Real Estate Investment Fund to Launch IPO

Dubai Holding is launching an IPO for its Sharia-compliant Dubai Residential REIT, a significant move in the real estate investment space. The IPO, running from May 13 to May 20, will offer investors a chance to participate in the GCC's largest listed REIT. The REIT boasts a portfolio of 35,700 residential units across 21 communities, housing over 140,000 residents, with a gross asset value of Dh21.63 billion.

The Dubai Residential REIT will distribute semi-annual dividends in April and September, starting in September 2025. The initial dividend payments are expected to be the higher of Dh1.10 billion or 80% of the profit before changes in fair value of investment property. This REIT benefits from Dubai Holding's extensive residential ecosystem, which includes assets from Nakheel and Meydan.

The IPO will offer 1.62 billion units, representing 12.5% of the total issued capital. The offering is divided into two tranches: a retail offer for UAE retail investors and a tranche for institutional investors. The retail tranche is allocated 10% of the units, with a guaranteed minimum of 2,000 units per successful subscriber. The institutional tranche will receive 90% of the units.

Dubai Holding Asset Management will retain 87.5% of the REIT post-IPO. This IPO provides investors with a unique opportunity to invest in Dubai's real estate market and benefit from the broader capabilities and opportunities within the Dubai Holding ecosystem.