Dubai Holdings’ $584 million REIT surges 10% in IPO debut

Dubai Holding’s $584 million residential real estate investment trust jumped 10% on its trading debut today, reflecting the strength of the emirate’s property market in the city’s first IPO of the year.

The listing on the Dubai Financial Market, which was oversubscribed last week within minutes of its launch, values the trust at approximately $3.9 billion, Bloomberg reports.

Backed by the investment arm of Dubai’s ruling family, the Dubai Residential REIT offering was managed by Citigroup Global Markets Limited, Emirates NBD Capital and Morgan Stanley.

Dubai’s residential market continues to rally, buoyed by the inflow of wealthy expatriates drawn by relaxed visa policies and low taxation.

Dubai’s stock market surges to highest in close to a decade

Dubai’s benchmark stock index soared today to its highest in nearly 10 years amid expectations that the U.S. Federal Reserve will cut interest rates this week.

The Dubai Financial Market’s General Index jumped 3.7% in morning trading to reach 5,010, led by Emirates NBD, Dubai’s largest bank, which rose 8%. The Fed’s decisions affect monetary policy in the Gulf, where the UAE dirham and other currencies are pegged to the U.S. dollar.

The stock surge comes as the UAE has embarked on a borrowing binge that promises to extend well into 2025, Bloomberg reports.

Emirati companies and sovereign entities in the UAE issued $38.4 billion of dollar debt this year, a 54% increase from 2023, according to the news agency.

In Abu Dhabi, ADNOC’s new XRG investment firm announced today that it has completed the formation of its joint venture with BP on an international natural gas platform called Arcius Energy. The JV, which will initially operate in Egypt, is 51% owned by BP and 49% by XRG.

Talabat drops in Dubai after Gulf’s largest IPO of the year

Talabat Holding, which staged the Gulf’s largest IPO of the year, made its trading debut on the Dubai Financial Market stock exchange with a 6.9% drop in its shares.|

The MENA delivery service’s decline on Tuesday was followed with a 12% plunge by its parent company Delivery Hero in Frankfurt.

Talabat raised $2 billion last week in the initial sale of a 20% stake in the popular motorcycle-driven food delivery company.

The Gulf has been one of the busiest regions for IPOs in 2024, with recent share sales by Saudi Arabia’s United International Holding Co., UAE-based Lulu Retail Holdings and Oman’s OQ Exploration & Production.