Nakheel and Meydan Real Estate Development Company in Dubai merge under the umbrella of Dubai Holding Group (Reuters)
Nakheel and Meydan Real Estate Development Company in the Emirate of Dubai will merge under the umbrella of Dubai Holding Group, according to the Emirates News Agency (WAM) yesterday, Saturday.
The ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, directed the two companies to merge under his investment arm, Dubai Holding.
It is envisaged that this integration will pave the way for the creation of a more financially efficient entity with assets worth “hundreds of billions” and expertise covering various sectors, and capable of competing at the regional and global levels, according to Bloomberg.
The merger of Nakheel and Meydan into Dubai Holding represents a major shift in the landscape of the real estate and development sectors in Dubai.
As part of the restructuring, the boards of directors of both Nakheel and Meydan will be abolished, WAM reported.
The real estate market in Dubai has recorded a significant increase in demand in recent years (European)
Real estate market recovery
According to Bloomberg, the real estate market in Dubai has witnessed a noticeable increase in demand in recent years, driven by the influx of individuals from all over the world.
Although mortgage rates have reached their highest levels in two decades, real estate prices in the city are approaching record levels, confirming Dubai's recovery from a prolonged recession.
Nakheel, famous for its distinctive projects such as palm-shaped islands, has witnessed remarkable success in the market, as last year it launched a project that received great attention, for which buyers lined up in scorching temperatures to buy homes worth $5 million.
Bloomberg notes that this recovery represented a transformation for Nakheel, which faced major challenges during the real estate collapse in 2009, which pushed Dubai almost to the brink of bankruptcy at the time.
However, through strategic consolidation and cost-cutting measures, Nakheel has emerged stronger, positioning itself as a major player in Dubai's booming real estate sector.
Nakheel is famous for its distinctive projects, such as palm-shaped islands (Reuters)
Meanwhile, Meydan, another prominent state-owned real estate developer, was also navigating its financial landscape.
In 2021, Meydan's debt totaled about $4 billion, of which $2.6 billion required restructuring, according to individuals familiar with the matter at the time.
The merger of Nakheel and Meydan into Dubai Holding, according to Bloomberg, represents a strategic maneuver to benefit from synergies and streamline operations within Dubai's development ecosystem.
Source: Al Jazeera + agencies