Dubai ruler becomes second largest investor in developer Emaar

Agencies | Dubai                                                              

The Daily Tribune – www.newsofbahrain.com

Emaar Properties (EMAR. DU) said yesterday it was buying out its joint venture partner in a Dubai real estate development in a 7.5 billion dirham ($2 bn) deal that will see the Dubai ruler become the developer's second-largest shareholder.

Dubai's Emaar, the emirate's top developer, said in a statement it had reached a deal with Dubai Holding, Sheikh Mohammed bin Rashid Al Maktoum's investment vehicle, to buy its stake in their Dubai Creek Harbour joint venture.

The deal would be equally financed in cash and Emaar shares, making Dubai Holding its second-biggest shareholder, Emaar said. The announcement was made after the stock market had closed. Emaar shares are up 16.5% so far this year to 5.7 dirhams ($1.55) a share, according to data provider Refinitiv.

It was not immediately clear how many shares Dubai Holding would own. Emaar's current biggest shareholder is the Investment Corporation of Dubai, the emirate's sovereign wealth fund, which owns 24.07% or about 1.97 million shares, according to Refinitiv.

Dubai Creek Harbour, a residential, retail and commercial real estate development, is expected to cover 6 square kilometres once completed, according to its website. Development of the project stalled in 2020 due to the pandemic, though the emirate's real estate market has since rebounded strongly.

Emaar, which built the world's tallest tower, the Burj Khalifa in Dubai, said it recorded 3.6 billion dirhams in sales in Dubai Creek Harbour in the first half of the year and 4.2 bn dirhams in all of 2021. Ruler Sheikh Mohammed bin Rashid is also the vice president and prime minister of the United Arab Emirates. Dubai has recently listed shares in state firms with further listings planned as part of an effort to boost activity on its stock market.