Emaar weighs buying remaining stake in Emaar Development

What management is weighing

According to people familiar, Emaar Properties - under the leadership of billionaire Mohamed Alabbar and renowned for building the world's tallest tower - is assessing a purchase of the remainder of its publicly traded construction subsidiary. With just over 79% already in hand, a formal outline of any deal could come in the next few days.

Discussions are ongoing with no agreement yet on structure or price, and Emaar could ultimately choose not to proceed, the people said. Representatives for Emaar declined to comment. A board meeting is due this week to assess previously flagged ideas to boost shareholder value, and the company has requested legal and financial advice.

Price, market reaction and timing

At current prices, Emaar Development is worth more than $15 billion, implying Emaar might need as much as $3.2 billion to acquire the remaining shares. The stock rose as much as 11.5%, its biggest single-day gain since early April, but it is still lower by almost one-third since the war began and has trailed Dubai's broader benchmark.

Strategic angles under discussion

CI Capital analysts said owning all of the group's main cash generator could make capital deployment easier, freeing Emaar to direct funds toward recurring-income assets, international expansion and dividends. They also pointed to funding costs and timing as likely swing factors.

Separately, JPMorgan analysts led by Taher Safieddine proposed multiple value-unlocking options, such as acquiring the rest of Emaar Development, purchasing the developer's under-construction residential leasing portfolio, and exploring mergers, acquisitions, or spinoffs across the broader Emaar group.

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The backdrop and why it matters for your portfolio

Emaar raised about $1.3 billion when it listed Emaar Development in 2017, one of the UAE's largest offerings since Emaar took its malls business public three years earlier. Emaar Malls was later delisted in an all-share transaction during the Covid-19 pandemic at about two-thirds of its IPO price.

In May, Emaar's ownership profile shifted when a vehicle overseen by Dubai's ruler acquired a $6.5 billion holding from the emirate's primary investment arm.

In plain English: consolidating its biggest cash engine could reshape Emaar's cash flows and capital allocation if a deal proceeds. That is worth watching alongside the board review timeline and any clues on how the buyout would be funded.

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