Emaar Properties is considering buying out minority shareholders in its listed subsidiary Emaar Development in a potential transaction that could lead to the unit being delisted.
Emaar Properties currently owns just over 79% of Emaar Development, which holds a market valuation exceeding $15 billion. Acquiring the remaining shares could cost the parent developer as much as $3.2 billion at current market prices. Discussions remain ongoing, with plans potentially announced within days, although no final decision has been reached regarding pricing or structure, and the company could decide against proceeding.
Full ownership of the residential development unit would give Emaar Properties greater control over cash flows. This could allow the developer to allocate more capital toward international expansion, recurring-income assets, and shareholder dividends. Analysts at a financial firm noted the transaction offers strategic benefits, while pointing out that timing and financing costs remain key factors.
The consideration follows an announcement made by Emaar Properties more than a month ago stating it was reviewing proposals to create shareholder value. The developer obtained legal and financial advice and is scheduled to review proposals at a board meeting this week. Analysts previously highlighted options including buying the remaining shares of the development business, acquiring its residential leasing portfolio under construction, or pursuing broader corporate reorganisations.
Emaar Development originally listed in Dubai in 2017, raising approximately $1.3 billion. A buyout would mirror the 2021 consolidation in which Emaar Properties took Emaar Malls private through an all-share transaction.
