Nakheel and Meydan merge with Dubai Holding 

Reuters

Two of Dubai’s largest state-backed developers – Nakheel and Meydan – will merge into Dubai Holding, the investment vehicle of Dubai’s Ruler Sheikh Mohammed bin Rashid Al Maktoum, to create a new global economic entity. 

Nakheel and Meydan will become part of Dubai Holding under the leadership of Sheikh Ahmed bin Saeed Al Maktoum, with the board of the two companies being abolished, the UAE’s state-owned Wam news agency reported.

The two companies under Dubai Holding’s umbrella will develop a highly diversified conglomerate operating in several sectors, including real estate, tourism, hospitality, leisure and entertainment and investments.

“The goal is to create a more financially efficient entity, owning assets worth hundreds of billions and comprising global expertise across various sectors with which we can compete regionally and globally,” Sheikh Mohammed said.

“We are optimistic about an upcoming phase where we will multiply our growth and compete with our ambitions,” he added.

Created in 2004, Dubai Holding’s portfolio of comprises includes Jumeirah Group, Dubai Properties and Tecom Group, the owner and operator of 10 sector-focused business clusters.

Nakheel and Meydan have launched several projects in various sectors, including real estate, retail, hospitality, food and beverage, leisure and entertainment, and healthcare.

Dubai’s state-run conglomerates have $78 billion in loan repayments due over the next few years, according to new research, but analysts have told AGBI the emirate is on track to cover the debts. 

Juili Pargaonkar, a global rating analyst at S&P, pointed to the Dubai government’s “improving fiscal flexibility”, attributing it to the formation of the Dubai Investment Fund to oversee government investments and the Debt Management Office, as well as “declining [public sector] debt and active monetisation of assets”.