Staff Report,
Dubai, UAE
The merger of Nakheel and Meydan, two of the UAE’s top developers under Dubai Holding, a global investment group announced by Sheikh Mohammad bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, will accelerate the announcement of new mega projects as both the developers have proven track records to deliver landmark projects such as the Palm Jumeirah and Meydan City.
In a Twitter post, Sheikh Mohammad said on Friday, “In a significant step towards bolstering our economic progress, today we ordered the merger of Nakheel and Meydan under the Dubai Holding umbrella. The move aims to establish a formidable global economic entity with a diverse portfolio spanning technology, media, hospitality, real estate, retail, and other sectors.”
Nakheel, launched in 2002, spearheaded the freehold property boom with the development of the iconic Palm Jumeirah and other key developments. The coastal developments by Nakheel have added over 300 kilometres to Dubai’s initial 70-kilometer shoreline, paving the way for future villas, residences, high-rise apartment complexes, hotels, and other amenities.
The developer crafts master communities, residential and commercial complexes, and recreational facilities that drastically transform Dubai’s skyline and landscape. Developer’s Projects: Palm Jumeirah Island, Dubai World Islands, Deira Islands, Jumeirah Islands, the Jumeirah Village districts, Jumeirah Park, Jumeirah Heights, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City, and the new Jebel Ali Palm. Together, these projects cover an area of over 15,000 hectares and house nearly 300,000 residents.
The company went through a phase of restructuring during the Global Financial Crisis in 2009, following government bailout package that helped it to come back to business from being on the verge of bankruptcy.
Meydan, owned by Dubai Government, is developing Mohammed bin Rashid City – a vast urban development that will re-shape Dubai city. The merger will give Nakheel, currently led by veteran industry leader Namat Atallah, a bigger slice of land bank for development.
It is however, unclear if both the names will be prevalent or they will operate under one brand name. Nakheel once announced to develop the world’s tallest tower, Nakheel Harbour Tower, that was subsequently shelved. Industry observers feel something might come up under the new united entity as the company is in better shape to deliver more ambitious projects.
The merger will be headed by Sheikh Ahmed bin Saeed Al Maktoum following the dissolution of the Board of Directors of both companies. He is also the CEO and Chairman of the Board of Directors of Emirates Group, and Chairman of the Dubai Civil Aviation Authority.
Sheikh Ahmed stated,” The merger of Nakheel and Meydan under the umbrella of Dubai Holding marks a significant step towards bolstering financial efficiency and fostering a more profound global influence. With a diverse portfolio spanning multiple sectors, Dubai Holding is primed to strengthen its competitive edge both regionally and globally, aligning closely with the ambitious goals outlined in Dubai Economic Vision 2033.”
With an established portfolio across real estate, retail, hospitality, food and beverage, leisure and entertainment, and healthcare, both Nakheel and Meydan will bolster the position of Dubai Holding in the global marketplace. The conglomerate will cater to the global demand for specialised services while diversifying the economy. It currently operates Jumeirah Group, Dubai Properties, and TECOM Group among others.
With more than US$356 billion worth of private real estate developments and public building and housing programmes planned or under way, the UAE is the region’s second-biggest construction projects market, after Saudi Arabia. Post-Covid 19, the country witnessed the construction sector to return strong after its poor performance in 2020. According to regional projects tracker MEED Projects, the US$17 billion worth of contract awards in 2023 has already surpassed the US$15 billion mark achieved in 2022. The high-profile merger will take advantage of the industry’s momentum and propel further economic growth.
Ends
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