The merger of Dubai’s top master developers Nakheel and Meydan will diversify offerings for local and foreign investors and also ensure mega projects like Palm Jebel Ali rise to their fullest potential.
Merged and brought under the umbrella of Dubai Holding, Dubai could see launches of more iconic, landmark and uber-luxury projects from the entity as the merger is crucial to realise the goals of the Dubai Economic Agenda (D33) and Dubai 2040 Urban Master Plan to place the city at the global map.
With hundreds of billions of dirhams worth of assets under their belt, the developers will be key players in terms of mega community developments as well as embarking on mega residential, commercial, hospitality and retail projects in the emirate.
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On Saturday, Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced merging Nakheel and Meydan under the umbrella of Dubai Holding to consolidate and enhance the emirate’s economic growth.
One of the largest master developers and developers of iconic Palm Jumeirah and Palm Jebel Ali, Nakheel’s role in the development of the emirate’s real estate is undeniably highly vital. Just to put it in perspective, it has added 410km to Dubai’s coastline, 15,000 hectares of master development and over 700,000 people live in communities developed by Nakheel.
Cherif Sleiman, chief revenue officer, Property Finder, said the merger is “opening doors for much more integration across sectors and collaboration within the industry itself.”
“We believe this will further accelerate the availability of diverse project portfolios that cater to a constantly growing demand for various types of properties. Especially with a growing demand for integrated community living. As a result, we expect property prices to stabilise in the mid-term,” said Sleiman.
Imran Farooq, CEO of Samana Developers, said the merger “will give a fresh boost to Dubai’s economy and the real estate sector”.
“The inclusion of Dubai’s top developers under Dubai Holding will have an immediate impact on the overall Dubai real estate sector, which will boost the attractiveness of the property market for local, regional and international investors.”
Global ambitions
As the profile of the developers continues to expand at a rapid pace in the local real estate market, they are also looking at international markets. Last week, Abu Dhabi-based property developer Eagle Hills was named to develop a mega mix-used project in Hungary with a capital investment of 5.8 billion (Dh23.2 billion).
A statement issued by the Dubai Media Office on Saturday said the Board of Directors of the two entities will be abolished and the companies will be “forming a global economic entity” which will be run under the leadership of Sheikh Ahmed bin Saeed Al Maktoum, who already heads some of Dubai’s most prestigious entities such as Emirates Group.
“The goal is to create a more financially efficient entity, owning assets worth hundreds of billions, and comprising global expertise across various sectors with which we can compete regionally and globally, achieving our national objectives, and realising the Dubai Economic Agenda D33,” said Sheikh Mohammed.
Industry players are not ruling out that Dubai entities could stamp their authority on the global scene also, especially the Eastern Europe markets which have been on the road of some local developers.