Dubai Holding’s residential real estate investment trust (REIT), backed by the ruler of Dubai, surged in its market debut after raising approximately USD 584 million in an initial public offering. The strong performance reflects continued investor confidence in the emirate’s buoyant property sector and underscores renewed momentum in Dubai’s equity markets.
The listing represents Dubai’s first IPO since December and the second in the UAE this year. It highlights a broader push by government-backed entities to deepen capital markets and capitalise on the robust recovery in the real estate sector, driven by population growth, residency reforms, and foreign investment.
The REIT offered a 12.5% stake to investors, priced between AED 1.07 and AED 1.10 per unit, valuing the vehicle at as much as USD 3.9 billion. The fund is expected to pay out a minimum of AED 1.1 billion in dividends next year, attracting interest from both retail and institutional investors.
Investor demand was strong during the offering, with units surging sharply upon listing. The successful IPO reflects investor appetite for income-generating property assets, particularly within Dubai’s residential sector, which has witnessed a surge in demand over the past two years.
The transaction also forms part of a wider strategy by Dubai Holding to monetise its real estate portfolio and boost liquidity in the domestic capital markets. The company is also exploring the potential listing of another vehicle that would consolidate its retail and commercial holdings, including shopping malls.
Global banks including Citi, Morgan Stanley, and Emirates NBD acted as joint global coordinators and bookrunners for the transaction. The REIT’s listing adds to the growing pipeline of state-linked IPOs expected in the UAE as authorities seek to attract international capital and enhance market transparency.
