Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, will become the second-largest shareholder in Emaar Properties, as part of a $2 billion deal that gives the real estate company full control of a major development in the city.
The Sheikh Mohammed bin Rashid Holding Company said in statement Late Thursday, Emaar will buy Dubai Holding’s 50 percent stake in the Dubai Creek Harbor project, and will fund the deal equally in cash and shares.
The deal will make the ruler of Dubai, the second largest investor in “Emaar”, according to the statement, although it was not immediately clear how many shares would be issued or the total stake that Dubai Holding would own, according to the agency. Bloomberg.
PRESS RELEASE
Dubai creek Harbour
“We are pleased to announce that Emaar Properties has fully acquired Dubai Creek Harbour from Dubai Holding for a consideration of AED 7.5 billion to be paid equally in cash and shares of Emaar Properties PJSC, thus ma…https://t.co/d6vgPOY5oh
— Simone RE Dubai (@Simone_Re) August 11, 2022
Dubai already owns a 24 percent stake in Emaar, which developed the world’s tallest tower, the Burj Khalifa.
Shares of “Emaar” fell by 3.5 percent, on Friday morning, in Dubai, while the stock nearly tripled from its lowest level in March 2020 and rose by about 14 percent so far this year.
Emaar halted construction of parts of the Dubai Creek Harbor project in 2020, amid the coronavirus outbreak.
Since then, the city’s real estate market has rebounded strongly, buoyed by factors including an increase in Russian buyers looking to protect their wealth “and Dubai’s smart handling of the pandemic,” according to Bloomberg.
Dubai Holding said: “We look forward to continuing our strategic role in developing the real estate industry in Dubai and supporting the economic growth of the emirate.”
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