Dubai's Union Properties set to pay dividend for first time in 11 years

Dubai: After more than a decade without shareholder payouts, Union Properties is set to revive dividend payments following a year of improved earnings, record cash balances and renewed financial stability.

The proposed Dh3 fils per share cash dividend marks a symbolic moment in the company’s long-term recovery.

Union Properties has undergone a significant turnaround after facing severe financial distress, including allegations of fraud, mismanagement, and massive debt in 2021–2022.

Union Properties, the developer behind MotorCity, Green Community, Uptown Mirdif, and other mixed-use developments, was forced to scale back operations, restructure its assets, and focus on stabilising its finances over the past decade.

This was following a 2021 investigation into financial irregularities. The company's previous board was dismissed, and new leadership was installed to oversee a multi-year recovery plan.

Fast forward to today, the firm’s 2025 audited results show a notable jump in revenues to Dh736.9 million, up 39.4 per cent from Dh528.7 million in 2024. Operating profit climbed to Dh240.7 million from Dh161.8 million, while cash reserves reached a high of Dh494.2 million — described by management as the strongest liquidity position in recent years.

The Board of Directors has proposed a cash dividend of Dh3 fils per share — the first since 2015 — signalling a shift from years of financial caution to shareholder returns.

Eng. Amer Khansaheb, CEO and Board Member, said the results represented “a decisive turning point for Union Properties” and pointed to the company’s “renewed commitment to delivering long-term shareholder value.”

“Our strongest financial performance in years, supported by record cash balances, enhanced profitability, full repayment of legacy debt, and the proposed reinstatement of dividend payments, reflects the strength of our transformation,” Khansaheb said.

“With a solid financial foundation and clear strategic direction, we enter 2026 with confidence and strong momentum for continued growth.”

Union Properties also advanced its development pipeline in 2025 with the launch of Mirdad, a major residential community in Motor City. The Dh2 billion project includes four towers with 1,087 apartments and a range of lifestyle amenities.

The proposed cash dividend carries symbolic weight given the long hiatus. With improved liquidity, reduced legacy obligations and enhanced profitability, Union Properties says it is now better equipped to balance growth investment with shareholder returns.

The company’s Board will present the dividend proposal at the upcoming shareholders’ meeting, with final approval subject to regulatory and governance processes.

Union Properties said it enters the new year with a clearer financial footing and a focus on execution. With development activity under way and asset quality stabilised, management says the firm is positioned for sustained expansion and a return to value creation after years in recovery.