Dubai's Emaar Properties has signed a deal worth AED7.5bn ($2bn) to gain full ownership of Dubai Creek Harbour from Dubai Holding.

In a statement issued on the Dubai Financial Market (DFM), Emaar announced that the amount will be paid equally in cash and shares (50 per cent each). The resulting transaction will make Dubai Holding the largest stakeholder in Emaar Properties.

The largest stake (24 per cent) is currently held by the Investment Corporation of Dubai, the emirate's principal investment arm.

Today, we have agreed to sell our Dubai Creek Harbour stake to Emaar Properties. @emaardubai pic.twitter.com/usmVerUf9W

— Dubai Holding (@dubaiholding) August 11, 2022

Deal specifics

The cash payment includes a deferred payment of AED1.25bn payable over a period of three years, arranged from available cash and banking facilities. It is not clear how many shares Dubai Holding will secure.

The closing date of the transaction is 27 September. 

In terms of financial impact, Emaar forecasts an AED2.5bn decrease in net cash balance at the time of first payment. In the long run, the deal is expected to reinforce the developer's position as "[the Middle East and North Africa region's] largest integrated and most diversified real estate company, and will boost the financial and operational resilience of the combined entity via increased scale".

Emaar has said it recorded AED3.6bn in sales in Dubai Creek Harbour in the first half of 2022, and AED4.2bn in all of 2021.

Emaar Properties and Dubai Holding jointly agreed to develop Dubai Creek Harbour in 2013.

Dubai Holding is an investment firm owned by Vice-President and Prime Minister of the UAE, and Ruler of Dubai Sheikh Mohammed bin Rashid al-Maktoum. Its subsidiaries include Dubai Properties, Jumeirah Hotels & Resorts, Tecom Group and Meraas.