Meed | Dubai reshuffles real estate when market is buoyant

Dubai reshuffles real estate when market is buoyant

18 March 2024

Commentary
Colin Foreman
Editor

In his State of the Union address on 11 January 1962, US President John Kennedy remarked on his plans to introduce changes to an economy that was performing well: “Moreover—pleasant as it may be to bask in the warmth of recovery—let us not forget that we have suffered three recessions in the last seven years. The time to repair the roof is when the sun is shining—by filling three basic gaps in our anti-recession protection.”

His remarks may provide insight into Dubai’s recent decision to incorporate local real estate bodies Nakheel and Meydan into Dubai Holding Group. The board of directors of Nakheel and Meydan will be abolished. Both companies will be fully merged to operate under the single entity of Dubai Holding Group.

UAE Vice President and Prime Minister and Dubai Ruler Sheikh Mohammed Bin Rashid Al Maktoum explained the decision with a comment on efficiency: “The goal is to create a more financially efficient entity, owning assets worth hundreds of billions, and comprising global expertise across various sectors with which we can compete regionally and globally, achieving our national objectives, and realising the Dubai Economic Agenda D33.”

Dubai has made similar moves before. In June 2020, Meraas joined forces with Dubai Holding. Unlike 2024, when Dubai’s property market is performing well with a steady stream of project launches and strong property sales, in June 2020, the sector was still trying to emerge from the lockdowns imposed by the Covid-19 pandemic and five years of property price declines.

The very different outlook for the market today compared to four years ago suggests that Dubai has learnt that, as Kennedy said, the best time to repair the roof is when the sun is shining.

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Colin Foreman