#Dubai Ruler Sheikh Mohammed Gets Chunk of Developer Emaar in $2 Billion Deal - Bloomberg

Dubai Ruler Sheikh Mohammed Gets Chunk of Developer Emaar in $2 Billion Deal - Bloomberg

Dubai’s ruler is set to become the second-largest shareholder in Emaar Properties PJSC as part of a 7.5 billion dirham ($2 billion) deal that will hand the real estate firm full control of a key development in the city.

Emaar will buy Dubai Holding’s 50% stake in the the Dubai Creek Harbour project and finance the deal equally in cash and shares, Sheikh Mohammed bin Rashid Al Maktoum’s holding firm said in a statement late on Thursday.

The deal will make Sheikh Mohammed Emaar’s second-biggest investor, according to the statement, though it wasn’t immediately clear how many shares will be issued or the total stake Dubai Holding will own. Dubai already owns a 24% stake in Emaar -- which is the developer of the world’s tallest tower, Burj Khalifa.

Emaar shares fell as much as 3.5% Friday morning in Dubai. The stock has almost tripled from a March 2020 low and is up about 14% so far this year.

Emaar had suspended construction of parts of the Dubai Creek Harbour project in 2020, amid the coronavirus outbreak. The city’s property market has since rebounded strongly, helped by factors including an increase in Russian buyers looking to safeguard their wealth and Dubai’s nimble handling of the pandemic.

“We look forward to continuing our strategic role in developing and growing the real estate industry in Dubai and supporting the economic growth of the emirate,” Dubai Holding said.

Rothschild & Co. acted as sole financial adviser to Dubai Holding on the transaction.