehensive income for the period - - (212,367) 10,019 (202,348) (9,941) (212,289)
────── ───── ────── ────── ────── ────── ──────
Total comprehensive income for the period - - (212,367) 1,570,564 1,358,197 1,019,394 2,377,591
Directors’ remuneration (note 21) - - - (9,329) (9,329) - (9,329)
Dividend paid to shareholders (note 20) - - - (715,974) (715,974) - (715,974)
Dividend and directors’ bonus of subsidiaries - - - (6,864) (6,864) (811,461) (818,325)
Other movement - - - (27,101) (27,101) - (27,101)
────── ───── ────── ─────── ────── ────── ──────

Balance as at 30 June 2021 (Unaudited) 7,159,739 (1,684) 17,328,230 31,651,249 56,137,534 8,836,166 64,973,700
══════ ═════ ══════ ═══════ ══════ ══════ ══════
* Certain amounts shown here do not correspond to the 2021 consolidated financial statements and reflect adjustments made as detailed in Note 2.2.
7
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
As at 30 June 2022 (Unaudited)
(US $1.00 = AED 3.673)
For the six-month period ended
────────────────────
30 June 30 June
2022 2021
Notes AED’000 AED’000
(Restated)*
Cash flows from operating activities
Profit before tax 5,235,177 2,707,894
Adjustments for:
Share of results of associates and joint ventures (167,909) 5,904
Depreciation 703,194 660,547
Amortisation of intangible assets 4,270 5,146
Provision for end-of-service benefits, net 11,398 7,003
Gain on disposal of investment properties - (51,047)
Loss / (gain) on disposal of property, plant and equipment 990 (76)
(Reversal) / provision for receivables and write down (49,415) 400,404
Finance costs 7(b) 481,283 489,587
Finance income 7(a) (313,065) (180,191)
Gain on restructuring of an associate (233,406) -
─────── ───────
Cash from operations before working capital changes 5,672,517 4,045,171
Working capital changes:
Trade and unbilled receivables (1,218,169) (2,667,007)
Other assets, receivables, deposits and prepayments (861,865) 674,427
Development properties 3,397,679 722,287
Advances from customers 1,751,152 1,632,960
Trade and other payables (1,229,336) 372,450
Retentions payable (56,150) (47,987)
Income tax, net (129,425) 19,062
─────── ───────
Net cash flows from operating activities 7,326,403 4,751,363
─────── ───────
Cash flows from investing activities
Purchase of securities (1,147,307) (2,663,056)
Proceeds from disposal of securities 1,712,369 2,209,927
Finance income received 313,075 177,843
Dividend received from associates and joint ventures 57,500 49,479
Repayment of / (additional) investments in and loans to associates and joint ventures (3,938) 1,122
Amounts incurred on investment properties (172,152) (455,593)
Proceeds from disposal of investment properties - 58,593
Amounts incurred on property, plant and equipment (381,423) (558,609)
Proceeds from disposal of property, plant and equipment 12,520 647
Deposits maturing after three months (including deposits under lien) 8 (266,496) (70,390)
Advance against investments (151,925) (131,640)
─────── ───────
Net cash flows used in investing activities (27,777) (1,381,677)
─────── ───────
Cash flows from financing activities
Dividends paid (including dividends of subsidiaries) (1,696,961) (1,525,974)
Proceeds from interest-bearing loans and borrowings 16 5,159,413 1,773,502
Repayment of interest-bearing loans and borrowings 16 (5,503,097) (2,145,764)
Directors’ bonus paid (including directors’ bonus of subsidiaries) (16,367) (17,654)
Payment of lease liabilities (155,682) (65,110)
Finance costs paid (482,689) (467,563)
─────── ───────
Net cash flows used in financing activities (2,695,383) (2,448,563)
─────── ───────
Increase in cash and cash equivalents 4,603,243 921,123
Net foreign exchange difference (167,020) (830)
Cash and cash equivalents at the beginning of the period 7,463,883 5,703,799
─────── ───────
Cash and cash equivalents at the end of the period 8 11,900,106 6,624,092
═══════ ═══════
* Certain amounts shown here do not correspond to interim condensed consolidated financial statements of prior
period and reflect adjustments made as detailed in Note 2.2.
8
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1 DOMICILE AND ACTIVITIES

Emaar Properties Public Joint Stock Company (the “Company”) was established as a public joint stock company by
Ministerial Decree number 66 in the year 1997. The Company was established on 23 June 1997 and commenced
operations on 29 July 1997. The Company and its subsidiaries constitute the Group (the “Group”). The Company’s
registered office is at P.O. Box 9440, Dubai, United Arab Emirates (“UAE”). The shares of the Company are traded on
the Dubai Financial Market.
The principal activities of the Group are property investment, development and development management, shopping
malls and retail, hospitality, property management and utility services and investments in providers of financial services.
The interim condensed consolidated financial statements were authorised for issue on 12 August 2022.
2.1 BASIS OF PREPARATION
The interim condensed consolidated financial statements of the Group are prepared in accordance with International
Accounting Standard 34: Interim Financial Reporting and applicable requirements of the United Arab Emirates laws.
The interim condensed consolidated financial statements do not contain all information and disclosures required for full
financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and should be read
in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2021. The
same accounting policies, methods of computation, significant accounting judgments and estimates and assumptions are
followed in these interim condensed consolidated financial statements as compared with the most recent annual
consolidated financial statements, except for the new standards and amendments adopted during the current period and
restatement as explained below.
The interim condensed consolidated financial statements have been prepared in United Arab Emirates Dirhams (AED),
which is the Company’s functional and presentation currency, and all values are rounded to the nearest thousand except
where otherwise indicated. Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency.
The interim condensed consolidated financial statements have been prepared on a historical cost basis except for
financial assets at fair value through other comprehensive income (“FVOCI”) and profit or loss that have been measured
at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
Certain comparative amounts have been reclassified / restated to conform to the presentation used in these interim
condensed consolidated financial statements. Also refer note 2.2.
On 20 September 2021, the UAE Federal Decree Law No. (32) of 2021 was issued and came into effect on 2 January
2022 which repealed the UAE Federal Law No. (2) of 2015. Companies have (1) one year from 2 January 2022 to
comply with the provisions of the UAE Federal Decree Law No. (32) of 2021. The Company’s annual general assembly
approved in its last meeting held on 20 April 2022 the amendments to its Articles of Association, in order to be fully
compliant with the UAE Federal Decree Law No. (32) of 2021, and published the amendments in the Official Gazette.
Results for the six-month period ended 30 June 2022 are not necessarily indicative of the results that may be expected
for the financial year ending 31 December 2022.
Basis of consolidation
The interim condensed consolidated financial statements comprise the financial statements of the Company and entities
(including special purpose entities) controlled by the Group. Control is achieved where all the following criteria are met:
(a) the Group has power over an entity (i.e., existing rights that give it the current ability to direct the relevant
activities of the investee);
(b) the Group has exposure, or rights, to variable returns from its involvement with the entity; and
(c) the Group has the ability to use its power over the entity to affect the amount of the Company’s returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
- The contractual arrangement with the other vote holders of the investee
- Rights arising from other contractual arrangements
- The Group’s voting rights and potential voting rights
9
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
2.1 BASIS OF PREPARATION (continued)
Basis of consolidation (continued)
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over
the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the year are included in the interim condensed consolidated financial statements
from the date the Group gains control until the date the Group ceases to control the subsidiary.
Subsidiaries
Subsidiaries are fully consolidated from the date of acquisition or incorporation, being the date on which the Group
obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the
subsidiaries are prepared using consistent accounting policies. All intra-group balances, transactions, unrealised gains
and losses resulting from intra-group transactions and dividends are eliminated in full.
Non-controlling interests (NCI) are measured initially at their proportionate share of the acquiree’s identifiable net assets
at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions.
Share of comprehensive income/loss within a subsidiary is attributed to the non-controlling interest even if that results in
a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If
the Group losses control over a subsidiary, it:
- Derecognises the assets (including goodwill) and liabilities of the subsidiary;
- Derecognises the carrying amount of any non-controlling interest;
- Derecognises the cumulative translation differences, recorded in equity;
- Recognises the fair value of the consideration received;
- Recognises the fair value of any investment retained;
- Recognises any surplus or deficit in the interim condensed consolidated income statement; and
- Reclassifies the Group’s share of components previously recognised in other comprehensive income to the interim
condensed consolidated income statement or retained earnings, as appropriate.
Associates and joint ventures
Associates are companies in which the Group has significant influence, but not control, over the financial and operating
policies. Joint ventures are those entities over whose activities the Group has joint control, established by contractual
agreement and requiring unanimous consent for strategic financial and operating decisions whereby the Group has rights
to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
The Group’s investment in associates and joint ventures are accounted for using the equity method of accounting. Under
the equity method of accounting, investments in associates and joint ventures are carried in the interim condensed
consolidated statement of financial position at cost, plus post-acquisition changes in the Group’s share of net assets of the
associated and joint venture companies, less any impairment in value.
The interim condensed consolidated income statement reflects the Group’s share of results of its associates and joint
ventures. Unrealised profits and losses resulting from transactions between the Group and associates and its joint ventures
are eliminated to the extent of the Group’s interest in the associates and joint ventures. Unrealised losses are eliminated
in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Special purpose entities
Special purpose entities are entities that are created to accomplish a narrow and well-defined objective. The financial
information of special purpose entities is included in the Group’s interim condensed consolidated financial statements
where the substance of the relationship is that the Group controls the special purpose entity and hence, they are accounted
for as subsidiaries.
2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of these interim condensed consolidated financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures and the disclosure of contingent liabilities at the reporting date. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the assets
or liabilities affected in future periods.
10
2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)
Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised.
The key judgments and estimates and assumptions that have a significant impact on the interim condensed consolidated
financial statements of the Group are discussed below:
Judgments
Timing of satisfaction of performance obligations

The Group is required to assess each of its contracts with customers to determine whether performance obligations are
satisfied over time or at a point in time in order to determine the appropriate method of recognising revenue. The Group
has assessed that based on the sale and purchase agreements entered into with customers and the provisions of relevant
laws and regulations, where contracts are entered into to provide real estate assets to customer, the Group does not create
an asset with an alternative use to the Group and usually has an enforceable right to payment for performance completed
to date. In these circumstances the Group recognises revenue over time. Where this is not the case revenue is recognised
at a point in time.
Determination of transaction prices

The Group is required to determine the transaction price in respect of each of its contracts with customers. In making
such judgment the Group assess the impact of any variable consideration in the contract, due to discounts or penalties,
the existence of any significant financing component in the contract and any non-cash consideration in the contract.
In determining the impact of variable consideration, the Group uses the “most-likely amount” method in IFRS 15 Revenue
from Contracts with Customers whereby the transaction price is determined by reference to the single most likely amount
in a range of possible consideration amounts.
Transfer of control in contracts with customers

In cases where the Group determines that performance obligations are satisfied at a point in time, revenue is recognised
when control over the asset that is the subject of the contract is transferred to the customer. In the case of contracts to sell
real estate assets this is generally when the consideration for the unit has been substantially received and there are no
impediments in the handing over of the unit to the customer.
Transfer of real estate assets from property, plant and equipment to development properties
The Group sells real estate assets in its ordinary course of business. When the real estate assets which were previously
classified as property, plant and equipment are identified for sale in the ordinary course of business, then the assets are
transferred to development properties at their carrying value at the date of identification. Sale proceeds from such assets
are recognised as revenue in accordance with IFRS 15.
Revenue recognition for turnover rent

The Group recognises income from turnover rent on the basis of audited turnover reports submitted by the tenants. In the
absence of audited reports, management makes its own assessment about the tenants achieving or exceeding the stipulated
turnover in the lease contracts based on their historical performance.
Classification of investment properties

The Group determines whether a property qualifies as investment property in accordance with IAS 40 Investment
Property. In making its judgment, the Group considers whether the property generates cash flows largely independently
of the other assets held by the Group. The Group has determined that hotels and serviced apartment buildings owned by
the Group are to be classified as part of property, plant and equipment rather than investment properties since the Group
also operates these assets.
Operating lease commitments - Group as lessor

The Group has entered into commercial and retail property leases on its investment property portfolio. The Group has
determined, based on an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks
and rewards of ownership of these properties and so accounts for the contracts as operating leases.
11
Judgments (continued)
Classification of investments
Management designates at the time of acquisition of securities whether these should be classified as at fair value or
amortised cost. In judging whether investments in securities are classified as at fair value or amortised cost, management
has considered the detailed criteria for determination of such classification as set out in IFRS 9 Financial Instruments.
Significant judgement in determining the lease term of contracts with renewal options
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised.
The Group has the option, under some of its leases to lease the assets for additional years. The Group applies judgement
in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that
create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease
term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise
(or not to exercise) the option to renew.
Valuation of investment properties

The Group appoints external professionally qualified valuers on an annual basis to obtain estimates of the market value
of investment properties, using recognised valuation techniques for the purposes of impairment review and disclosures in
the interim condensed consolidated financial statements. These key estimates are assessed for appropriateness at each
reporting period by the management.
Consolidation of subsidiaries
The Group has evaluated all the investee entities including special purpose entities to determine whether it controls the
investee as per the criteria laid out by IFRS 10: Consolidated Financial Statements. The Group has evaluated, amongst
other things, its ownership interest, the contractual arrangements in place and its ability and the extent of its involvement
with the relevant activities of the investee entities to determine whether it controls the investee.
Retrospective change in classification of investment

During the current period, based on review of contractual terms and arrangement with the other shareholder, management
has re-evaluated its assessment on control over an entity, previously classified as a subsidiary and concluded that both
the shareholders have joint control over the relevant business activities. Accordingly, it had retrospectively applied the
equity method of accounting in accordance with IAS 28 Investments in Associates and Joint Ventures.
Based on the requirements of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, management has
considered the effect of this change retrospectively and restated comparative financial information. The interim condensed
consolidated financial statements have been restated as summarised below:
At 31 December 2021
Consolidated Statement of Financial Position
As previously As
reported Adjustments restated
earlier made now
AED’000 AED’000 AED’000
Assets
Bank balances and cash 8,657,529 (118,671) 8,538,858
Trade and unbilled receivables 16,633,888 (47,832) 16,586,056
Other assets, receivables, deposits and prepayments 14,188,035 (30,506) 14,157,529
Development properties 37,740,746 (51,450) 37,689,296
Loans to associates and joint ventures 1,102,196 5,514 1,107,710
Investments in associates and joint ventures 5,074,649 474,983 5,549,632
Property, plant and equipment 10,625,210 (1,468,013) 9,157,197
Total assets 121,849,528 (1,235,975) 120,613,553
════════ ════════ ════════
12
Retrospective change in classification of investment (continued)
At 31 December 2021
Consolidated Statement of Financial Position (continued)
As previously As
earlier made now
AED’000 AED’000 AED’000
Liabilities
Trade and other payables 18,572,086 (50,711) 18,521,375
Advances from customers 13,791,499 (7,993) 13,783,506
Retentions payable 1,497,121 (11,705) 1,485,416
Interest-bearing loans and borrowings 9,416,883 (708,124) 8,708,759
Provision for employees’ end-of-service benefits 177,561 (3,865) 173,696
Total liabilities 53,654,024 (782,398) 52,871,626
─────── ────── ───────
Equity
Retained earnings 33,468,571 21,406 33,489,977
Non-controlling interests 6,502,273 (474,983) 6,027,290
══════ ══════ ══════
At 1 January 2021
Consolidated Statement of Financial Position
As previously As
earlier made now
AED’000 AED’000 AED’000
Assets
Bank balances and cash 6,270,731 (60,189) 6,210,542
Trade and unbilled receivables 11,246,564 (97,788) 11,148,776
Other assets, receivables, deposits and prepayments 16,029,719 (44,144) 15,985,575
Development properties 40,932,919 (88,516) 40,844,403
Loans to associates and joint ventures 1,096,631 12,599 1,109,230
Investments in associates and joint ventures 4,854,060 435,919 5,289,979
Property, plant and equipment 10,278,470 (1,493,289) 8,785,181
Total assets 117,976,596 (1,335,408) 116,641,188
════════ ═══════ ═══════
Liabilities
Trade and other payables 17,426,706 (72,030) 17,354,676
Advances from customers 11,689,423 (8,640) 11,680,783
Retentions payable 1,647,548 (33,695) 1,613,853
Interest-bearing loans and borrowings 14,034,948 (802,791) 13,232,157
Provision for employees’ end-of-service benefits 167,211 (3,188) 164,023
Total liabilities 53,394,694 (920,344) 52,474,350
──────── ────── ───────
Equity
Retained earnings 30,819,098 20,855 30,839,953
════════ ══════ ══════
13
Consolidated income statement and consolidated statement of comprehensive income
As previously As
earlier made now
AED’000 AED’000 AED’000
For the Six-month period ended 30 June 2021:
Revenue 12,499,526 (139,545) 12,359,981
Cost of revenue (7,082,532) 98,333 (6,984,199)
Selling, general and administrative expenses (1,997,217) 4,537 (1,992,680)
Depreciation of property, plant and equipment (317,694) 21,966 (295,728)
Other income 122,137 1,365 123,502
Finance income 180,268 (77) 180,191
Finance costs (497,133) 7,546 (489,587)
Share of results of associates and joint ventures (8,860) 2,956 (5,904)
════════ ════════ ════════
Net profit for the period 2,592,418 (2,538) 2,589,880
════════ ════════ ════════
ATTRIBUTABLE TO:
Owners of the Company 1,560,126 419 1,560,545
════════ ════════ ════════
Total comprehensive income for the period 2,380,129 (2,538) 2,377,591
════════ ════════ ════════
ATTRIBUTABLE TO:
════════ ════════ ════════
As previously As
earlier made now
AED’000 AED’000 AED’000
For the three-month period ended 30 June 2021:
Revenue 6,506,218 (66,760) 6,439,458
Cost of revenue (3,769,417) 47,110 (3,722,307)
Selling, general and administrative expenses (1,002,772) 1,872 (1,000,900)
Depreciation of property, plant and equipment (160,936) 10,486 (150,450)
Other income 13,400 503 13,903
Finance income 95,397 (33) 95,364
Finance costs (260,860) 3,727 (257,133)
Share of results of associates and joint ventures 93,387 1,397 94,784
════════ ════════ ════════
Net profit for the period 1,391,721 (1,317) 1,390,404
════════ ════════ ════════
ATTRIBUTABLE TO:
Owners of the Company 903,604 81 903,685
Non-controlling interests 488,117 (1,398) 486,719
════════ ════════ ════════
Total comprehensive income for the period 1,601,955 (1,317) 1,600,638
════════ ════════ ════════
14
For the three-month period ended 30 June 2021 (continued):
As previously As
earlier made now
AED’000 AED’000 AED’000
ATTRIBUTABLE TO:
Non-controlling interests 480,318 (1,398) 478,920
════════ ════════ ════════
Consolidated Statement of Cash flow

For the Six-month period ended 30 June 2021:
Cash flows from operating activities 4,750,464 899 4,751,363
Cash flows used in investing activities (1,389,018) 7,341 (1,381,677)
Cash flows used in financing activities (2,406,823) (41,740) (2,448,563)
════════ ════════ ════════
Estimations and assumptions
Impairment of trade, unbilled receivables and other receivables
An estimate of the collectible amount of trade and other receivables is made when collection of the full amount is no
longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which
are not individually significant, but which are past due, are assessed collectively and a provision applied based on expected
credit losses on such receivables.
Useful lives of property, plant and equipment, investment properties and intangible assets
The Group’s management determines the estimated useful lives of its property, plant and equipment, investment
properties and intangible assets for calculating depreciation. This estimate is determined after considering the expected
usage of the asset or physical wear and tear. The management periodically reviews estimated useful lives and the
depreciation / amortisation method to ensure that the method and period of depreciation / amortisation are consistent with
the expected pattern of economic benefits from these assets.
Measurement of progress when revenue is recognised over time
The Group has elected to apply the input method to measure the progress of performance obligations where revenue is
recognised over time. The Group considers that the use of the input method which requires revenue recognition on the
basis of the Group’s efforts to the satisfaction of the performance obligation provides the best reference of revenue
actually earned. In applying the input method, the Group estimates the cost to complete the projects in order to determine
the amount of revenue to be recognised.
Cost to complete the projects

The Group estimates the cost to complete the projects in order to determine the cost attributable to revenue being
recognised. These estimates include the cost of providing infrastructure, potential claims by contractors as evaluated by
the project consultant and the cost of meeting other contractual obligations to the customers.
Taxes
The Group is subject to income and capital gains taxes in certain jurisdictions. Significant judgment is required to
determine the total provision for current and deferred taxes. The Group established provisions, based on reasonable
estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The
amount of such provision is based on various factors, such as experience of previous tax audits and differing
interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretations
may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the Group
companies.
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available
against which the losses can be utilised. Significant management judgement is required to determine the amount of
15
deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.

Estimations and assumptions (continued)
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and volatility.
Impairment of non-financial assets
The Group assesses whether there are any indicators of impairment for all non-financial assets at each reporting date. The
non-financial assets are tested for impairment when there are indicators that the carrying amounts may not be recoverable.
When value in use calculations are undertaken, management estimates the expected future cash flows from the asset or
cash-generating unit and chooses a suitable discount rate in order to calculate the present value of those cash flows.
Development properties are stated at the lower of cost and estimated net realisable value. The cost of work-in-progress
comprises construction costs and other related direct costs. Net realisable value is the estimated selling price in the
ordinary course of business, less cost of completion and selling expenses.
Impact of Covid-19
In January 2020, the World Health Organization (“WHO”) announced a global health emergency because of coronavirus
(the “COVID-19 Outbreak”). During March 2020, the WHO classified COVID-19 Outbreak as a pandemic based on the
rapid increase in exposure and infections across the world. The pandemic nature of this virus had resulted in global travel
restrictions and lockdown in most countries of the world impacting jurisdictions and segments in which the Group
operates.
Compared to 2020 wherein the COVID-19 Outbreak had impacted adversely, during 2021 and in the current reporting
period, there has been a significant improvement in operating results of the Group across key segments and geographies
of the Group as the impact of pandemic started to ease in geographies where the Group operates. Although the global
economic situation with relation to COVID-19 remains fluid and will be determined by factors that continue to evolve,
such as resurgence of variants, success of support measures introduced by governments and the effectiveness of public
policies intended to contain the spread. The Group’s management continues to evaluate the situation including pricing
strategy and its various cost optimization initiatives.
As per Group’s current assessment, the impact of the COVID-19 during the current period on the value of development
properties, investment properties, and property, plant and equipment and the ability of these assets to generate income,
either from sale, operation or leasing is limited. The Group’s assessment considers the level of pandemic related economic
impact, actual and expected recovery including occupancy and earning levels of properties. This will be periodically
revisited and revised, for any adverse impact.
External valuers report to assess impairment on non-financial assets and net realizable value of development properties
As at 31 December 2021 valuations performed by certain external valuers continued to state a clause over material
valuation uncertainty due to the market disruption caused by the COVID-19 pandemic, which is consistent with the
guidance issued by RICS Valuation Global Standards. Consequently, as a result, less certainty and a higher degree of
caution should be attached to valuations performed by external valuers. Albeit, this clause does not invalidate the
valuation nor does it indicate that the valuation cannot be relied upon, but implies that there is substantially more
uncertainty than under normal market conditions. The valuation of properties located in various geographies takes into
account the level of pandemic, related economic impact, expected recovery including occupancy and earning levels of
properties. As a result of the continued uncertainty, these assumptions may be revised significantly in the subsequent
periods.
16
2.3 CHANGES IN THE ACCOUNTING POLICIES AND DISCLOSURES
(a) New standards, interpretations and amendments in issue and effective
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are
consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year
ended 31 December 2021, except for the adoption of new standards and interpretations effective as of 1 January 2022
Although these new standards and amendments apply for the first time in 2022, they do not have a material impact on the
interim condensed consolidated financial statements of the Group or the annual consolidated financial statements of the
Group. The new standards, interpretations and amendments in issue and effective are mentioned below:
New standards or amendments Effective date

Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) 1 January 2022
Annual Improvements to IFRS Standards 2018–2020 1 January 2022
Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) 1 January 2022
Reference to the Conceptual Framework (Amendments to IFRS 3) 1 January 2022
(b) Standards, amendments and interpretations in issue but not effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the
Group’s interim condensed consolidated financial statements are disclosed below.
New standards or amendments Effective date

Classification of Liabilities as Current or Noncurrent – Amendments to IAS 1 1 January 2023
IFRS 17 Insurance Contracts 1 January 2023
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 1 January 2023
Definition of Accounting Estimate – Amendments to IAS 8 1 January 2023
IFRS 10 and IAS 28 - Sale or Contribution of Assets between an investor and its Associate or Joint Effective date
Venture deferred
indefinitely
Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single 1 January 2023
Transaction
The Group does not expect the adoption of the above new standards, amendments and interpretations to have a material
impact on the future consolidated financial statements of the Group.
17
2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue recognition
Revenue from contracts with customers

The Group recognises revenue from contracts with customers based on a five step model as set out in IFRS 15 Revenue
from contracts with customers:
Step 1. Identify the contract(s) with a customer: A contract is defined as an agreement between two or more parties that
creates enforceable rights and obligations and sets out the criteria for every contract that must be met.
Step 2. Identify the performance obligations in the contract: A performance obligation is a promise in a contract with a
customer to transfer a good or service to the customer.
Step 3. Determine the transaction price: The transaction price is the amount of consideration to which the Group expects
to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected
on behalf of third parties.
Step 4. Allocate the transaction price to the performance obligations in the contract: For a contract that has more than
one performance obligation, the Group will allocate the transaction price to each performance obligation in an
amount that depicts the amount of consideration to which the Group expects to be entitled in exchange for
satisfying each performance obligation.
Step 5. Recognise revenue when (or as) the entity satisfies a performance obligation.
The Group satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:
1. The customer simultaneously receives and consumes the benefits provided by the Group’s performance as the
Group performs; or
2. The Group’s performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or
3. The Group’s performance does not create an asset with an alternative use to the Group and the entity has an
enforceable right to payment for performance completed to date.
For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at
which the performance obligation is satisfied.
When the Group satisfies a performance obligation by delivering the promised goods or services it creates a contract asset
based on the amount of consideration earned by the performance. Where the amount of consideration received from a
customer exceeds the amount of revenue recognised this gives rise to a contract liability.
Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined
terms of payment and excluding taxes and duty. The Group assesses its revenue arrangements against specific criteria to
determine if it is acting as principal or agent. The Group has concluded that it is acting as a principal in all of its revenue
arrangements.
Revenue is recognised in the interim condensed consolidated income statement to the extent that it is probable that the
economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably.
Development services
Revenue from rendering of development management services is recognised when the outcome of the transaction can be
estimated reliably, by reference to the stage of completion of the development obligation at the reporting date. Where the
outcome cannot be measured reliably, revenue is recognised only to the extent that the expenses incurred are eligible to
be recovered.
Customer loyalty programme

The Group operates a loyalty points programme, ‘U by Emaar’, which allows customers to accumulate points when they
spend in any of the Group’s hotel or leisure units. The loyalty points give rise to a separate performance obligation as
they provide a material right to the customer. A portion of the transaction price is allocated to the loyalty points awarded
to customers based on relative stand-alone selling price and recognised as a contract liability until the points are redeemed.
Revenue is recognised upon redemption of products by the customer. When estimating the stand-alone selling price of
the loyalty points, the Group considers the likelihood that the customer will redeem the points. The Group updates its
estimates of the points that will be redeemed on a quarterly basis and any adjustments to the contract liability balance are
charged against revenue.
18
2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue recognition (continued)
Rental income from lease of investment property

Rental income arising from operating leases on investment properties is recognised, net of discount, in accordance with
the terms of lease contracts over the lease term on a straight-line basis, except where an alternative basis is more
representative of the pattern of benefits to be derived from the leased asset.
Revenue recognition for turnover rent

Income from turnover rent is recognised based on the audited turnover reports submitted by the tenants. In the absence
of audited reports, management makes its own assessment about the tenants achieving or exceeding the stipulated turnover
in the lease contracts based on their historical performance.
Interest income
Interest income is recognised as the interest accrues using the effective interest method, under which the rate used exactly
discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of
the financial asset.
Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly
probable that they will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to
sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities
on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit
assets or investment property , which continue to be measured in accordance with the Group’s other accounting policies.
Impairment losses on initial classification as held for sale or held-for distribution and subsequent gains and losses on
remeasurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or
depreciated and any equity-accounted investee is no longer equity accounted.
Property, plant and equipment
Property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated
depreciation and any impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful
lives as follows:
Leasehold improvements 2 - 15 years

Sales centers (included in land and buildings) 1 - 10 years
Buildings 10 - 45 years
Computers and office equipment 2 - 5 years
Plant, machinery and heavy equipment 3 - 20 years
Motor vehicles 3 - 5 years
Furniture and fixtures 2 - 10 years
Leisure, entertainment and other assets 2 - 25 years
No depreciation is charged on land and capital work-in-progress. The useful lives, depreciation method and residual
values are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected
pattern of economic benefits from these assets.
Expenditure incurred to replace a component of an item of property, plant and equipment that is accounted for separately
is capitalised and the carrying amount of the component that is replaced is written off. Other subsequent expenditure is
capitalised only when it increases future economic benefits of the related item of property, plant and equipment. All other
expenditure is recognised in the interim condensed consolidated income statement as the expense is incurred.
19
Property, plant and equipment (continued)
Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount of property, plant and equipment may not be recoverable. Whenever the carrying amount of property,
plant and equipment exceeds their recoverable amount, an impairment loss is recognised in the interim condensed
consolidated income statement. The recoverable amount is the higher of fair value less costs to sell of property, plant and
equipment and the value in use. The fair value less costs to sell is the amount obtainable from the sale of property, plant
and equipment in an arm’s length transaction while value in use is the present value of estimated future cash flows
expected to arise from the continuing use of property, plant and equipment and from its disposal at the end of its useful
life.
Reversal of impairment losses other than goodwill impairment recognised in the prior years are recorded when there is
an indication that the impairment losses recognised for the property, plant and equipment no longer exist or have reduced.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any
lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the
lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated
useful life and the lease term. Right-of-use assets are subject to impairment.
Investment properties
Properties held for rental or capital appreciation purposes are classified as investment properties. Investment properties
are measured at cost less any accumulated depreciation and any accumulated impairment losses.
Depreciation is charged on a straight-line basis over the estimated useful lives as follows:
Buildings 10 - 45 years
Furniture, fixtures and others 4 - 10 years
Plant and equipment 3 - 10 years
No depreciation is charged on land and capital work-in-progress.
The useful lives, depreciation method and residual value method are reviewed periodically to ensure that the method and
period of depreciation are consistent with the expected pattern of economic benefits from these assets.
Properties are transferred from investment properties to development properties when and only when, there is a change
in use, evidenced by commencement of development with a view to sell. Such transfers are made at the carrying value of
the properties at the date of transfer.
The Group determines at each reporting date whether there is any objective evidence that the investment properties are
impaired. Whenever the carrying amount of an investment property exceeds their recoverable amount, an impairment
loss is recognised in the interim condensed consolidated income statement. The recoverable amount is the higher of
investment property’s fair value less cost to sell and the value in use.
Reversal of impairment losses recognised in the prior years is recorded when there is an indication that the impairment
losses recognised for the investment property no longer exist or have reduced.
20
Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in
a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation and accumulated impairment losses. Subsequent expenditure is
capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. The
useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the estimated useful life and assessed for impairment whenever there
is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an
intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected
useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to
modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite lives is recognised in the interim condensed consolidated income
statement.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually
or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the
indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective
basis.
Amortisation is charged on a straight-line basis over the estimated useful lives as follows:
Customers relationship 5 years

Software 3 years
Goodwill and Brand is not amortised.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the interim condensed consolidated income statement
when the asset is derecognised.
Development properties
Properties acquired, constructed or in the course of construction for sale in the ordinary course of business are classified
as development properties and are stated at the lower of cost or net realisable value. Cost includes:
• Freehold and leasehold rights for land;

• Amounts paid to contractors for construction; and
• Borrowing costs, planning and design costs, costs of site preparation, professional fees for legal services, property
transfer taxes, construction overheads and other related costs.
Net realisable value is the estimated selling price in the ordinary course of the business, based on market prices at the
reporting date and discounted for the time value of money if material, less costs to completion and the estimated costs of
sale.
The cost of development properties recognised in the interim condensed consolidated income statement on sale is
determined with reference to the specific costs incurred on the property sold and an allocation of any non-specific costs
based on the relative size of the property sold.
The management reviews the carrying values of the development properties on an annual basis.
Inventories
Inventories represent consumables and other goods relating to hospitality and retail business segments of the Group.
Inventories are stated at the lower of cost and net realisable value with due allowance for any obsolete or slow-moving
items.
Costs are those expenses incurred in bringing each product to its present location and condition on a weighted average
cost basis. Net realisable value is based on estimated selling price less any further costs expected to be incurred on disposal
or completion.
21
Derivative financial instruments
The Group enters into derivative financial instruments to manage its exposure to interest rate risk and foreign exchange
rate risk, including foreign exchange forward contracts. Derivatives are initially recognised at fair value at the date the
derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting date.
The resulting gain or loss is recognised in the interim condensed consolidated income statement immediately, unless the
derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the interim
condensed consolidated income statement depends on the nature of the hedge relationship. The Group designates
derivatives as hedges of interest rate risk and foreign currency risk of firm commitments (cash flow hedges).
A derivative with a positive fair value is recognised as a financial asset; a derivative with a negative fair value is
recognised as a financial liability.
Hedge accounting
The Group designates certain hedging instruments as either fair value hedges or cash flow hedges. Hedges of interest rate
risk and foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge
relationship, the Group documents the relationship between the hedging instrument and the hedged item, along with its
risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of
the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting
changes in fair values or cash flows of the hedged item.
The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged
and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements (including
the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
• There is ‘an economic relationship’ between the hedged item and the hedging instrument;
• The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship;
• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that
the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that
quantity of hedged item. However, that designation shall not reflect an imbalance between the weightings of the
hedged item and the hedging instrument that would create hedge ineffectiveness (irrespective of whether
recognised or not) that could result in an accounting outcome that would be inconsistent with the purpose of hedge
accounting.
Hedges that meet all the qualifying criteria for hedge accounting are accounted for and further described in the below
sections.
Fair value hedges

The change in the fair value of a hedging instrument is recognised in the interim condensed consolidated income statement
as other expense. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the
carrying value of the hedged item and is also recognised in the interim condensed consolidated income statement as other
expense.
For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is amortised through
profit or loss over the remaining term of the hedge using the effective interest rate (EIR) method. The EIR amortisation
may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in
its fair value attributable to the risk being hedged.
If the hedged item is derecognised, the unamortised fair value is recognised immediately in consolidated income
statement.
When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair
value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding
gain or loss recognised in consolidated income statement.
22
Derivative financial instruments (continued)
Hedge accounting (continued)
Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in consolidated statement of
comprehensive income in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the
interim condensed consolidated income statement. The cash flow hedge reserve is adjusted to the lower of the cumulative
gain or loss on the hedging instrument and the cumulative change in fair value of the hedged item.
The ineffective portion relating to foreign currency contracts is recognised as other expense and the ineffective portion
relating to commodity contracts is recognised in other operating income or expenses.
The Group designates only the spot element of forward contracts as a hedging instrument. The forward element is
recognised in consolidated statement of comprehensive income and accumulated in a separate component of equity under
cost of hedging reserve.
The amounts accumulated in consolidated statement of comprehensive income are accounted for, depending on the nature
of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial
item, the amount accumulated in equity is removed from the separate component of equity and included in the initial cost
or other carrying amount of the hedged asset or liability. This is not a reclassification adjustment and will not be
recognised in other comprehensive income for the period. This also applies where the hedged forecast transaction of a
non-financial asset or non-financial liability subsequently becomes a firm commitment for which fair value hedge
accounting is applied.
For any other cash flow hedges, the amount accumulated in consolidated statement of comprehensive income is
reclassified to consolidated income statement as a reclassification adjustment in the same period or periods during which
the hedged cash flows affect profit or loss.
If cash flow hedge accounting is discontinued, the amount that has been accumulated in consolidated statement of
comprehensive income must remain in accumulated OCI if the hedged future cash flows are still expected to occur.
Otherwise, the amount will be immediately reclassified to consolidated income statement as a reclassification adjustment.
After discontinuation, once the hedged cash flow occurs, any amount remaining in accumulated OCI must be accounted
for depending on the nature of the underlying transaction as described above.
Hedge of net investments in foreign operations
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of
the net investment, are accounted for in a way similar to cash flow hedges. Gains or losses on the hedging instrument
relating to the effective portion of the hedge are recognised as other comprehensive income while any gains or losses
relating to the ineffective portion are recognised in the interim condensed consolidated income statement. On disposal of
the foreign operation, the cumulative value of any such gains or losses recorded in equity is transferred to the interim
condensed consolidated income statement.
Financial assets
All financial assets are recognised and derecognised on trade date when the purchase or sale of a financial asset is made
under a contract whose terms require delivery of the financial asset within the timeframe established by the market
concerned. Financial assets are initially measured at cost, plus transaction costs, except for those financial assets classified
as at fair value through other comprehensive income or profit or loss, which are initially measured at fair value. Trade
receivables are initially recognised when they are originated. Trade and unbilled receivables that do not contain a
significant financing component or for which the Group has applied the practical expedient are measured at the transaction
price determined under IFRS 15. All recognised financial assets are subsequently measured in their entirety at either
amortised cost or fair value.
The fair value of financial instruments that are actively traded in organised financial markets is determined by reference
to quoted market bid prices for assets and offer prices for liabilities, at the close of business on the reporting date. If
quoted market prices are not available, reference can also be made to broker or dealer price quotations.
The fair value of floating rate and overnight deposits with credit institutions is their carrying value. The carrying value is
the cost of the deposit and accrued interest. The fair value of fixed interest-bearing deposits is estimated using
discounted cash flow techniques. Expected cash flows are discounted at current market rates for similar instruments at
the reporting date.
23
Financial assets (continued)
Classification of financial assets

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for managing them. In order for a financial asset to be classified and
measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of
principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is
performed at an instrument level.
For the purposes of classifying financial assets, an instrument is an ‘equity instrument’ if it is a non-derivative and meets
the definition of ‘equity’ for the issuer (under IAS 32: Financial Instruments: Presentation) except for certain non-
derivative puttable instruments presented as equity by the issuer. All other non-derivative financial assets are ‘debt
instruments’.
Equity investments
All financial assets that are equity investments are measured at fair value either through other comprehensive income or
through profit or loss. This is an irrevocable choice that the Group has made on adoption of IFRS 9 or will make on
subsequent acquisition of equity investments unless the equity investments are held for trading, in which case, they must
be measured at fair value through profit or loss. Gain or loss on disposal of equity investments is not recycled. Dividend
income for all equity investments is recorded through the interim condensed consolidated income statement when the
right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the
cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value
through P&L and OCI are not subject to impairment assessment.
The Group elected irrevocably to classify its non-listed equity investments as financial assets measured at fair value
through other comprehensive income.
Debt instruments
Debt instruments are also measured at fair value through other comprehensive income (OCI) unless they are classified at
amortised cost. They are classified at amortised cost only if:
• the asset is held within a business model whose objective is to hold the asset to collect the contractual cash flows;
and
• the contractual terms of the debt instrument give rise, on specified dates, to cash flows that are solely payments of
principal and interest on the principal outstanding.
Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash in hand, bank balances and
short-term deposits with an original maturity of three months or less, net of outstanding facilities payable on demand.
Trade and unbilled receivables

Trade receivables are stated at original invoice amount (unless there is a significant financing component)less expected
credit losses. When a trade receivable is uncollectible, it is written off against provision for doubtful debts. Subsequent
recoveries of amounts previously written off are credited to the interim condensed consolidated income statement.
Services rendered but not billed at the reporting date are accrued as per the terms of the agreements as unbilled receivables.
Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated
at the spot rate at the end of the reporting period. The foreign exchange component forms part of its fair value gain or
loss. For financial assets classified as at fair value through profit or loss, the foreign exchange component is recognised
in the interim condensed consolidated income statement. For financial assets designated at fair value through other
comprehensive income any foreign exchange component is recognised in the interim condensed consolidated statement
of comprehensive income. For foreign currency denominated debt instruments classified at amortised cost, the foreign
exchange gains and losses are determined based on the amortised cost of the asset and are recognised in the ‘other gains
and losses’ line item in the interim condensed consolidated income statement.
24
Financial assets (continued)
Derecognition of financial assets

A financial asset (or, when applicable, a part of a financial asset or part of a group of similar financial assets) is
derecognised when:
• The rights to receive cash flows from the asset have expired; or
• The Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full
without material delay to a third party under a ‘pass-through’ arrangement, and
• The Group has transferred its rights to receive cash flows from the asset and either:
- has transferred substantially all the risks and rewards of the asset, or
- has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
When the Group has transferred its right to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is
recognised to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the
maximum amount of consideration that the Group could be required to repay.
Impairment of financial assets

The Group recognises an allowance for expected credit losses ("ECL") for all debt instruments and contract assets not
held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is then discounted at
an approximation to the asset’s original effective interest rate.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the
next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit
risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure,
irrespective of the timing of the default (a lifetime ECL).
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and
when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s
historical experience and informed credit assessment, that includes forward-looking information.
For trade and unbilled receivables and other receivables, the Group applies a simplified approach in calculating ECLs
based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group’s
historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment. The expected credit losses are recognised in the interim condensed consolidated income statement.
The Group consider a financial asset to be in default when internal or external information indicates that the Group is
unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held
by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash
flows.
At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI
are credit impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the
estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
–– significant financial difficulty of the debtor;

–– a breach of contract such as a default or being more than 90 days past due;
–– the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise;
–– it is probable that the debtor will enter bankruptcy or other financial reorganisation; or
–– the disappearance of an active market for a security because of financial difficulties.
25
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that a non-financial asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's
recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) fair value
less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset
or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining
fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded entities or other available fair value indicators.
Impairment losses are recognised in the interim condensed consolidated income statement in those expense categories
consistent with the function of the impaired asset.
For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group
estimates the asset's or cash-generating unit's recoverable amount. A previously recognised impairment loss is reversed
only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last
impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no
impairment loss been recognised for the asset in prior years. Such reversal is recognised in the interim condensed
consolidated income statement.
Financial liabilities and equity instruments issued by the Group
Debt and equity instruments are classified as either financial liabilities or as equity instruments in accordance with the
substance of the contractual agreements. Financial liabilities within the scope of IFRS 9 are classified as financial
liabilities at fair value through profit or loss, loans and borrowings, or as derivative instrument as appropriate. The Group
determines the classification of its financial liabilities at the initial recognition.
Trade and other payables

Liabilities are recognised for amounts to be paid in the future for goods or services received, whether billed by the supplier
or not.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term
reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a
rate are recognised as expense in the period on which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date,
the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a
change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.
When measuring lease liabilities for leases that were classified as operating leases, the Group discounted lease payments
using its incremental borrowing rate. The average rate applied is 4% to 8%.
26
Financial liabilities and equity instruments issued by the Group (continued)
Loans and borrowings

Term loans are initially recognised at the fair value of the consideration received less directly attributable transaction
costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest rate method. Gains and losses are recognised in the interim condensed consolidated income statement
when the liabilities are derecognised as well as through the amortisation process.
Sukuk
The sukuk are stated at amortised cost using the effective profit rate method. Profit attributable to the sukuk is calculated
by applying the prevailing market profit rate, at the time of issue, for similar sukuk instruments and any difference with
the profit distributed is added to the carrying amount of the sukuk.
Other financial liabilities

Other financial liabilities are initially measured at fair value, net of transaction costs and are subsequently measured at
amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments through the expected life of the financial liability, or, where appropriate, a shorter period.
Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or
they expire. Where an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, then the difference in the respective carrying amounts
is recognised in the interim condensed consolidated income statement.
Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the interim condensed consolidated
statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred, measured at acquisition date fair value. For each business combination, the
acquirer measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the
acquiree’s identifiable net assets. Acquisition costs incurred are expensed.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions at fair value
on the date of acquisition. This includes the separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity
interest in the acquiree is remeasured to fair value as at the acquisition date through the interim condensed consolidated
income statement. Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the
acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or
liability will be recognised in accordance with IFRS 9: Financial Instruments in the interim condensed consolidated
statement of comprehensive income. If the contingent consideration is classified as equity, it shall not be remeasured until
it is finally settled within equity.
27
Business combinations and goodwill (continued)
Goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount
recognised for non-controlling interest over the fair value of net identifiable tangible and intangible assets acquired and
liabilities assumed. If the consideration is lower than the fair value of the net assets of the subsidiary acquired, the
difference is recognised in the interim condensed consolidated income statement. After initial recognition, goodwill is
measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a
business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected
to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those
units.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill
associated with the operation disposed of is included in the carrying amount of the operation when determining the gain
or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values
of the operation disposed of and the portion of the cash-generating unit retained.
Goodwill is tested for impairment annually as at the reporting date and when circumstances indicate that the carrying
value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of each cash-generating unit to which the
goodwill relates. When the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment
loss is recognised in the interim condensed consolidated income statement. Impairment losses relating to goodwill cannot
be reversed in future periods.
Fair value measurement
The Group measures financial instruments, such as investment in securities and hedges, at fair value at each reporting
date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or the most
advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.
For investments traded in an active market, fair value is determined by reference to quoted market bid prices.
The fair value of interest-bearing items is estimated based on discounted cash flows using interest rates for items with
similar terms and risk characteristics.
For unquoted equity investments, fair value is determined by reference to the market value of a similar investment or is
based on the expected discounted cash flows.
The fair value of forward foreign exchange contracts is calculated by reference to current forward exchange rates with
the same maturity.
Fair value of interest rate swap contract is determined by reference to market value for similar instruments.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the interim condensed consolidated financial
statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
28
Fair value measurement (continued)
• Level 1 – Fair value measurements are those derived from quoted prices in an active market (that are unadjusted) for
identical assets or liabilities.
• Level 2 – Fair value measurements are those derived from inputs other than quoted prices included within Level 1
that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
• Level 3 – Fair value measurements are those derived from valuation techniques that include inputs for the asset or
liability that are not based on observable market data (unobservable inputs).
For assets and liabilities that are recognised in the interim condensed consolidated financial statements on a recurring
basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing
categorisation at the end of each reporting period.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
3 SEGMENT INFORMATION
Management monitors the operating results of its business segments separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and
is measured consistently with operating profit or loss in the interim condensed consolidated financial statements.
Business segments
For management purposes, the Group is organised into three major segments, namely, real estate (develop and sell
condominiums, villas, commercial units and plots of land), leasing and related activities (develop, lease and manage
malls, retail, commercial and residential spaces) and hospitality (develop, own and/or manage hotels, serviced apartments
and leisure activities). Other segments include businesses that individually do not meet the criteria for a reportable
segment as per IFRS 8 Operating Segments. These businesses are property management and utility services and
investments in providers of financial services.
Revenue from sources other than property sales, leasing, retail and related activities and hospitality are included in other
operating income.
Geographic segments
The Group is currently operating in number of countries outside the UAE and is engaged in development of several
projects which have significant impact on the Group results. The domestic segment includes business activities and
operations in the UAE and the international segment includes business activities and operations outside the UAE
(including export sales).
29
3 SEGMENT INFORMATION (continued)
Business segments
The following tables include revenue, profit and certain assets and liabilities information regarding business segments for
the six-month period and three months period ended 30 June 2022 and 30 June 2021. Assets and liabilities of the business
segments are presented as at 30 June 2022 and 31 December 2021.
Leasing, retail
and related
Real estate activities Hospitality Others Total
AED’000 AED’000 AED’000 AED’000 AED’000
Six-month period ended

30 June 2022:
Revenue
Revenue from external customer
- Over a period of time 7,097,401 2,112,961 290,635 - 9,500,997
- Point in time 2,312,444 1,283,881 477,596 - 4,073,921
────── ─────── ────── ────── ───────
9,409,845 3,396,842 768,231 - 13,574,918
══════ ═══════ ══════ ══════ ═══════
Results
Profit before tax and before (a) & (b) 3,380,743 1,785,159 279,516 273,018 5,718,436
────── ────── ────── ──────
(a) Unallocated selling, general
and administrative expenses (449,831)
(b) Unallocated finance cost, net (33,428)
───────
Profit before tax for the period 5,235,177
═══════
Other segment information

Capital expenditure
(Property, plant and equipment
and investment properties) 52,175 558,284 196,506 64,688 871,653
══════ ═══════ ═══════ ═══════ ═══════
Depreciation
(Property, plant and equipment,
right-of-use assets and
investment properties) 128,486 442,325 99,930 32,453 703,194
══════ ═══════ ═══════ ═══════ ═══════
Three-month period ended

30 June 2022:
Revenue
Revenue from external customers
- Point in time 1,176,051 720,234 216,300 - 2,112,585
────── ─────── ─────── ─────── ───────
4,825,436 1,781,629 332,463 - 6,939,528
══════ ═══════ ═══════ ═══════ ═══════
30

Business segments (continued)

30 June 2022:
Leasing, retail
and related
Results
Profit before tax and before
impairment / write down,(a) & (b) 1,544,536 844,488 94,512 207,792 2,691,328
────── ─────── ─────── ──────

(b) Unallocated finance income, net 36,409
───────
═══════
Assets and liabilities

As at 30 June 2022
Segment assets 87,744,752 26,367,516 5,583,539 3,444,169 123,139,976
═══════ ═══════ ═══════ ═══════ ════════
Segment liabilities 45,060,241 6,591,637 1,098,364 412,987 53,163,229
═══════ ═══════ ═══════ ═══════ ════════
31


30 June 2021 (Restated*):
Leasing, retail
and related
Revenue
- Point in time 2,611,979 885,157 322,340 - 3,819,476
────── ─────── ─────── ─────── ───────
9,525,530 2,364,954 469,497 - 12,359,981
═══════ ════════ ════════ ════════ ════════
Results
Profit before tax and before (a) & (b) 2,499,094 810,627 69,719 206,449 3,585,889
────── ─────── ─────── ───────
───────
════════
Other segment information

Capital expenditure
(Property, plant and equipment
and investment properties) 269,834 580,395 89,550 74,423 1,014,202
═══════ ════════ ════════ ════════ ════════
Depreciation
(Property, plant and equipment,
investment properties and right
of use assets) 138,370 388,586 107,385 26,206 660,547
═══════ ════════ ════════ ════════ ════════
32


30 June 2021:(Restated*)
Leasing, retail
and related
Real estate* activities Hospitality Others Total
(Restated)
Revenue
- Over a period of time 3,574,372 779,373 75,378 - 4,429,123
- Point in time 1,309,787 533,910 166,638 - 2,010,335
────── ─────── ─────── ─────── ───────
4,884,159 1,313,283 242,016 - 6,439,458
═══════ ════════ ════════ ════════ ════════
Results
Profit before tax and before (a) & (b) 1,253,632 403,988 45,305 162,842 1,865,767
═══════ ════════ ════════ ════════

───────
════════
Assets and liabilities

As at 31 December 2021
(Audited and Restated*)
Segment assets 85,408,727 26,234,315 5,631,142 3,339,369 120,613,553

═══════ ═══════ ═══════ ═══════ ═══════
Segment liabilities 45,351,022 5,974,464 1,130,234 415,906 52,871,626
═══════ ═══════ ═══════ ═══════ ═══════
* Refer Note 2.2
33
Geographic segments
The following tables include revenue and other segment information for the six-month periods ended 30 June 2022 and
31 December 2021. Certain assets information for geographic segments is presented as at 30 June 2022 and 31 December
2021.
Domestic International Total
AED’000 AED’000 AED’000
Six-month period ended 30 June 2022:
Revenue
- Over period of time 9,396,489 104,508 9,500,997
- Point in time 1,400,122 2,673,799 4,073,921
─────── ─────── ───────
10,796,611 2,778,307 13,574,918
═══════ ═══════ ═══════
Other Segment Information
Capital expenditure
(Property, plant and equipment and investment properties) 678,473 193,180 871,653
═══════ ═══════ ═══════
Three-month period ended 30 June 2022:

Revenue
- Point in time 634,258 1,478,327 2,112,585
─────── ─────── ───────

5,391,225 1,548,303 6,939,528
═══════ ═══════ ═══════
As at 30 June 2022
Assets
Right-of-use assets 660,325 336,792 997,117
Investments in associates and joint ventures 3,853,195 2,006,857 5,860,052
Other segment assets 85,354,158 30,928,649 116,282,807
──────── ──────── ────────
Total assets 89,867,678 33,272,298 123,139,976
════════ ════════ ════════
Total liabilities 37,465,206 15,698,023 53,163,229

════════ ════════ ════════
Six months period ended 30 June 2021 (Restated*):
Revenue
- Over a period of time 8,393,774 146,731 8,540,505
- Point in time 1,605,447 2,214,029 3,819,476
──────── ──────── ────────
9,999,221 2,360,760 12,359,981
════════ ════════ ════════
34
Geographic segments (continued)
Six months period ended 30 June 2021 (Restated*) (continued):
Domestic International Total

AED’000 AED’000 AED’000
Other Segment Information

Capital expenditure
(Property, plant and equipment and investment properties) 694,699 319,503 1,014,202
═══════ ═══════ ═══════
Three-month period ended 30 June 2021 (Restated):

Revenue
- Point in time 752,937 1,257,398 2,010,335
─────── ─────── ───────
5,095,069 1,344,389 6,439,458
═══════ ═══════ ═══════
Assets as at 31 December 2021 (Audited and Restated*)

Right-of-use assets 709,782 356,899 1,066,681
Investments in associates and joint ventures 3,661,961 1,887,671 5,549,632
Other segment assets 80,800,299 33,196,941 113,997,240
──────── ──────── ────────
Total assets 85,172,042 35,441,511 120,613,553
════════ ════════ ════════
Total liabilities 35,530,958 17,340,668 52,871,626
════════ ════════ ════════
* Refer Note 2.2
35
4 NET ASSETS HELD FOR SALE

During the current period, the Group management committed to a plan to divest online retail business, part of business
segment relating to “Leasing, retail and related activities”. Accordingly, assets and liabilities directly associated with such
online retail business were classified as held for sale. Divestment efforts are ongoing and management expect it to
materialise it within 12 month from reporting date. The major classes of assets and liabilities (after Group elimination)
are as follows:
30 June
2022
AED’000
Assets
Bank balances and cash 51,227
Trade and unbilled receivables 59,626
Other assets, receivables, deposits and prepayments 376,544
Property, plant and equipment 3,967
Intangible assets 531,125
Right-of-use assets 293
───────
Total assets 1,022,782
───────
Liabilities
Trade and other payables 408,969
Advances from customers 8,983
Interest-bearing loans and borrowings 46,379
Provision for employees’ end-of-service benefits 7,498
───────
Total liabilities 471,829
───────
Net assets directly associated 550,953
═══════
36
5 REVENUE AND COST OF REVENUE

───────────────── ─────────────────
2022 2021 2022 2021
AED’000 AED’000 AED’000 AED’000
(Restated) (Restated)
Revenue:
Revenue from property sales
Sale of residential units 7,739,427 8,045,949 4,094,289 4,206,781
Sale of commercial units, plots of land and others 1,670,418 1,479,581 731,147 677,378
Revenue from hospitality 768,231 469,496 332,463 242,016
Revenue from leased properties, retail 3,396,842 2,364,955 1,781,629 1,313,283

and related income
─────── ────── ─────── ──────
13,574,918 12,359,981 6,939,528 6,439,458
═══════ ══════ ═══════ ══════
Cost of revenue:
Cost of revenue from property sales
Cost of residential units 4,877,000 5,455,751 2,536,947 2,874,107
Cost of commercial units, plots of land and others 615,663 517,769 258,732 255,507
Operating cost of hospitality 347,339 245,464 172,923 127,512
Operating cost of leased properties, retail 903,511 765,215 534,281 465,181

and related activities
─────── ────── ─────── ──────
6,743,513 6,984,199 3,502,883 3,722,307
═══════ ═══════ ═══════ ═══════
37
6 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

───────────────── ─────────────────
2022 2021 2022 2021
AED’000 AED’000 AED’000 AED’000
Sales and marketing expenses 644,099 764,865 325,279 389,862

Payroll and related expenses 341,052 372,643 176,440 193,150
Depreciation of right-of-use assets 63,471 65,483 29,101 30,019
Property management expenses 124,979 101,616 63,289 41,133
Provision for doubtful receivables and advance 14,944 400,404 886 192,455
Other expenses 314,791 287,669 151,116 154,281
────── ────── ────── ──────
1,503,336 1,992,680 746,111 1,000,900
══════ ══════ ══════ ══════
7(a) FINANCE INCOME

───────────────── ─────────────────
2022 2021 2022 2021
AED’000 AED’000 AED’000 AED’000
Finance income from bank deposits and securities 145,472 140,136 82,028 73,729
Other finance income 167,593 40,055 124,385 21,635
─────── ───── ─────── ─────
313,065 180,191 206,413 95,364
═══════ ═════ ═══════ ═════
7(b) FINANCE COST

───────────────── ─────────────────
2022 2021 2022 2021
AED’000 AED’000 AED’000 AED’000
Finance costs on borrowings 338,792 341,242 178,890 167,507

Other finance costs 142,491 148,345 69,369 89,626
─────── ───── ─────── ─────
481,283 489,587 248,259 257,133
═══════ ═════ ═══════ ═════
38
8 BANK BALANCES AND CASH

30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
(Restated)
Cash in hand 14,680 6,981

Current and call bank deposit accounts 11,544,675 7,364,019
Fixed deposits maturing within three months 299,259 316,404
─────── ───────
Total 11,858,614 7,687,404
Deposits under lien (note 22) 228,640 157,285
Fixed deposits maturing after three months and restricted cash 889,310 694,169
─────── ───────
12,976,564 8,538,858
═══════ ═══════
Bank balances and cash located:

Within UAE 10,958,995 6,970,765
Outside UAE 2,017,569 1,568,093
─────── ───────
12,976,564 8,538,858
═══════ ═══════
Bank balances and cash are denominated in the following currencies:

United Arab Emirates Dirham (AED) 11,069,250 6,997,815
United States Dollar (USD) 994,962 912,947
Saudi Riyal (SAR) 147,791 168,597
Indian Rupee (INR) 284,136 228,187
Egyptian Pound (EGP) 318,624 110,675
Other currencies 161,801 120,637
─────── ───────
12,976,564 8,538,858
═══════ ═══════
As at 30 June 2022, cash and cash equivalent is AED 11,900,106 thousands (31 December 2021 (Restated): AED
7,463,883 thousands), including cash held by entity under held for sales of AED 51,227 thousands (refer note 4) which
is net of facilities obtained from various commercial banks and which are repayable on demand (refer note 16).
Cash at banks earn interest at fixed rates based on prevailing bank deposit rates. Short-term fixed deposits are made for
varying periods between one day and three months, depending on the cash requirements of the Group, and earn interest at
the respective short-term deposit rates.
As at the reporting date, bank balances and cash include an amount of AED 7,982,439 thousands (31 December 2021
(Restated): AED 5,959,567 thousands) with banks for advances received from customers against sale of development
properties which are deposited into escrow accounts and unclaimed dividends. These deposits/balances are not under lien.
39
9 TRADE AND UNBILLED RECEIVABLES

30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
(Restated)
Trade receivables
Amounts receivables within 12 months, net 1,257,407 1,397,824
Amounts receivable after 12 months 386,059 403,910
─────── ───────
1,643,466 1,801,734
─────── ───────
Unbilled receivables
Unbilled receivables within 12 months 5,673,948 5,461,314
Unbilled receivables after 12 months, net 10,402,311 9,323,008
─────── ───────
16,076,259 14,784,322
─────── ───────
Total trade and unbilled receivables 17,719,725 16,586,056
═══════ ═══════
The above trade receivables are net of AED 496,314 thousands (31 December 2021 (Restated): AED 498,482 thousands)
relating to provision for doubtful debts. All other receivables are considered recoverable in full.
10 OTHER ASSETS, RECEIVABLES, DEPOSITS AND PREPAYMENTS
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
(Restated)
Recoverable under development agreements 5,192,884 4,547,121

Advance against investments (i) 3,970,597 3,818,672
Advances to contractors and others 1,255,620 1,418,398
Deferred sales commission (ii) 1,163,006 1,121,663
Value added tax recoverable 508,380 386,936
Recoverable from non-controlling interests 297,985 322,051
Inventory - Hospitality and Retail 49,687 301,665
Receivables from Communities Owner Associations 451,771 480,368
Deferred income tax assets 180,151 166,141
Prepayments 149,777 138,027
Deposits for acquisition of land 28,171 21,507
Accrued interest 19,891 19,901
Other receivables and deposits 1,489,512 1,415,079
──────── ────────
14,757,432 14,157,529
════════ ════════
Other assets, receivables, deposits and prepayments maturity profile:
Within 12 months 6,464,318 6,041,326
After 12 months 8,293,114 8,116,203
─────── ────────
14,757,432 14,157,529
═══════ ════════
(i) Advance against investments represent funds contributed by the Group for the purposes of obtaining equity interest
in certain ventures. These contributions were not formalized or converted into share capital as at the reporting date.
(ii) Deferred sales commission expense incurred to obtain or fulfil a contract with the customers is amortised over the
period of satisfying performance obligations where applicable.
40
11 DEVELOPMENT PROPERTIES
30 June
2022
AED’000
Balance at the beginning of the period (Audited) 37,740,746
Effect of restatement (Note 2.2) (51,450)
───────
Balance at the beginning of the period (Restated) 37,689,296
Add: Cost incurred during the period 3,834,797
Less: Cost transferred to cost of revenue during the period (5,492,663)

Less: Foreign currency translation differences (1,739,813)
───────
Balance at the end of the period 34,291,617
═══════
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
(Restated)
Development properties located:
Within UAE 17,156,288 18,708,078
Outside UAE 17,135,329 18,981,218
─────── ───────
34,291,617 37,689,296
═══════ ═══════
12 INVESTMENTS IN SECURITIES
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
Financial assets at fair value through other comprehensive income 1,103,711 1,310,250
Financial assets at fair value through profit and loss 100,692 151,275
Financial assets at amortized cost 1,204,234 1,811,603
─────── ───────
2,408,637 3,273,128
═══════ ═══════
Investments in securities:
Within UAE 946,228 1,170,252
Outside UAE 1,462,409 2,102,876
─────── ───────
2,408,637 3,273,128
═══════ ═══════
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial assets at fair value by
valuation technique:
Total Level 1 Level 2 Level 3
AED’000 AED’000 AED’000 AED’000
30 June 2022 1,204,403 100,260 1,051,440 52,702

═══════ ═══════ ═══════ ═══════
31 December 2021 (Audited) 1,461,525 140,843 1,291,459 29,223
═══════ ═══════ ═══════ ═══════
Valuations for Level 2 investments in securities have been derived by determining their redemption value which is
generally net asset value per share of the investee companies. There were no transfers made between Level 1 and Level
2 during the period.
41
13 LOANS TO ASSOCIATES AND JOINT VENTURES

30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
(Restated)
Emaar Dubai South DWC LLC 831,107 843,493
Old Town Views LLC 148,069 136,266
Amlak Finance PJSC (i) 78,572 81,080
Other associates and joint ventures 50,191 46,871
──────── ────────
1,107,939 1,107,710
════════ ════════
Other than (i) below, loans to associates and joint ventures are unsecured, repayable on demand / as per the terms of the
agreement and do not carry any interest.
(i) As per the terms of the restructuring agreement entered in 2014, 20% of the principal amount of the loan was repaid
by Amlak in 2014, 65% is restructured into a long term facility maturing in 12 years carrying a profit rate of 2% per
annum and 15% is restructured into a 12-year contingent convertible instrument.
14 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
(Restated)
Carrying value of investments in associates and joint ventures:
Emaar, The Economic City (Saudi Joint Stock Company) - quoted* (note (a)) 1,731,541 1,593,458
Downtown DCP LLC * 498,187 514,786
DWTC Emaar LLC 499,414 496,464
Turner International Middle East Ltd 288,858 265,960
Zabeel Square LLC 255,665 255,665
Eko Temali Parklar Turizm Işletmeleri Anonim Şirketi 187,098 200,038
Emaar Industries and Investment (Pvt) JSC* 140,296 142,894
Amlak Finance PJSC - quoted * 654,237 565,891
Dead Sea Company for Tourist and Real Estate Investment* 52,473 58,339
Other associates and joint ventures 1,552,282 1,456,137
──────── ────────
5,860,051 5,549,632
════════ ════════
* Represents Group’s investment in associates
(a) Includes gain of AED 233,406 thousands resulting from restructuring at Emaar, The Economic City, which is
recognised as part of other income during the current period.
The Group has the following effective ownership interest in its significant associates and joint ventures:
Ownership
30 June 31 December
Country 2022 2021
Emaar, The Economic City (Saudi Joint Stock Company) KSA 22.95% 22.95%
Downtown DCP LLC UAE 20.00% 20.00%
DWTC Emaar LLC UAE 50.00% 50.00%
Turner International Middle East Ltd UAE 65.00% 65.00%
Zabeel Square LLC UAE 50.00% 50.00%
Eko Temali Parklar Turizm Işletmeleri Anonim Şirketi Turkey 50.00% 50.00%
Emaar Industries and Investments (Pvt) JSC UAE 40.00% 40.00%
Amlak Finance PJSC UAE 48.08% 48.08%
Dead Sea Company for Tourist and Real Estate Investment Jordan 29.33% 29.33%
Emaar Dubai South DWC LLC UAE 50.00% 50.00%
Old Town Views LLC UAE 61.25% 61.25%
Rove Hospitality LLC UAE 50.00% 50.00%
Emaar Bawadi LLC UAE 50.00% 50.00%
42
15 TRADE AND OTHER PAYABLES
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
(Restated)
Project contract cost accruals and provisions 6,813,801 6,730,990

Creditors for land purchase 3,560,165 4,059,548
Trade payables 1,509,485 1,563,719
Lease liabilities 1,020,862 1,152,292
Payable to non-controlling interests 202,489 204,429
Dividends payable 285,765 287,545
Income tax payable 146,114 275,539
Other payables and accruals 3,795,284 4,247,313
─────── ───────
17,333,965 18,521,375
═══════ ═══════
16 INTEREST-BEARING LOANS AND BORROWINGS

30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
(Restated)
Balance at the beginning of the period / year 9,195,391 13,993,753

Less: Effect of restatement (note 2.2) (708,124) (802,791)
─────── ──────
Balance at the beginning of the period / year (Restated) 8,487,267 13,190,962
Add: Borrowings drawdown during the period / year 5,159,413 5,461,571
Less: Borrowings repaid during the period / year (5,503,097) (10,165,266)
Less: Transferred to liabilities directly associated with assets
classified as held for sales (note 4) (46,379) -
─────── ──────
Balance at the end of the period / year 8,097,204 8,487,267
Add: Facilities payable on demand (note 8) 9,735 223,521
Less: Unamortised portion of directly attributable costs (8,558) (2,029)
─────── ──────
Net interest-bearing loans and borrowings at the end of the period / year 8,098,381 8,708,759
═══════ ══════
Interest-bearing loans and borrowings maturity profile:
Within 12 months 3,845,824 6,317,370
After 12 months 4,252,557 2,391,389
─────── ──────
Balance at the end of the period / year 8,098,381 8,708,759
═══════ ══════
Interest-bearing loans and borrowings located:
Within UAE 3,702,923 4,702,299
Outside UAE 4,395,458 4,006,460
─────── ──────
8,098,381 8,708,759
═══════ ══════
43
16 INTEREST-BEARING LOANS AND BORROWINGS (continued)
The Group has the following secured and unsecured interest-bearing loans and borrowings:
Secured
- USD 400,000 thousands (AED 1,469,200 thousands) of Syndicated facility, secured against certain investment
properties owned by the Group in Turkey, carries interest at LIBOR plus 1.50% per annum and fully repayable in
2022.
- USD 8,289 thousands (AED 30,445 thousands) loan from commercial bank, secured against certain assets in
Lebanon, carries interest at 7.5% per annum and is repayable in 2022.
- INR 8,759,538 thousands (AED 407,389 thousands) loans from commercial banks and financial institutions,
secured against certain assets in India, bearing interest at rates ranging from 9.07% to 9.20% per annum and
repayable by 2025.
Unsecured
- The Group had drawdown USD 215,000 thousands (AED 789,695 thousands) out of USD 1,500,000 thousands
(AED 5,509,500 thousands) Revolving Credit Line Facility (the “Facility”) availed from the syndication of
commercial banks in UAE, carries interest / profit at LIBOR plus 1.25% per annum and is repayable by 2025. The
facility is presented in the interim condensed consolidated financial statements at AED 782,076 thousands net of
unamortised directly attributable transaction cost.
- The Group had drawdown USD 743,820 thousands (AED 2,732,051 thousands) out of USD 1,000,000 thousands
(AED 3,673,000 thousands) Revolving Credit Line Facility (the “Facility”) availed from the syndication of
commercial banks in UAE, carries profit at LIBOR plus 1.25% per annum and is repayable by 2025. The facility
is presented in the interim condensed consolidated financial statements at AED 2,731,112 thousands net of
unamortised directly attributable transaction cost.
- AED 180,000 thousands represent short term facilities obtained from a commercial bank in the United Arab
Emirates bearing interest of 1 month EIBOR plus 1% per annum and is due in 2022.
- AED 9,735 thousands represent facilities obtained from commercial banks in the United Arab Emirates bearing
interest of 1 month EIBOR plus 1% per annum and is due in 2022.
- EGP 3,067,800 thousands (AED 599,433 thousands) of funding facilities from commercial banks in Egypt, bearing
interest at rates ranging up to 11.75% and repayable by 2027.
- USD 7,000 thousands (AED 25,711 thousands) loans from commercial banks in Lebanon, bearing interest up to
3.65% per annum and repayable in 2023.
- SAR 150,000 thousands (AED 147,000 thousands) loan from a commercial bank bearing interest at SIBOR plus
1% per annum and are repayable in 2023.
- INR 36,902,913 thousands (AED 1,716,280 thousands) loans from commercial banks in India, bearing interest
from 5.80% to 9.50% per annum and repayable by 2026.
44
17 SUKUK
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
Emaar Sukuk Limited:
- Series 3 2,749,841 2,749,354
- Series 4 1,833,021 1,832,444
- Series 5 1,832,836 1,832,667
EMG Sukuk Limited:

- Sukuk 2,749,684 2,748,475
─────── ──────
Total Sukuk liability as at period / year-end (all payable after 12 months) 9,165,382 9,162,940
═══════ ══════
A. Emaar Sukuk Limited:
Emaar Sukuk Limited (the “Issuer”), a limited liability company registered in the Cayman Islands and a wholly- owned
subsidiary of the Group, has established a trust certificate issuance programme (the “Programme”) pursuant to which the
Issuer may issue from time to time up to USD 2,000,000 thousands (AED 7,346,000 thousands) of trust certificates in
series.
Series 3:
On 15 September 2016, the Issuer had issued the third series of the trust certificates (the “Sukuk 3”) amounting to USD
750,000 thousands (AED 2,754,750 thousands) under the Programme. The Sukuk 3 is listed on NASDAQ Dubai and is due
for repayment in 2026. Sukuk 3 carries a profit distribution at the rate of 3.64% per annum to be paid semi-annually. The
carrying value of Sukuk 3 is as follows:
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
Sukuk liability as at period / year-end 2,749,841 2,749,354

═══════ ══════
Series 4:
On 17 September 2019, the Issuer has issued the fourth series of the trust certificates (the “Sukuk 4”) amounting to USD
500,000 thousands (AED 1,836,500 thousands) under the Programme. The Sukuk 4 is listed on NASDAQ Dubai and is
due for repayment in 2029. Sukuk 4 carries a profit distribution at the rate of 3.875% per annum to be paid semi-annually.
The carrying value of Sukuk 4 is as follows:
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)

═══════ ══════
45
17 SUKUK (continued)
A. Emaar Sukuk Limited (continued):
Series 5:
On 6 July 2021, the Issuer has issued fifth series of trust certificates (the “Sukuk 5”) amounting to AED 1,836,500
thousands (USD 500,000 thousands) under the Programme. The Sukuk 5 is listed on NASDAQ Dubai and is due for
repayment in 2031. Sukuk 5 carries a profit distribution at the rate of 3.7% per annum to be paid semi-annually. The
carrying value of Sukuk 5 is as follows:
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)

═══════ ══════
B. EMG Sukuk Limited:
On 18 June 2014, the EMG Sukuk Limited (the “Issuer”), a limited liability company registered in the Cayman Islands and
a wholly-owned subsidiary of Emaar Malls Group PJSC (“EMG”), has issued trust certificates (the “Sukuk”) amounting
to USD 750,000 thousands (AED 2,754,750 thousands). The Sukuk is listed on the NASDAQ Dubai and is due for
repayment in 2024. The Sukuk carries a profit distribution rate of 4.6% per annum to be paid semi-annually. The carrying
value of Sukuk is as follows:
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)

═══════ ══════
18 SHARE CAPITAL
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
Authorised capital 8,179,738,882 shares of AED 1 each

(31 December 2021: 8,179,738,882 shares of AED 1 each) 8,179,739 8,179,739
═══════ ══════
Issued and fully paid-up 8,179,738,882 shares of AED 1 each
(31 December 2021: 8,179,738,882 shares of AED 1 each) 8,179,739 8,179,739
═══════ ══════
The shareholders of the Company have resolved, in its Annual General Meeting held on 20 April 2022, to initiate a share
buyback program by Emaar Properties PJSC of not more than 1% of its issued share capital. The proposed buyback
scheme is subject to regulatory approvals. Further, subject to applicable regulatory approval, Board of Directors of the
Company would decide whether to sell or cancel these shares.
46
19 RESERVE
Net Foreign
unrealised currency
Statutory Capital General Share gains/(losses) translation
reserve reserve reserves premium reserve reserve Total
Balance as at 31 December 2021 (Audited) 17,318,101 3,660 7,320,841 578,234 (1,400,267) (3,773,964) 20,046,605
Decrease in unrealised reserve - - - - (11,616) - (11,616)
Decrease in foreign currency translation reserve - - - - - (973,729) (973,729)

─────── ─────── ─────── ─────── ─────── ─────── ───────
Net loss recognised directly in equity - - - - (11,616) (973,729) (985,345)
─────── ─────── ─────── ─────── ─────── ─────── ───────
Balance as at 30 June 2022 17,318,101 3,660 7,320,841 578,234 (1,411,883) (4,747,693) 19,061,260
═══════ ═══════ ═══════ ═══════ ═══════ ═══════ ═══════
Balance at 1 January 2021 15,220,245 3,660 6,940,830 578,234 (1,411,088) (3,791,284) 17,540,597
Decrease in unrealised reserve - - - - (187,672) - (187,672)
Decrease in foreign currency translation reserve - - - - - (24,695) (24,695)

─────── ─────── ─────── ─────── ─────── ─────── ───────
Net loss recognised directly in equity - - - - (187,672) (24,695) (212,367)
─────── ─────── ─────── ─────── ─────── ─────── ───────
Balance as at 30 June 2021 15,220,245 3,660 6,940,830 578,234 (1,598,760) (3,815,979) 17,328,230
═══════ ═══════ ═══════ ═══════ ═══════ ═══════ ═══════
47
20 DIVIDEND
The company has paid a cash dividend of AED 0.15 per share for 2021 as approved by the shareholders of the Company
at the Annual General Meeting of the Company held on 20 April 2022.
21 RELATED PARTY DISCLOSURES
The Group in the normal course of business enters into transactions with individuals and other entities that falls within
the definition of related party. The Group’s related parties include key management personnel, entities held under
common control, associates, joint ventures and others.
The Group is partly owned by Investment Corporate of Dubai (“ICD”), an entity owned by the Government of Dubai
(“Government”). The Group enters into transactions, in the normal course of business, with Government-owned entities
and entities wherein ICD has control, joint control or significant influence. In accordance with the exemption available
in IAS 24, management has elected not to disclose such transactions, which are primarily in nature of financing and
operational related activities, and entered in the normal course of business at commercial terms.
Related party transactions

During the period, the following were the significant related party transactions, which were carried out in the normal
course of business on terms agreed between the parties:
──────────────────
30 June 30 June
2022 2021
AED’000 AED’000
Associates and Joint Ventures:
Property development expenses 8,201 -
Islamic finance income 1,075 1,125
Selling, general and administrative expenses 52,173 5,542
Revenue from leasing, retail and related income 99 100
Cost of revenue - 326
Other operating income 40 1,593
═════ ═════
Directors, Key management personnel and their related parties:
Selling, general and administrative expenses 36,050 95,064
Rental income from leased properties and related income 37,700 43,894
Finance costs 18,181 32,596
Finance income - 2,226
Cost of revenue 3,717 8,287
Other income - 1,500
Other operating income 15,573 15,332
Property development expenses 13,300 -
═════ ═════
Related party balances
Significant related party balances (and the interim condensed consolidated statement of financial position captions
within which these are included) are as follows:
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
Associates and joint ventures:
Trade and other payables 14,073 14,978
Trade and unbilled receivables 1,753 1,671
Advance from customers 4,104 -
══════ ══════
Directors, Key management personnel and their related parties:
Trade and unbilled receivables 7,474 2,897
Other assets, receivables, deposits and prepayments 129,389 151,772
Advance from customers 4,445 4,312
Trade and other payables 653,868 694,398
══════ ══════
48
21 RELATED PARTY DISCLOSURES (continued)
Compensation of key management personnel
The remuneration of key management personnel during the period was as follows:
30 June 30 June
2022 2021
AED’000 AED’000
Short-term benefits 137,479 143,719

Employees’ end-of-service benefits 7,748 3,708
────── ──────
145,227 147,427
══════ ══════
During the period, the number of key management personnel is 145 (30 June 2021: 154).
During the period, the Company has paid a remuneration of AED 9,199 thousands to the non-executive members of
the Board of Directors for the year 2021 as approved by the shareholders at the Annual General Meeting of the Company
held on 20 April 2022.
22 GUARANTEES AND CONTINGENCIES
a) Guarantees
1. The Group has issued financial guarantees and letters of credit of AED 73,932 thousands (31 December 2021:
AED 32,047 thousands).
2. The Group has provided a financial guarantee of AED 5,000 thousands (31 December 2021: AED 5,000
thousands) as security for the letter of guarantee issued by a commercial bank for issuance of a trade license from
the Government of Dubai.
3. The Group has provided a performance guarantee of AED 6,448,347 thousands (31 December 2021: AED
6,351,465 thousands) to the Real Estate Regulatory Authority (RERA), Dubai for its new projects as per RERA
regulations.
4. The Group has provided guarantee of AED 430,577 thousands (31 December 2021: AED 417,098 thousands) to
commercial banks as security for a joint venture of the Group and against promissory notes issued by an entity
with which Group is developing a project under development agreements.
5. The Group has provided performance guarantees of AED 95,221 thousands (31 December 2021: AED 104,131
thousands) to various government authorities in India for its projects. The banks have a lien of AED 218,504
thousands (31 December 2021: AED 145,163 thousands) towards various facilities (refer note 8).
6. The Group has provided a letter of credit and credit card facility of AED 366 thousands (31 December 2021:
AED 438 thousands) in Egypt for its project. The bank has a lien of AED 366 thousands (31 December 2021:
AED 438 thousands) towards this letter of credit and credit card (refer note 8).
7. The Group has provided a bank guarantee of EGP 50,000 thousands (AED 9,770 thousands) (31 December 2021:
AED 11,684 thousands) to government authority in Egypt for its project. The bank has a lien of EGP 50,000
thousands (AED 9,770 thousands) (31 December 2021: AED 11,684 thousands) (refer note 8) towards this
bank guarantee.
49
b) Contingencies
1. (a) Andhra Pradesh Industrial Infrastructure Corporation Ltd. (‘APIIC’), a joint venture partner in certain
subsidiaries of the Group in India, issued a legal notice to the Emaar India Land Ltd. (Emaar India) to terminate
certain development and operational management agreements which were entered into between Emaar India,
Emaar Hills Township Private Limited (‘EHTPL’ – a joint venture of the Group with APIIC) and Boulder Hills
Leisure Private Limited (‘BHLPL’ – a joint venture of the Group with APIIC). APIIC has filed another suit
against Emaar India to restrain Emaar India from carrying out any activity related to these developments. In
addition thereto, number of litigations were initiated against the Group by third parties on the grounds of
irregularities in acquisition and allocation of land, sale plots etc.
The management based on legal advice, is of the opinion that all the aforesaid suits filed by APIIC which are now
being defended by Telangana State Industrial Infrastructure Corporation (‘TSIIC’), shall be settled amicably by
the parties through local and legal provisions available.
(b) TSIIC has filed a Petition before National Company Law Tribunal, Hyderabad Bench (“NCLT”) against
EHTPL and certain other parties under Section 241 and 242 of the Indian Companies Act 2013. The management
believes that since the factual position with respect to demerger proceedings between APIIC and TSIIC has not
changed and are still pending, therefore TSIIC has no locus standi to file the petition as it is not a shareholder of
EHTPL and its name has not been entered into the Statutory Register of Members as maintained in terms of the
provisions of the Indian Companies Act 2013. Accordingly, management believes that the petition filed by TSIIC
is not tenable. However, subsequent to reporting date on 25 July 2022, the maintainability issue has been decided
by the NCLT, Hyderabad Bench in favour of the TSIIC and the group or its representatives have been restrained
from dealing with the assets and properties of EHTPL. The Group is in process of filing an appeal under Section
421 of the Indian Companies Act 2013, against this interim order dated 25 July 2022.
2. Emaar MGF Construction Private Limited (EMCPL), a subsidiary of the Group, had developed and constructed
the Commonwealth Games Village (CWGV) in India on a Public Private Partnership model in furtherance to the
Project Development Agreement (PDA) entered with Delhi Development Authority (DDA) on 14 September
2007. The project completion was acknowledged by the DDA and Occupancy Certificate was issued in
furtherance to the same. However, DDA invoked the performance Bank Guarantee (BG) of INR 1,830 million
(AED 85 million) on account of Liquidated Damages (LD) and other claims on account of excess Floor Area
Ratio (FAR) consumed and utilized, forfeiture of certain number of apartments, and certain other claims, alleging
that EMCPL had not been able to achieve the timelines as per the terms of PDA. EMCPL contested the invocation
of BG by filing a Petition with the Hon’ble Delhi High Court, for stay of encashment of the Bank Guarantees.
Later, the Hon’ble Delhi High Court disposed of the said appeal by forming an Arbitral Tribunal and gave liberty
to the parties to refer all their disputes to the Arbitral Tribunal. Arbitral Tribunal directed both the parties to file
their respective claims. Pursuant to this, EMCPL filed statement of facts along with claims amounting to INR
14,182 million (AED 660 million). DDA filed their reply to EMCPL’s statement of facts and claims and also filed
their counter claims amounting to INR 14,460 million (AED 672 million) including LD. The above matter is
pending before the Arbitral Tribunal.
The management believes, based on legal opinion, that EMCPL has met the requirements as per PDA and the LD
imposed / BG invoked and other claims raised by DDA are not justifiable.
3. Ahluwalia Contracts (India) Limited (the “Contractor”) appointed by EMCPL for the construction of the CWGV
project in Delhi had filed certain claims which were not accepted by EMCPL. Consequently, the Contractor
invoked the arbitration clause under the contract and filed claims amounting to INR 4,200 million (AED 195
million) relating to the works supposed to have been carried out by it but the same was not accepted by EMCPL.
EMCPL also filed its Counter Claims amounting to INR 11,703 million (AED 544 million) against the Contractor
for deficient and defective works, adjustments in billing and payments in line with the contract as well as a back-
to-back claim on account of the invocation of BG as stated above. The above matter is pending before the Arbitral
Tribunal for final arguments.
The management believes that the Contractor has defaulted as per the Contract and claims raised by them are
not in accordance with the terms of the contract. Accordingly, EMCPL is hopeful of a favourable decision from
the arbitration panel.
50
23 COMMITMENTS
At 30 June 2022, the Group had commitments of AED 10,689,087 thousands (31 December 2021: AED 8,666,977
thousands) which include project commitments of AED 10,181,970 thousands (31 December 2021: AED 7,928,074
thousands). This represents the value of contracts entered into by the Group including contracts entered for purchase of
plots of land at period end net of invoices received and accruals made at that date.
Furthermore, in accordance with the Development Agreement entered by the Group with the joint venture of Mina Rashid
project, the Group has a commitment to pay 30% of future profits of the project over the project life cycle.
The Group has provided minimum performance guarantees for a specified period to owners of the hotel which it operates under
the hotel management contracts.
There are certain claims submitted by contractors and other parties relating to various projects of the Group in the
ordinary course of business from which it is anticipated that no material unprovided liabilities will arise.
Subsequent to the reporting date, on 11 August 2022, the Board of Directors of the Company have approved to fully acquire the
shareholding in Dubai Creek Harbour LLC (“DCH”), the owner of a major project development located along the Dubai Creek’s
waterfront. The Company will pay AED 7.5 billion to shareholders of DCH, in the form of cash and issuance of new shares in
the Company. This transaction is subject to regulatory and the Company’s shareholders approval.
Operating lease commitments - Group as lessor

The Group has entered into leases on its investment property portfolio. The future minimum rentals receivable under
non-cancellable operating leases contracted for as at the reporting date but not recognised as receivables, are as follows:
30 June 31 December
2022 2021
AED’000 AED’000
(Audited)
Within one year 3,084,380 2,792,654

After one year but not more than five years 5,382,987 5,926,985
More than five years 1,648,568 1,132,342
─────── ──────
10,115,935 9,851,981
═══════ ══════
In addition to the above lease commitments, the Group also have rent agreements where in it is entitled to receive rent
based on turnover of tenants and services charges.
24 FAIR VALUES OF FINANCIAL INSTRUMENTS
Financial instruments comprise financial assets and financial liabilities.
Financial assets of the Group include bank balances and cash, trade and unbilled receivables, investment in securities,
loans and advances, other receivables and due from related parties. Financial liabilities of the Group include customer
deposits, interest-bearing loans and borrowings, sukuk, accounts payable, retentions payable and other payable.
The fair values of the financial assets and liabilities are not materially different from their carrying value unless stated
otherwise.
51

Emaar Properties FS Q2 2022 English

Uploaded by

Copyright:

Available Formats

Emaar Properties FS Q2 2022 English

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Emaar Properties FS Q2 2022 English

Uploaded by

Copyright:

Available Formats

Emaar Properties PJSC

and its Subsidiaries

Report on Review of Interim Condensed Consolidated Financial Statements 1–2

Interim Condensed Consolidated Income Statement 3

Interim Condensed Consolidated Statement of Comprehensive Income 4

Interim Condensed Consolidated Statement of Financial Position 5

Interim Condensed Consolidated Statement of Changes in Equity 6–7

Interim Condensed Consolidated Statement of Cash Flows 8

Notes to the Interim Condensed Consolidated Financial Statements 9 – 51

(US $1.00 = AED 3.673)

Revenue 5 13,574,918 12,359,981 6,939,528 6,439,458

Cost of revenue 5 (6,743,513) (6,984,199) (3,502,883) (3,722,307)

Other operating income 206,441 169,350 114,701 99,204

Income tax expense (128,235) (118,014) (80,233) (37,525)

(US $1.00 = AED 3.673)

Net profit for the period 5,106,942 2,589,880 2,453,001 1,390,404

Other comprehensive (loss) / income to

Increase / (Decrease) in unrealised

Decrease in foreign currency

Other comprehensive (loss) / income not to be

(Decrease) / increase in unrealised

Realised gain on fair value movement through

Owners of the Parent 3,320,645 1,358,197 1,663,338 1,121,718

(US $1.00 = AED 3.673)

Total comprehensive income for the period

Net profit for the period - - - 4,300,431 4,300,431 806,511 5,106,942

Directors’ remuneration (note 21) - - - (9,199) (9,199) - (9,199)

Dividend paid to shareholders (note 20) - - - (1,226,961) (1,226,961) - (1,226,961)

Dividend and directors’ bonus of subsidiaries - - - (6,388) (6,388) (470,780) (477,168)

Other movement - - - (46,118) (46,118) - (46,118)

────── ───── ────── ─────── ────── ────── ──────

(US $1.00 = AED 3.673)

Total comprehensive income for the period

Directors’ remuneration (note 21) - - - (9,329) (9,329) - (9,329)

Dividend paid to shareholders (note 20) - - - (715,974) (715,974) - (715,974)

Dividend and directors’ bonus of subsidiaries - - - (6,864) (6,864) (811,461) (818,325)

Other movement - - - (27,101) (27,101) - (27,101)

────── ───── ────── ─────── ────── ────── ──────

1 DOMICILE AND ACTIVITIES

2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Timing of satisfaction of performance obligations

Determination of transaction prices

Transfer of control in contracts with customers

Revenue recognition for turnover rent

Classification of investment properties

Operating lease commitments - Group as lessor

2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Valuation of investment properties

Retrospective change in classification of investment

2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

For the three-month period ended 30 June 2021 (continued):

Consolidated Statement of Cash flow

Cost to complete the projects

2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Fair value measurement of financial instruments

2.3 CHANGES IN THE ACCOUNTING POLICIES AND DISCLOSURES