Emaar May Have to Raise Funds After Merger, Nomura Analyst Says

Emaar Properties PJSC, the Dubai property developer that announced a plan to combine with part of Dubai Holding LLC last week, may have to raise funds if it proceeds with the transaction, Nomura Holdings Inc. said.

Emaar, the Middle East’s biggest developer, is in talks to merge with three units of Dubai Holding, a state-controlled organization that’s also based in the sheikhdom. The deal would be the largest in the Dubai property industry this year.

“Emaar may have to raise equity, and possibly a lot, to support its private development counterparts,” Chet Riley, a Dubai-based analyst at Nomura, wrote in a note to clients.