Real Estate

Dubai Holding to list real estate investment trust

May 5, 2025, 4:50 PM

People walk towards Bluewaters Island, one of the developments in Dubai Residential REIT's $5.7bn portfolio

First DFM IPO of 2025
12.5% of structure for sale
Enthusiasm for REITs cools

Dubai Holding is to list its residential real estate investment trust (REIT), shrugging off local investor scepticism towards the structures and becoming the first initial public offering (IPO) on the Dubai stock exchange this year.

The investment conglomerate owned by Sheikh Muhammed bin Rashid Al Maktoum, the emirate’s ruler, said on Monday that it will float 12.5 percent of its Dubai Residential REIT on the Dubai Financial Market (DFM) by the end of the month.

The listing – set to raise funds through the sale of 1.63 billion shares – will mark the first IPO on the DFM in 2025.

The move comes amid tepid investor sentiment toward REITs regionally. Emirates REIT, which debuted on Nasdaq Dubai in 2014 at $1.36 per share, was trading at just $0.50 on Monday, a decline of more than 63 percent.

ENBD REIT, managed by Emirates NBD Asset Management, has similarly slumped – down by over half since its 2017 listing.

“We fully understand the perception of REITs in this region,” said Malek Al Malek, CEO of Dubai Holding Asset Management. “But we believe the maturity of the market, particularly in the residential segment, offers a compelling investment opportunity.”

REITs are designed to allow smaller investors to access big-ticket property propositions.

The Dubai Residential REIT manages a portfolio of 35,700 residential units worth AED21 billion ($5.7 billion), across prime developments including City Walk, Bluewaters, Meydan Heights and International City. It reported total revenues of AED1.8 billion in 2024.

Dubai Holding said the vehicle will be the largest of its kind in the GCC, surpassing the combined size of established players Emirates REIT, ENBD REIT, Al Mal Capital REIT, Riyad REIT, and Jadwa REIT Al Haramain Fund.

Emirates NBD Capital is arranging the residential REIT, with support from Morgan Stanley and Citigroup Inc.

Dubai’s real estate market is showing resilience against global economic headwinds. The emirate has recorded AED114.08 billion in transactions so far this year – up nearly one third from the same period in 2024, according to data from Springfield Properties. The number of transactions jumped 23 percent year-on-year to 42,269.

Al Malek said he expects that increase to continue based on the population growth of the emirate, which is currently home to over three million people, as well as residency visa programmes and business-friendly legislation.

Dubai Holding, which counts Nakheel and Meydan among its major subsidiaries following their merger into the group in March 2024, plans to use proceeds from the IPO to fund new projects and asset acquisitions. Al Malek highlighted the districts of Jebel Ali and Al Barsha as potential sites for development.

The company is also considering further listings. In 2022 it raised AED1.7 billion through the IPO of TECOM Group, its business park and commercial property arm. Dubai Holding is rumoured to be considering bundling its malls and other commercial assets into a separate entity for a listing.

“Exploration and assessment on different businesses is an ongoing activity for us,” Al Malek said. “Whether that translates into IPOs or other investment activity will be communicated when decisions are made.”