News

Dubai Holding Plans to List Masaken Dubai REIT on the Dubai Financial Market

May 5, 2025

Dubai Holding announced on Monday, through its fully owned subsidiary DHAAM (D H A A M) for Real Estate Investment Fund Management, its intention to launch an initial public offering (IPO) of Masaken Dubai REIT, a closed-ended, income-generating real estate investment trust that complies with Islamic Sharia principles. The fund is one of the largest owners and operators of residential properties in Dubai, and plans to list its units for trading on the Dubai Financial Market.

Main Takeaways:

IPO Launch: Dubai Holding will launch an IPO for Masaken Dubai REIT, offering 1.625 billion units focused on Dubai’s residential properties.
Dividend Policy: Dividends will be paid semi-annually, with the first two expected in 2025 and 2026, based on net profit or AED 1.1 billion, subject to approval.
Assets: The REIT manages 35,700 residential units across key Dubai locations, catering to corporate and individual tenants.
IPO Timeline: The subscription period is from May 13 to May 20, 2025, with trading starting on May 28, 2025.

Dubai Holding plans to offer 1.63 billion shares in Masaken Dubai REIT, which manages 35,700 residential units across various areas — including some of Dubai’s most prominent locations such as City Walk and Bluewaters.

The fund manager is responsible for overseeing the Masaken Dubai REIT portfolio under a management agreement with the fund. The manager applies its extensive expertise to ensure optimal asset performance and deliver stable returns.

The company’s role as fund manager includes — but is not limited to — full oversight of the management and leasing operations of Masaken Dubai REIT’s residential assets, monitoring the fund’s financial performance, analyzing key performance indicators (KPIs), tracking the progress of its operations and portfolio investments (including preparing semi-annual valuation reports), compiling and publishing financial reports, and appointing and supervising specialized service providers for functions such as facilities and property management.

Masaken Dubai REIT benefits from the broader residential asset ecosystem managed by Dubai Holding, a leading global investment company that owns one of the largest land banks in the Emirate of Dubai.

According to a statement issued by Dubai Holding, Masaken Dubai REIT is expected to become the largest listed real estate investment trust (REIT) in the Gulf Cooperation Council (GCC), with total assets valued at AED 21.63 billion (USD 5.89 billion).

This listing will mark Dubai’s first initial public offering (IPO) since Talabat’s share offering in December, and the second IPO in the UAE this year following the Alpha Data listing.

The subscription period for the IPO is expected to run from May 13 to May 20, with trading on the Dubai Financial Market anticipated to begin on May 28 or shortly thereafter.

Offering Summary

DHAAM Investments, a subsidiary of Dubai Holding, is currently the sole owner of Masaken Dubai REIT, which is offering 1,625,000,000 (1.625 billion) units in the IPO.

The subscription period for the offering is expected to run from May 13, 2025, to May 20, 2025 (inclusive of both dates).

Trading of the REIT units on the Dubai Financial Market (“Admission”) is anticipated to begin on May 28, 2025, or around that date.

The fund manager reserves the right to amend the offering size at any time before the end of the subscription period, at their sole discretion and in accordance with applicable UAE laws and with the approval of the Securities and Commodities Authority.

The Sharia Supervisory Committee of Masaken Dubai REIT has issued a fatwa confirming that the fund and the offering are, in its view, compliant with Islamic Sharia principles. Additionally, the Internal Sharia Supervisory Committee of Emirates NBD Bank PJSC has also issued a fatwa affirming the Sharia compliance of the offering.

Dividend Distribution Policy Summary

Subject to the approval of the Board of Directors of Masaken Dubai REIT and other provisions outlined in the UAE Prospectus issued concurrently with this press release, Masaken Dubai REIT intends to adopt a semi-annual dividend distribution policy, with payments scheduled for April and September each year, starting in September 2025.

Masaken Dubai REIT expects that the total amount of the first two dividend payments, which are anticipated in September 2025 and April 2026, will be the greater of AED 1.1 billion or 80% of the net profit for the period, before changes in the fair value of investment properties, based on its financial results for the fiscal year ending December 31, 2025. This distribution is subject to the approval of the Board of Directors at all times.

For financial years ending December 31, 2026, and beyond, Masaken Dubai REIT intends to distribute at least 80% of net profit (before changes in fair value of investment properties) for each accounting period, subject to Board approval.

Masaken Dubai REIT Investment Offering Summary

Masaken Dubai REIT is the first listed real estate investment trust (REIT) in the GCC region to focus exclusively on the residential rental asset sector. Upon listing, it is expected to become the largest publicly listed REIT in the region, with total assets valued at AED 21.63 billion — approximately double the combined total assets of the five largest REITs in the region.

The fund manages 35,700 residential units across Dubai, strategically located in key areas throughout the emirate. This makes it one of the largest residential property owners and operators in Dubai and a leading reference in residential asset management and leasing.

Masaken Dubai REIT holds a diversified portfolio spread across various locations, property types, and pricing tiers — including premium residential communities, integrated housing developments, affordable housing, and corporate staff accommodations — offering a broad range of living options for families and individuals, catering to Dubai’s growing and diverse population across different income levels.

The REIT delivers strong operating margins and stable, resilient cash flows, supported by a balanced tenant mix: 43% corporate tenants and 57% individual tenants (as of the year ending December 31, 2024).

Masaken Dubai REIT’s assets are efficiently managed and operated by experienced teams with a strong track record. These teams focus on maintaining active tenant engagement, enhancing the value of managed communities, boosting cash flow, and minimizing risk.

The fund’s strong performance is underpinned by Dubai’s robust economic fundamentals, which reflect the broader structural shifts and positive developments in the UAE’s rental sector.

Masaken Dubai REIT also benefits from Dubai Holding’s broader real estate ecosystem, which includes development, asset management, facilities management, and residential community operations. This integrated support puts the REIT in a strong position for sustainable growth and enables it to deliver attractive returns to investors.

Commenting on the initial public offering (IPO) of Masaken Dubai REIT, Amit Kaushal, Group CEO of Dubai Holding, stated:

“As one of the core pillars of the Dubai Holding ecosystem, Masaken Dubai – the residential asset management and leasing portfolio under Dubai Holding Asset Management – has played a vital role in developing high-quality communities that meet the evolving needs of Dubai’s diverse population. The integration of the residential portfolios of Nakheel and Meydan under Dubai Holding last year was a major strategic step for Masaken Dubai, reinforcing its position as one of the largest residential asset portfolios in the region. The IPO of Masaken Dubai REIT presents an important opportunity for investors to participate in this growth journey and tap into the wider opportunities and synergies within the broader Dubai Holding ecosystem.”

He added:

“As we prepare to list Masaken Dubai REIT on the Dubai Financial Market, we look forward to working closely with our partners in the fund to enhance our offerings and continue strengthening Dubai’s position as a premier global destination for living and investment.”

Meanwhile, Malek Al Malek, CEO of Dubai Holding Asset Management and Chairman of the Investment Committee at DHAAM (Dubai Holding Asset Management for Real Estate Investment Funds), said:

“Our journey in residential asset management and leasing began more than 20 years ago through several pioneering, purpose-built projects. Over time, our operations have evolved significantly, and today we oversee an exceptional property portfolio that reflects Dubai’s ongoing growth and remarkable transformation. Our legacy and firm commitment to quality have strengthened our position in managing and leasing integrated residential communities, enabling us to capitalize on the abundant opportunities in Dubai’s real estate sector.”

He continued:

“The announcement of the IPO of Masaken Dubai REIT marks a pivotal moment in our journey. It offers investors a unique opportunity to participate in the first and largest listed REIT in the GCC region focused specifically on the residential leasing and management sector. With a diversified portfolio valued at over AED 21 billion, the listing will expand our reach, deliver sustainable returns to investors, and contribute to shaping the future of urban living in Dubai.”

He said:

“The initial public offering of Masaken Dubai REIT — which includes 35,700 residential units serving more than 140,000 residents across 21 communities — marks a significant step toward expanding our investment offerings. It also paves the way for a broader segment of investors to participate in the growth of Dubai’s real estate market.”

In turn, Ahmed Al Suwaidi, General Manager of DHAAM (Dubai Holding Asset Management for Real Estate Investment Funds LLC), said:

“Masaken Dubai REIT offers investors a unique and accessible opportunity to invest in high-quality, income-generating residential assets across Dubai — without the complexities of direct property ownership and management. The fund aims to deliver regular returns to investors, with potential for capital appreciation, portfolio diversification, and inflation hedging, all within a framework fully compliant with Islamic Sharia principles.”

He added:

“Our carefully managed and strategically located residential communities stand out for their strong demand, high tenant retention rates, excellent facilities, and the unique living experiences they offer. The strategic distribution of our communities across key locations in Dubai helps reduce exposure to geographic concentration risk and reliance on any single tenant segment. This allows us to maintain high operational flexibility and stable occupancy rates throughout our various communities. Going forward, we will focus on enhancing all aspects of our portfolio and launching new projects in the medium to long term.”

Offering Details

The offering will consist of 1,625,000,000 units (“offered units”), representing 12.5% of the issued capital of Masaken Dubai REIT units.

The offering is divided into two tranches:

Retail Tranche (Tranche 1): for individual investors and qualified entities holding a National Investor Number (NIN) on the Dubai Financial Market (DFM) in the UAE.
Institutional Tranche (Tranche 2): for qualified institutional investors outside the United States under Regulation S, in accordance with UAE laws and subject to the approval of the Securities and Commodities Authority (SCA).

10% of the offered units — totaling 162,500,000 units — will be allocated to Tranche 1 (Retail). Each successful applicant in this tranche will be guaranteed a minimum allocation of 2,000 units, provided that this minimum does not exceed the total tranche size or the issued capital of the units, in line with the terms in the prospectus.

90% of the offered units — totaling 1,462,500,000 units — will be allocated to Tranche 2 (Professional Investors), as defined in Chairman of the SCA’s Board Resolution No. 13/R.M of 2021 (as amended from time to time).

DHAAM Investments LLC, the sole current owner of Masaken Dubai REIT units, will retain 87.5% ownership of the issued capital post-offering, assuming all offered units are sold and there are no changes to the offering size.

The final offer price will be determined through a book-building process, conducted in accordance with the instructions of the joint global coordinators, fund manager, and selling unitholder.

The units are expected to be listed on the Dubai Financial Market under the symbol “RESI”, with trading anticipated to begin on or around May 28, 2025.

One of the reasons behind this offering is to enable DHAAM Investments LLC to sell a portion of its stake in the units, in addition to providing liquidity through the public trading of these units and strengthening the fund’s position within the international investment community. The selling unitholder will receive the net proceeds from the offering, and Masaken Dubai REIT will not bear any costs related to the execution of this transaction.

Citigroup Global Markets Limited (“Citi”), Emirates NBD Capital PSC (“Emirates NBD Capital”), and Morgan Stanley & Co. International plc (“Morgan Stanley”) have been appointed as joint global coordinators and joint bookrunners (collectively referred to as the “Joint Global Coordinators”).

Abu Dhabi Commercial Bank PJSC (“ADCB”), Arqaam Capital Limited (acting jointly with Arqaam Securities LLC), and First Abu Dhabi Bank PJSC (“FAB”) have been appointed as joint bookrunners (collectively referred to as the “Banks”).

Emirates NBD Bank PJSC has been appointed as the lead receiving bank for the subscription.