Stock Markets June 25, 2026 01:12 AM

Jefferies Picks Three UAE Property Stocks as Buys, Cites Infrastructure and Cash Strength

Investment bank highlights Aldar, Emaar Development and Emaar Properties as beneficiaries of UAE capex and strong balance sheets

By Caleb Monroe
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Jefferies has assigned Buy ratings to three UAE-listed real estate companies — Aldar Properties, Emaar Development and Emaar Properties — identifying them as well placed to benefit from a surge in infrastructure spending, robust cash generation and sizeable strategic land holdings across the Emirates.

Jefferies Picks Three UAE Property Stocks as Buys, Cites Infrastructure and Cash Strength
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Key Points

  • Jefferies assigns Buy ratings to Aldar Properties, Emaar Development and Emaar Properties based on infrastructure exposure and cash strength.
  • Aldar is identified for its diversified operations and a AED55 billion public-private partnership pipeline, with its yield forecast to exceed 5% by 2028.
  • Emaar Development is described as cash-rich with 0.3 billion square feet of land and projected dividends 17-19% above Street expectations for 2026-27.

Overview

Jefferies has flagged three leading property and real estate names in the United Arab Emirates and given all three Buy ratings as the sector adjusts to changing market dynamics. The bank’s analysis centers on businesses that stand to gain from elevated infrastructure spending, healthy cash flows and meaningful land positions across the Emirates.


Company assessments

  • Aldar Properties - Buy

    Jefferies describes Aldar as an "Abu Dhabi Champion and A Play on the Upcoming Capex Super-Cycle." The firm highlights Aldar’s stronger medium-term pre-sales profile and a diversified mix of activities that includes project management and logistics assets tied to rising UAE infrastructure investment. Jefferies points to a new AED55 billion public-private partnership pipeline as a concrete source of growth opportunities. While Aldar’s current yield is said to be lower than peers, the bank projects that the yield will climb above 5% by 2028.

  • Emaar Development - Buy

    Labelled a "Cash Machine," Emaar Development is presented as a high-quality, cash-rich platform. Jefferies notes that the company’s medium-term pre-sales remain near mid-cycle levels and that it controls strategically located land totaling 0.3 billion square feet, with a product emphasis on villas and master-planned communities. The firm factors in lower margins on new launches - estimating margins that are 3-6 percentage points below prior levels - yet still models medium-term earnings per share above consensus. Jefferies also forecasts 2026-27 dividends that are 17-19% higher than Street expectations, representing under 25% of non-escrow cash.

  • Emaar Properties - Buy

    Jefferies sees Emaar Properties as offering "Appealing Exposure to The Dubai Success Story." Although the bank is cautious on tourism, it points to recurring income from prime retail assets as a stabilizing factor. Jefferies’ own forecasts sit above consensus levels and the firm considers an AED1.00 per share dividend to be highly secure even while Emaar executes an AED65 billion capital expenditure program. Emaar is noted as one of the most liquid stocks in the MENA region, offers an 8% yield and trades at roughly a 55% discount to third-party net asset value.


Interpretation and market context

Jefferies’ selections emphasize a combination of recurring cash generation, scale in land holdings and direct exposure to infrastructure-led demand. The bank’s projections for each company generally exceed consensus, underpinning its Buy recommendations. For investors focused on income or balance-sheet strength within the UAE property complex, these names are presented as primary candidates aligned with an anticipated capex cycle across the Emirates.


Bottom line

Jefferies has highlighted Aldar, Emaar Development and Emaar Properties as Buy-rated ways to participate in potential upside from UAE infrastructure spending and resilient cash profiles. The bank’s detailed assumptions include improved yields at Aldar, above-consensus EPS and dividend forecasts at Emaar Development, and a secure dividend and steep valuation discount for Emaar Properties despite a large planned capex program.

Risks

  • Tourism-related caution noted for Emaar Properties could affect recurring retail income and overall stability - impacts retail and hospitality sectors.
  • Lower margins on new launches for Emaar Development (3-6 percentage points) could pressure profitability in the residential development segment - impacts residential real estate and construction.
  • Execution risk tied to large capex plans such as Emaar Properties’ AED65 billion program and the AED55 billion public-private partnership pipeline for Aldar - impacts infrastructure, construction and financing markets.

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