Dubai Holding is one of the emirate’s biggest real estate names.
Dubai Holding Set to Launch Sharia-Compliant REIT Through Upcoming IPO
Dubai: Dubai Holding is preparing to initiate an Initial Public Offering (IPO) to introduce its Real Estate Investment Trust (REIT) fund.
The new REIT will adhere to Sharia principles and marks a notable expansion for one of Dubai’s most prominent entities in real estate development and investment, encompassing major players such as Nakheel, Meydan, and Meraas.
This IPO will be executed through a fully-owned entity known as Dubai Residential REIT.
The subscription window is expected to run from May 13 to May 20.
Dubai Residential REIT encompasses a portfolio featuring 35,700 residential units, housing more than 140,000 residents across 21 different communities.
Once listed on the Dubai Financial Market (DFM), it is anticipated that this REIT will become the largest of its kind in the GCC region, with a gross asset value of AED 21.63 billion—nearly double the total gross asset value of the five largest REITs currently operating in the region.
“The REIT is supported by Dubai Holding’s expansive residential ecosystem, which is underpinned by one of the largest land holdings in the Emirate,” according to an official release.
REITs—Real Estate Investment Trusts—allow investors to gain exposure to a portfolio of income-generating properties, and the DFM currently hosts REIT offerings from entities such as Al Mal Capital.
Dividend Strategy for Dubai Residential REIT
Dubai Residential REIT is set to adopt a semi-annual dividend payout strategy, with distributions scheduled for April and September each year, commencing in September 2025.
The REIT aims for its first two dividend payouts to be the greater of the following:
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AED 1.10 billion; or
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80% of profits before fair value changes in investment properties, based on financial performance for the year ending December 31, 2025.
Growth Through Integration and Scale
Amit Kaushal, Group CEO at Dubai Holding, emphasized the importance of recent structural changes: “The unification of Nakheel and Meydan’s residential assets under Dubai Holding last year marked a key chapter in the journey of Dubai Residential, positioning it among the largest residential leasing platforms in the region.”
He added, “Dubai Holding Asset Management’s leasing arm—Dubai Residential—has a proven track record of delivering high-quality communities that address the shifting needs of Dubai’s diverse population.”
Kaushal also noted that, “The IPO provides a compelling opportunity for investors to be part of this success while tapping into the broader capabilities and strengths of the Dubai Holding ecosystem.”
