Dubai Investments eyes IPO for DIP to tap into real estate boom

Dubai: Dubai Investments PJSC is reportedly exploring a public listing for its unit that manages one of Dubai’s largest mixed-use developments, aiming to tap into the city’s booming property market.

The company plans to potentially sell up to a 25% stake in Dubai Investments Park Development Co. by February, Chief Executive Officer Khalid Bin Kalban revealed in a Bloomberg interview.

"We will use the proceeds to expand, and we have plans for other parks," Bin Kalban said.

Sources familiar with the matter also indicated to Bloomberg that the development could be valued between Dh8 billion and Dh10 billion ($2.2 billion–$2.7 billion), though Bin Kalban declined to comment on the valuation.

Dubai Investments Park spans 2,300 hectares (8.9 square miles) and integrates industrial, commercial, and residential areas. Bin Kalban noted that occupancy exceeds 90%, with multiple lease agreements in place and opportunities for rental growth.

The wider Dubai property market has seen rapid gains in recent years, fueled by relaxed visa policies and rising demand from end-users. Residential prices have surged more than 70% over the past four years, driving construction and development activity across the emirate.

Beneficial IPO trends

Dubai Investments, with interests in around 30 companies spanning manufacturing, real estate, and financial services, has benefited from these trends, with its shares up 32% this year versus a 15% rise in the Dubai benchmark index. The Investment Corporation of Dubai, the emirate’s sovereign wealth vehicle, remains the firm’s largest shareholder.

The real estate rally has encouraged other listings in the UAE. In May, Dubai Holding’s subsidiary, DHAM Investments LLC, raised Dh2.1 billion ($584 million) through the initial public offering of the Dubai Residential REIT, the GCC’s largest listed residential-focused REIT.

It also plans to list its retail property portfolio. Construction and property-related companies including ALEC Engineering & Contracting LLC, Arabian Construction Co., and online property platform Dubizzle are also preparing IPOs.

Bin Kalban said Dubai Investments is evaluating options for strategic investors and private placements. He added that other subsidiaries, such as Emirates Glass LLC and district cooling operator Emicool LLC, may consider public listings in the future as they grow.

Established in 1997, Dubai Investments Park is home to over 160,000 residents and features warehouses, hotels, retail centers, schools, and healthcare facilities. The development is strategically located near Al Maktoum International Airport, which is undergoing a $35 billion expansion.