Palm Island developer Nakheel to merge with Meydan under Dubai Holding

Nakheel and Meydan merger: Dubai's real estate landscape is set to witness a major transformation as Nakheel and Meydan, two leading developers, prepare to merge under the umbrella of Dubai Holding, according to a report by UAE's WAM state news agency on Saturday.

The directive for this merger comes from Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, who plans to consolidate these entities under his investment vehicle to improve financial efficiency and use their combined expertise across diverse sectors.

Nakheel, known for its iconic palm-shaped islands, was brought under government control in 2011 as part of a comprehensive $16 billion bailout package following the real estate downturn of 2009-2010. Recently, it has secured fresh financing and expedited plans for new waterfront developments, capitalising on increased demand for coastal properties amid the COVID-19 pandemic.

On the other hand, Meydan has carved a niche for itself as a prominent developer of hospitality and entertainment complexes in Dubai. Notable among its projects is the Dubai Canal, a 3-kilometre waterway connecting Dubai's Business Bay with the coastline. Additionally, Meydan Racecourse, the venue for the prestigious Dubai World Cup horse race, is surrounded by its real estate ventures.

This merger is set to create a strong entity with assets valued in the hundreds of billions.

(With Reuters inputs)