Dubai’s ICD adds Meydan to portfolio to gain larger property footprint

Dubai’s ICD adds Meydan to portfolio to gain larger property footprint

Investment Corp. of Dubai is gaining a larger footprint in the emirate's property market by asserting control over state-owned developer Meydan's real estate projects.

"We have embarked on a review of Meydan's business strategy,“ Mohammed Al Shaibani, ICD's chief executive officer, said in an emailed reply to questions. "Our aim is to improve efficiencies in operations.“

Meydan, which built Dubai's horse racetrack, is now overseen by the same government committee that earlier this year took charge of Nakheel, another builder managed by the wealth fund, according to people familiar with the matter. ICD is also the biggest shareholder in Emaar Properties, Dubai's largest developer.

Facing a property glut, Dubai has moved to combine several of its state developers that have churned out an increasingly unsustainable supply of homes, offices and shopping centres. Already a drag on property values, some projects have run into financial trouble after the coronavirus pandemic wrought havoc across Dubai's economy.

Partial Consolidation?

The review of Meydan's business is likely a step in partial consolidation of some of its operations with Nakheel, the people said, asking not to be identified because the deliberations are private.

Al Shaibani, who's also director general of the Dubai's ruler's court, in January replaced Ali Lootah as