Dubai Holding Increases Residential REIT IPO to 15% of Total Units
Dubai Holding said on Monday that it has raised the size of the Dubai Residential REIT IPO to 15% of its total unit capital, up from the earlier 12.5%, according to a statement.
New IPO Size
The number of units being offered will increase from 1.63 billion to 1.95 billion, with the price staying between $0.29 (AED 1.07) and $0.30 (AED 1.10) per unit.
DHAM REIT Management, a company owned by Dubai Holding and currently the only owner of the REIT, is selling these units.
You can subscribe to buy the units until May 20, 2025. The final price will be announced on May 21. The REIT is expected to start trading on the Dubai Financial Market (DFM) on May 28.
The offering is split into two parts:
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10% (162.5 million units) is for individual (retail) investors
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90% is for large (institutional) investors
The joint global coordinators and bookrunners are Citigroup Global Markets, Emirates NBD Capital, and Morgan Stanley. Emirates NBD Bank is the main receiving bank.
Abu Dhabi Commercial Bank, Arqaam Capital (with Arqaam Securities), and First Abu Dhabi Bank are also helping manage the offering.
Big Number
The REIT expects to pay at least $299.5 million (AED 1.1 billion) in dividends in 2025. By 2026, it plans to pay 80% of its profit (before property value changes) as dividends.
About REITs
In April 2025, the UAE government confirmed that qualifying REITs don’t have to pay the 9% corporate tax. Also, UAE-based individuals won’t pay tax on REIT dividends or capital gains.
This makes REITs more attractive for investors who want regular income over the long term.
By law, REITs in the UAE must pay out at least 80% of their profits (mostly from rent) to investors. Since this income is not taxed, it offers a steady and tax-efficient return—something that’s rare in today’s world.
REITs are listed on the stock market, so investors can buy and sell units like shares. This makes them easier to trade than regular real estate investments.
Published: 20th May 2025
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