Emaar weighs $3.2 billion buyout of Emaar Development minority stake

Summary

• Emaar Properties is studying buying the roughly 21% of Emaar Development it does not own.
• The subsidiary, worth over $15 billion, saw its shares jump 10.67% Tuesday.
• Full ownership would hand Emaar unrestricted access to its main cash-generating arm.

The latest

A buyout of the minority shareholders in Emaar Development could cost Emaar Properties as much as $3.2 billion, Bloomberg reported, citing people it described as familiar with the matter. The Dubai developer already holds slightly more than 79% of the listed unit, and the sources said plans could be disclosed within days. No final decision has been taken on structure or price.

Details

• The stake: Emaar Properties owns just over 79% of Emaar Development, whose market value exceeds $15 billion. The sources told Bloomberg deliberations are continuing, no final decisions have been reached on the structure or the price of the transaction, and the company may ultimately decide not to proceed.
• Market reaction: Emaar Development shares closed 10.67% higher at AED 13.9 ($3.78) on the Dubai Financial Market, after touching AED 14 ($3.81) intraday for a gain near 11.5%. Market capitalization at the close stood at AED 55.6 billion ($15.14 billion), according to exchange data.
• The backdrop: The potential deal follows a review of options to boost shareholder returns. Emaar Properties confirmed in September that its board examined proposals to extract additional value from the group's various businesses, and requested further legal and financial analysis on some of them before any final decision.
• The dividend: At the same September meeting, the board approved a one-off special dividend of AED 4.4 billion ($1.2 billion) on top of the usual annual distributions. The payout remains conditional on approval by the general assembly and the required regulatory authorities.
• Analyst view: CI Capital analysts said in a note cited by Bloomberg that owning the entire cash-generating arm would give Emaar Properties greater flexibility to channel funds toward recurring-income assets, international expansion and dividends. They added the company would weigh those benefits against the cost and timing of financing the deal.
• The numbers: Emaar Development's post-tax net profit rose 43% to AED 6.7 billion ($1.8 billion) in the first half of 2026, while revenue climbed 34% to AED 13.3 billion ($3.6 billion), according to results published in August. Property sales reached AED 22.4 billion ($6.1 billion) over the period.
• The pipeline: Contracted sales not yet recognized as revenue stood at AED 127.7 billion ($34.8 billion) at the end of June, an 8% increase year on year. The unit develops residential and commercial property for sale in the UAE, including Downtown Dubai, Dubai Hills Estate, Dubai Creek Harbour and Arabian Ranches.
• The precedent: Emaar Properties sold 20% of Emaar Development in a 2017 initial public offering that raised AED 4.82 billion ($1.31 billion). The group has reabsorbed a listed unit before, merging Emaar Malls in November 2021 through a share swap of 0.51 new Emaar Properties shares for each minority share.
• No comment: Representatives of Emaar Properties declined to comment to Bloomberg on the reported deliberations. The company has not disclosed a price range, a financing structure, or a timeline for any announcement.

Between the lines

The September board review, the AED 4.4 billion special dividend and the reported buyout talks point in one direction: Emaar Properties is reorganizing around shareholder returns. The 2021 Emaar Malls merger shows the group has a tested mechanism for taking a listed subsidiary private through a share swap rather than cash, which the CI Capital note suggests matters given financing costs.

What's next

Bloomberg reported the board is expected to meet this week to assess the proposals, with the sources saying plans could surface within days. Any special dividend still requires general assembly and regulatory approval.

Source: Bloomberg, Forbes Middle East, Dubai Financial Market