Dubai Holding Plans Major Residential REIT Listing Amid Real Estate Boom
An investment conglomerate owned by Dubai’s ruler is preparing to list a portfolio of residential properties on the local stock exchange, aiming to leverage the emirate’s thriving real estate market.
According to a statement released on Monday, Dubai Holding intends to bundle the assets into a real estate investment trust (REIT). The company plans to offer approximately 12.5% of Dubai Residential REIT in the upcoming deal.
The REIT manages 35,700 residential units across Dubai and is set to become one of the largest of its kind in the region upon listing. With a gross asset value of 21.6 billion dirhams ($5.88 billion), it nearly doubles the combined total of the five largest REITs in the area, the firm stated.
This listing marks Dubai’s first of the year, arriving amid global market volatility fueled by U.S. President Donald Trump’s expansive tariffs. While Dubai’s property prices have climbed significantly in recent years, analysts caution that tariff uncertainties and declining oil prices could introduce risks.
GCC’s First Residential Leasing-Focused REIT
Dubai Residential REIT will be the Gulf Cooperation Council’s (GCC) first pure-play listed entity focused solely on residential leasing, according to the company. It anticipates distributing dividends in two tranches, totaling either 1.1 billion dirhams or 80% of its annual profit (whichever is higher) for the year ending December.
The subscription period for the offering is scheduled from May 13 to May 20. Emirates NBD Capital, Morgan Stanley, and Citigroup Inc. are serving as joint global coordinators, while Abu Dhabi Commercial Bank, Arqaam Capital, and First Abu Dhabi Bank are joint bookrunners.
Additional Commercial Property Listing in the Works
Separately, Bloomberg News reports that Dubai Holding is also planning to list a commercial property portfolio, including malls and other assets. This REIT, valued at 280 billion dirhams ($76 billion), encompasses luxury hotels and theme parks.
Dubai has generated roughly $9 billion from its 2021 privatization initiative, which included listings of a taxi company, a utility provider, and a toll operator. As part of this program, state-backed Investment Corp. of Dubai is also exploring a share sale in construction firm ALEC Engineering & Contracting LLC.
