Dubai Holding has announced plans to launch an Initial Public Offering (IPO) for its Real Estate Investment Trust (REIT) fund. This Sharia-compliant REIT signifies a significant advancement from one of the largest players in Dubai’s real estate development and investment sector, which includes notable names like Nakheel, Meydan, and Meraas.

The IPO will be issued through the wholly-owned subsidiary, Dubai Residential REIT. The subscription period is expected to occur from May 13 to May 20. The assets of the Dubai Residential REIT comprise 35 700 residential units, which are home to over 140 000 residents across 21 communities. When it debuts on the Dubai Financial Market (DFM), it is anticipated to be the largest listed REIT in the Gulf Cooperation Council (GCC), with a gross asset value of Dh21.63 billion. This amount is nearly double the combined gross asset value of the five largest REITs in the region.

According to the statement from Dubai Holding, “The REIT benefits from the broader residential ecosystem curated by Dubai Holding, a global investment leader with one of the largest land banks in the Emirate of Dubai.”

The Dubai Residential REIT has outlined a semi-annual dividend distribution policy, which will commence in September 2025. The total of its first two dividend payments is expected to be either Dh1.10 billion or an amount equivalent to 80% of its profit for the period before any changes in the fair value of investment property for the financial results ending December 31, 2025.

Amit Kaushal, Group CEO of Dubai Holding, remarked that the integration of Nakheel and Meydan’s residential portfolios under Dubai Holding last year marked a crucial milestone in enhancing the status of Dubai Residential as one of the largest residential leasing platforms in the region. He stated, “The IPO presents investors with a unique investment opportunity to participate in this success story while benefiting from the wider capabilities and opportunities within the broader Dubai Holding ecosystem.”

The IPO will consist of 1.62 billion units, representing 12.5% of the issued unit capital of Dubai Residential REIT. The offering is divided into two tranches: the first tranche is aimed at retail investors and National Investor Number (NIN) holders with DFM, accounting for 10% of the offer, or 162.5 million units. Each successful subscriber in this tranche will be guaranteed a minimum of 2,000 units, as long as the total does not exceed the tranche size.

The second tranche will cater to institutional investors and will comprise 90% of the offer units, totaling 1.46 billion units. Following the IPO, DHAM Investments will retain 87.5% of Dubai Residential REIT’s issued capital. Malek Al Malek, Group CEO of Dubai Holding Asset Management, emphasized that the IPO represents a natural evolution of their story, providing investors with an opportunity to engage in the GCC’s largest and first pure-play listed residential leasing-focused REIT.