Financial Stability
Analysis of liquidity, debt burden, and operational metrics based on audited and internal statements.
How We Rate
We conduct an assessment of a developer's reliability and financial stability using a scoring model based on a combination of quantitative and qualitative factors.
The scoring methodology is built on the principles of multifactor analysis and takes into account business risks, the internal financial position of the company, as well as the reputational characteristics.
Three pillars of assessment
We perform the assessment across three fundamental categories, each reflecting a separate aspect of business resilience:
Business Risks
Evaluation of operational scale, volume of active projects, market share, and geographic diversification.
Reputation & Legal
Assessment of litigation, executive team stability, audit transparency, and historical pay compliance.
Each category includes a set of indicators that characterize the corresponding type of risk. For each indicator, a score (on a scale from 0 to 100) is calculated based on predefined scales and benchmarks. These scores are then aggregated within categories to form the final integrated company scoring.
Financial Stability
This category characterizes the current financial condition of the company and its ability to meet obligations to creditors and counterparties. The analysis is based on the company's financial statements and is aimed at identifying factors that affect business resilience and the stability of its operating activities.
The assessment includes analysis of:
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Liquidity
Evaluating current cash reserves and quick assets against near-term financial obligations.
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Debt Burden
Assessing leverage metrics, debt-to-equity ratios, and interest coverage capability.
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Profitability
Analyzing gross margins, operating profits, and return on equity over continuous cycles.
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Revenue Structure
Understanding predictability, customer concentrations, and historical revenue consistency.
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Operating Cycle Specifics
Assessing inventory turnover, construction lifecycles, and receivables age.
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Seasonality Impact
Evaluating how seasonal fluctuations impact project-level cash inflows and outflows.
Business Risks
This category assesses the developer's operational scale, execution power, and market footprint to identify risks tied to concentration or scale bottlenecks.
The assessment considers:
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Projects & Activity
Evaluating the total count of delivered developments and the volume of live construction sites.
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Off-Plan & Inventory
Analyzing sale velocity of pre-construction units and availability levels of completed properties.
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Human Capital
Assessing direct employee scale and key technical personnel stability.
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Geographic Coverage
Assessing risk diversification across various Emirates and strategic sub-markets.
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Property Diversity
Evaluating developer agility across residential, commercial, luxury, and mixed-use spaces.
Reputational and Legal Profile
This category reflects the legal and reputational risks associated with the company's activities. The presence of litigation, negative public information, or signs of instability in the management structure may indicate elevated operational and financial risks.
The assessment considers:
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Duration of Operations
Evaluating historical performance and survival across real estate market cycles.
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Management Stability
Assessing corporate governance robustness, leadership longevity, and structure shifts.
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Litigation & Disputes
Checking active or historical court cases, developer-contractor disputes, and settlement histories.
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Credit & AECB Profile
Monitoring institutional credit rating, payment histories, and Al Etihad Credit Bureau data.
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Audit & Disclosure
Evaluating the transparency of financial disclosures, audit qualities, and related-party disclosure rules.
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Public Track Record
Assessing customer sentiment, public compliance records, and historical payment discipline.
Final Rating Scale
For each indicator, we calculate a score based on established benchmarks. These scores are then aggregated within each category, taking into account their respective weights, to form the company's final integrated scoring.
Scoring Category Definitions
A
Excellent
High financial resilience, massive operational scale, clear history of fast and compliant payouts.
B
Good
Satisfactory financial parameters, stable market position, manageable litigation and dispute volumes.
C
Moderate
Acceptable stability but exposed to concentration risks, potential construction delays, or high leverage.
D
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Default category. Not eligible for funding on the platform.