The merger between Nakheel and Meydan – two of Dubai’s largest developers – under the Dubai Holding authority will make the companies more competent and better positioned to make the most of the soaring demand for real estate in the emirate, property experts said.
Sheikh Mohammed bin Rashid, Vice President, and Ruler of Dubai announced the move on Saturday. The conglomerate, owned by the Dubai government, also includes Jumeirah Group, Dubai Properties, and Tecom Group in its portfolio.
“As the emirate’s real estate market continues to expand and mature, I can see that this is a smart move as it will be more efficient for these huge businesses to merge and sit under the Dubai Holding umbrella,” said Simon Baker, managing director of Dubai real estate agency haus & haus, told The National. “This means they will be able to consolidate resources, increase market share and capitalise on synergies to better exploit the current soaring demand.”
Dubai’s property market rebounded strongly from the coronavirus pandemic slowdown on the back of government measures and higher oil prices. In 2023, Dubai registered a record 17 per cent annual jump in real estate transactions to 1.6 million across market segments, the latest data from the Dubai Land Department show. The overall number included real estate deals from investments, mortgages and sales transactions to rental contracts recorded last year, up from about 1.3 million transactions reported in 2022. Experts also said the merger may lead to improved quality and a more streamlined delivery of master projects across the city.
Nakheel’s master developments span 15,000 hectares and include The Palm Jumeirah, The World Islands, Jumeirah Islands, Jumeirah Park, Jumeirah Village, Al Furjan, The Gardens, Discovery Gardens, Jebel Ali Village and Nad Al Sheba Villas. Nakheel also owns a diverse range of retail and hospitality projects across Dubai. The company’s portfolio includes The St Regis Dubai, The Palm, Premier Inn Ibn Battuta Mall, Avani Ibn Battuta, Riu Dubai and the Centara Mirage Beach Resort Dubai.
Meanwhile, the Meydan Group’s portfolio includes the Meydan Racecourse, which offers a full season of horse racing, as well as real estate projects such as Mohammed bin Rashid City.
In terms of global competitiveness, this merger will allow for infrastructure to be scaled up more easily. The Nakheel-Meydan merger is also expected to advance the goals of the Dubai Economic Agenda D33 plan, which was launched in January last year. D33 aims to double the size of Dubai’s economy, with a target of reaching Dh32 trillion ($8.713 trillion) by 2033, and establishing the emirate among the top three global cities. The 10-year program also seeks to establish Dubai as the world’s safest and most connected city, as well as making it a preferred destination for major international companies and investments.
Incorporating Nakheel and Meydan into Dubai Holding aligns with the emirate’s Urban 2040 plan, which aims to revitalise the city’s key urban areas such as Deira, Bur Dubai, Downtown Dubai and Business Bay, Prathyusha Gurrapu, head of research and consultancy at Cushman and Wakefield, told media.
“It helps with Dubai’s vision of being the leading global property market by creating holistic and competitive real estate product offerings across asset classes under the single strong governance of Dubai Holding,” Ms Gurrapu added.
