Dubai Holding Prepares for the Public Listing of its Residential REIT

Dubai Holding announced its plans to raise up to AED 1.79 billion through an initial public offering (IPO) of its Residential Real Estate Investment Trust (REIT). The institutional subscription period for the Dubai Holding REIT IPO will close on May 20, with trading on the Dubai Financial Market (DFM) expected to begin around May 28.

This event marks the first REIT listing in the UAE under the country’s recently updated regulations.

Dubai Holding, through its subsidiary Dham Investments, is listing the REIT in Dubai and focuses exclusively on income-generating residential leasing in the Dubai property market. Dham offers 1.63 billion units (12.5% of issued unit capital) and retains the remaining 87.5% stake. The IPO price range is set between AED 1.07 and AED 1.10 per unit.

Dubai Holding expects the REIT to distribute at least AED 1.1 billion in dividends for the year 2025, making it a key selling point for institutional investors interested in Dubai real estate investment.

Who Can Participate and Invest?

A majority 90% of the offered residential units are reserved for institutional investors. This leaves the remaining 10% open for the participation of retail investors.

Individuals interested in capitalizing on the Dubai property boom can take the following steps to participate and invest in the Dubai Holding IPO:

• Subscribe between May 13 and May 20.
• Fill out a single application and submit it through a bank or broker via ADCB, ADIB, Al Maryah Community Bank, CBD, Emirates Islamic, Emirates NBD, FAB, or Mashreq.
• Generated a valid National Investor Number (NIN) on the Dubai Financial Market website or app.
• Appoint a licensed broker to manage trades.

Steps after subscription include:

• A minimum investment of 2,000 units per individual.
• Final offer prices announcement on May 21.

• Final unit allocation and refunds processed by May 26.
• Trading begins on May 28 on the Dubai Financial Market.

It’s no secret that the Dubai real estate market has experienced an impressive, sustained growth in the last few years, and the Dubai Residential REITs portfolio in particular benefits from strategic locations in highly sought-after areas. Thus, this IPO stands as a highly appealing opportunity for investors to enhance their real estate investments and manage a truly promising income-generating real estate portfolio.

Property market trends in Dubai foresee a solid performance for this highly-anticipated public listing of REIT in the UAE capital markets; as many institutional and individual investors show interest in real estate stocks in Dubai.

Key Dates and IPO Mechanics

• May 13: IPO subscription opens
• May 20: IPO subscription closes
• May 21: Final IPO price announced
• May 26: Unit allotment and refunds
• May 28: Trading begins on Dubai Financial Market

Participants should note that during the subscription period, investors commit to buying units at a to-be-finalised price. Upon oversubscription, investors may receive fewer units than initially requested. Lastly, the final listing price may differ from the subscription range.

For further insights and comprehensive real estate advisory services please contact Driven Properties at +971800374836