Investment company Dubai Holding has become the largest shareholder in Emaar Properties after acquiring a 22.27 per cent stake in the developer from the Investment Corporation of Dubai (ICD).
Dubai Holding’s total shareholding in Emaar has increased to 29.73 per cent, the developer said in a statement on Tuesday to the Dubai Financial Market, where its shares are traded.
Dubai sovereign wealth fund ICD has transferred its entire shareholding in Emaar to Emirates Power Investment, a wholly owned subsidiary of Dubai Holding, the statement said.
Dubai Holding has a portfolio of more than Dh500 billion ($136 billion) worth of assets across 10 key sectors, with its real estate division including companies such as Nakheel, Meraas and Dubai Properties.
Emaar said the transaction reinforced its strategic partnership with Dubai Holding, with the companies having collaborated on "key joint ventures" and other initiatives.
One of the largest real estate developers in the Middle East, Emaar has a portfolio spanning residential, commercial, hospitality and retail assets across the Middle East and North Africa, Asia and Europe.
This week, it reported a nearly 35 per cent annual increase in its first quarter profit to about Dh5 billion, as property sales rose despite uncertainty driven by the Iran war.
Revenue for the quarter rose 23 per cent annually to Dh12.4 billion, while property sales reached Dh22.4 billion, up 16 per cent, driven by higher demand and new project launches in the UAE. Revenue backlog as of March 31 stood at about Dh163.4 billion, an increase of 29 per cent year-on-year.
Emaar's master-planned land bank includes about 600 million square feet of mixed-use development options, of which about 317 million square feet are in the UAE. "This land reserve is strategically positioned to support the group’s ongoing expansion and long-term value creation for its shareholders," the company said in its earnings report.
The latest transaction represents a strategic investment in Emaar, Dubai Holdings said in a separate statement. The move highlights its "confidence in the company’s market position, asset quality and long‑term growth prospects, as well as in the enduring fundamentals of Dubai’s economy and real estate sector", Dubai Holdings added.
Dubai's property market, which was booming at the start of the year, has largely weathered any immediate major fallout from the Iran war.
Transactions in the three months to the end of March hit Dh252 billion, a 31 per cent annual increase, the Dubai Media Office said this month, referring to data from the Dubai Land Department (DLD). A total of 60,303 property transactions were signed, marking a 6 per cent year-on-year rise, among 718,160 deals recorded during the quarter, the DLD said.
