Nakheel, Meydan set to become part of Dubai Holding

State-owned property developers Nakheel and Meydan will become part of Dubai Holding, according to an announcement by the Dubai ruler Sheikh Mohammed bin Rashid al Maktoum.

Sheikh Mohammed has directed the inclusion of Nakheel and Meydan “under the umbrella” of Dubai Holding, forming a “global economic entity,” he said in a March 16 statement posted on X, the social media site formerly known as Twitter.

The goal is to create a “more financially efficient entity,” owning assets worth “hundreds of billions” and including expertise in various sectors which can compete regionally and globally, according to the post. The boards of directors of both Nakheel and Meydan will be abolished, state news agency WAM said.

Dubai has seen a surge in demand for property over the past couple years, aided by an influx of people from around the world. That’s helped the city reverse a years-long slump — prices are closing in on records, despite mortgage rates hovering at the highest levels in two decades.

Nakheel, best known as the developer of Dubai’s man-made palm-shaped islands, last year launched a project that saw buyers queue up for $5 million homes.

The surge in demand caps a turnaround for Nakheel, which was affected by the global property crash in 2009, but has since consolidated operations and cut costs.

Meydan in 2021 had total debt amounting to about $4 billion, of which $2.6 billion required restructuring, people familiar with the matter said at the time.