Emaar Properties said that it will acquire the shares of its partner in a joint venture to develop real estate in Dubai in a deal worth 7.5 billion dirhams (two billion dollars), and that would make Dubai ruler Mohammed bin Rashid Al Maktoum the second largest shareholder in the company.
Emaar, the largest real estate developer in Dubai, said in a statement that it had reached an agreement with Dubai Holding, the investment vehicle of the ruler of Dubai, to buy its stake in their joint venture to develop Dubai Creek Harbor. Emaar said the consideration would be paid in equal parts in cash and shares in Emaar, making Dubai Holding its second largest shareholder.
The announcement came after the stock exchange closed. Emaar shares are up 16.5 percent so far this year to 5.7 dirhams ($1.55) per share, according to data provider Refinitiv. It is not yet clear how many shares Dubai Holding will hold. Currently, the largest shareholder in Emaar is the state-run Investment Corporation of Dubai, the emirate’s sovereign wealth fund, which owns 24.07 percent, or about 1.97 million shares, according to Refinitiv.
Rothschild & Co. said it was the sole financial advisor to Dubai Holding on the deal. Dubai Creek Harbor, a residential and commercial real estate project, is expected to cover six square kilometers upon completion, according to its website. Development of the project was halted in 2020 due to the Corona pandemic, although the real estate market in the emirate has rebounded strongly since then.
Emaar, which built the world’s tallest tower, Burj Khalifa in Dubai, said it recorded sales of 3.6 billion dirhams at Dubai Creek Harbor in the first half of the year, and 4.2 billion dirhams in the whole of 2021. Mohammed bin Rashid is also the Vice President and Prime Minister of the UAE. Dubai recently listed shares in government companies on the stock exchange, with more listings planned as part of efforts to boost activity in the stock market.
