Dubai Holding, a diversified global investment company, is listing its Dubai Residential Reit, a sharia-compliant, income-generating real estate investment trust on the Dubai bourse, in the first initial public offering in Dubai this year.
The move comes amid a continued boom in the emirate's property market. Dham Investments, a wholly owned subsidiary of Dubai Holding, is offering 1.625 billion units (12.5 per cent of Dubai Residential Reit) to investors in an initial public offering on the Dubai Financial Market, the company said in a statement on Monday.
The IPO subscription period is set to run from May 13 to May 20, with the Reit expected to begin trading on the bourse on around May 28. The decision on the final offer price will be announced on May 21.
Ninety per cent of the offer units will be allocated to professional investors, with 10 per cent going to individual subscribers and other investors.
Dham Investments will retain 87.5 per cent of Dubai Residential Reit’s issued unit capital following the offering.
“The decision to launch the IPO of Dubai Residential Reit marks a natural evolution in our story, offering investors a unique opportunity to participate in the GCC’s largest and first pure-play listed residential leasing-focused Reit,” said Malek Al Malek, group chief executive of Dubai Holding Asset Management and chairman of the investment committee of Dham Reit Management.
“With a diversified portfolio valued at over Dh21 billion, this milestone enables us to expand our impact, deliver sustainable unit holder returns, and continue shaping the future of urban living in Dubai.”
Dubai Residential Reit portfolio
Dubai Residential Reit manages 35,700 residential units in 21 communities, including Bluewaters Residences, City Walk Residences, The Gardens, International City and Al Khail Gate. The portfolio has a total gross asset value of Dh21.6 billion ($5.88 billion), which is almost double the combined value of the five largest Reits in the region, the firm said.
It expects to pay dividends over two tranches, in September and April 2026, for a total of either Dh1.1 billion or 80 per cent of profit for the year ending December, whichever is higher.
The latest announcement comes as the Dubai property market continues to perform strongly amid higher demand from buyers. Government initiatives, such as residency permits for retired and remote workers, the expansion of the 10-year golden visa programme and overall growth in the UAE’s economy amid diversification efforts have supported the property market.
Dubai registered 111 sales of homes valued at more than $10 million in the first quarter of 2025, up 5.7 per cent on an annual basis, with a total value of $1.9 billion, Knight Frank said in a recent report.
The growing population in the emirate has also supported the market. By the end of March, the population had risen to 3.92 million, with 89,695 new residents added in the first three months of the year, an average of about 1,000 people a day.
The net population increase for 2024 was 170,478, averaging less than 500 a day, ValuStrat said in its latest report.
The company aims to "capitalise on favourable real estate dynamics, with a clear road map for future strong performance", Mr Al Malek said on Monday. This includes the launch of new developments and projects, as well as asset acquisition from third parties.
IPO plans for more units
Dubai Holding also plans to list more of its businesses, Mr Al Malek said. "This definitely is an ongoing activity for us. Will it translate into IPO or other investment activity? Definitely ... but this will be communicated at the time where a decision is made on any of the businesses that we see going for [an] IPO," he said, without elaborating.
Dubai Holding plans to list a commercial property portfolio, including malls and other commercial assets, in a separate deal, Bloomberg News reported on Monday. It listed its subsidiary Tecom Group in 2022.
Listings boom
There has been a listings boom in the UAE in the past few years, as the Arab world’s second-largest economy continues to grow amid diversification efforts.
There were seven IPOs across the UAE last year, including Talabat Holding, major retailer Lulu Group, ADNH Catering, NMDC Energy and Alef Education. IPOs in the UAE accounted for 47 per cent, or $6.2 billion, of total Gulf proceeds last year, PwC said in a report.
Overall, 2024 marked the highest Gulf IPO volumes on record, with 53 listings across the region and a total of $13.2 billion raised, the report added.
Stock markets in the UAE are expected to receive between six and eight IPOs this year, with companies raising up to $10 billion in proceeds amid strong investor appetite for new listings in the country, Emirates NBD Capital chief executive Hitesh Asarpota recently told The National.
Dubai Investments, a diversified company in which the sovereign wealth fund Investment Corporation of Dubai holds a stake, also plans to take some of its subsidiaries public, according to its chief executive Khalid bin Kalban.
