Emaar Drops Merger Plan With Dubai Holding Entities

Emaar Properties, which is expected to inaugurate the world's tallest tower Burj Dubai in four weeks, on Wednesday called off a merger plan with the real estate entities of Dubai Holding that could have created a $52.8 billion property giant. Emaar Properties, which is 32.5 per cent owned by the Dubai Government, said it will not go ahead with its merger with Dubai Holding, which was announced a few months ago. The merger was announced by the Dubai Government in June and led to realignment among the property entities of Dubai Holding, including Sama Dubai, Dubai Properties and part of Dubailand.

Emaar, Dubai Properties and Nakheel have been reshaping the real estate landscape of Dubai for the last few years, in line with the government's vision to strengthen Dubai's position as a leading regional hub. The three entities have, over the last five years collectively developed "New Dubai" — home to thousands of national and expatriate families. However, since the global credit crisis impacted Dubai's real estate market late last year, these developers have been forced to rethink growth strategies, including the option to merge, as collectively they hold a large chunk of landmass.