DUBAI—In a move that’s got the emirate’s financial scene buzzing, Dubai Holding, the sprawling investment outfit tied to Dubai’s ruler, announced plans to list a hefty chunk of residential real estate as a trust on the Dubai Financial Market. The deal, unveiled on May 5, 2025, is poised to ride the wave of Dubai’s red-hot property market, where cranes dot the skyline and demand for homes keeps climbing.
The new fund, dubbed Dubai Residential REIT, is no small fry. It’s a sharia-compliant, income-generating setup, packed with a portfolio that makes it one of the biggest residential property owners in the city. Dubai Holding is putting up 12.5% of the REIT’s units for grabs in an initial public offering, a stake that translates to 1.625 billion units. The listing, expected to hit the bourse next week, marks the first IPO in Dubai this year and could set a high bar as the largest listed REIT in the Gulf Cooperation Council. It’s also the only one in the region laser-focused on residential leasing.
Behind the scenes, Dubai Holding’s subsidiary, DHAM REIT Management, is steering the ship. The conglomerate, a powerhouse in the emirate’s economy, is betting big on the REIT to cash in on Dubai’s real estate frenzy. The city’s property market has been on a tear, fueled by an influx of expats, relaxed visa rules, and a post-pandemic boom that’s made it a magnet for global investors. The REIT’s portfolio, though not detailed in the announcement, is said to span a wide swath of residential assets, primed to churn out steady rental income.
The IPO’s structure is designed to appeal to both local and international investors. As a closed-end fund, the REIT will lock in its capital, focusing on long-term gains rather than quick flips. Its sharia-compliant status, adhering to Islamic finance principles, broadens its appeal in a region where such funds draw heavy interest. The listing is expected to shake up the Dubai Financial Market, which has been itching for big-ticket offerings to match the emirate’s economic ambitions.
Dubai Holding’s move comes as the emirate doubles down on its status as a global financial hub. The REIT’s debut follows a string of high-profile listings in recent years, with the government pushing to deepen the capital markets. The announcement didn’t spell out the valuation or pricing details, but market watchers are already crunching numbers, expecting a hefty tag given the portfolio’s scale and the city’s property surge.
The offering comprises 1.625 billion units, representing 12.5% of Dubai Residential REIT. The fund is structured as a sharia-compliant, income-generating, closed-end real estate investment trust. The listing is slated for the Dubai Financial Market, with the IPO set to launch in the week following May 5, 2025.