Dubai Holding to float $5.9bn residential REIT in landmark listing
Dubai Holding will float 12.5% of its residential leasing portfolio through an initial public offering on the Dubai Financial Market (DFM) this month, launching the Gulf Cooperation Council’s (GCC) largest listed real estate investment trust (REIT) to date.
The Shariah-compliant Dubai Residential REIT holds 35,700 units across 21 communities, with over 140,000 residents. It has a gross asset value of AED21.63 billion ($5.89 billion) and includes premium and affordable properties such as Bluewaters, City Walk, The Gardens, and International City.
The IPO, scheduled for May 13–20, will offer 1.625 billion units, with 10% allocated to UAE retail investors and 90% to institutions. Each successful retail investor will be guaranteed a minimum of 2,000 units, subject to availability. Trading is expected to begin around May 28. Dubai Holding Asset Management will retain 87.5% of the REIT post-listing.
Dividend distributions are planned twice a year from September 2025. The first two payments (September 2025 and April 2026) will total at least AED1.1 billion or 80% of profit before changes in fair value—whichever is higher—subject to board approval.
“The integration of Nakheel and Meydan’s residential portfolios under Dubai Holding last year was a significant milestone in Dubai Residential’s journey that enhanced its status as one of the region’s largest residential leasing platforms,” said Amit Kaushal, Group CEO of Dubai Holding. “This IPO presents investors with a unique opportunity to participate in this success story while benefiting from the wider capabilities and opportunities within the broader Dubai Holding ecosystem.”
Owned by Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, Dubai Holding oversees assets across real estate, infrastructure, tourism, and investment. Its REIT listing is expected to deepen DFM’s liquidity and offer international investors access to stable, income-generating residential assets. In 2024, 85% of new investor accounts on the DFM were opened by foreign nationals, underlining growing global interest in Dubai capital markets.
ANALYSIS: European and UK REITs have faced significant challenges recently, including rising interest rates, declining commercial property valuations, and regulatory uncertainties. Many have traded at substantial discounts to their net asset values, with investors concerned about refinancing risks and weakening yields in sectors like office and retail.
In contrast, Dubai Residential REIT offers exposure to a growing residential rental market underpinned by demographic growth, long-term visa reforms, and high occupancy rates. The portfolio, backed by Dubai Holding, includes 35,700 units across 21 communities, spanning premium and affordable segments.
For European investors, the appeal lies in the REIT’s income visibility, semi-annual dividend policy, and absence of development risk. At a time when many UK and EU REITs are struggling to recover momentum, this listing offers diversification, yield, and access to a tax-efficient market with government backing and strong policy support.
