Two of Dubai’s biggest developers, Nakheel and Meydan, are to merge under the umbrella of Dubai Holding, the investment company owned by Mohammed bin Rashid al-Maktoum, the emirate’s ruler.

The move announced by al-Maktoum on state news agency WAM on Saturday, is intended to “sustain and advance growth through a unified and integrated vision that builds on gains, spurs efforts and boosts Dubai’s global competitiveness”.

Al-Maktoum said the new structure would “reinforce and boost our economic growth” by forming “a global economic entity with a diverse portfolio in sectors such as technology, media, hospitality, real estate, retail and more, led by Sheikh Ahmed bin Saeed Al Maktoum”.

Nakheel Properties is the builder of the Palm Jumeirah island and The World Islands, Jumeirah Park, Jumeirah Village, Al Furjan, The Gardens, Discovery Gardens, Jebel Ali Village and Nad Al Sheba Villas. It has an annual revenue of around $5.7bn. It also includes Jumeirah Group, Dubai Properties, and Tecom Group in its portfolio.

The Meydan Group’s portfolio includes the Meydan Racecourse, as well as real estate projects such as Mohammed bin Rashid City.

Simon Baker, managing director of Dubai real estate agency Haus & Haus, told The National newspaper that the deal would allow Dubai “to consolidate resources, increase market share and capitalise on synergies to better exploit the current soaring demand”.

In 2023, Dubai registered a 17% increase in real estate transactions to 1.6 million across market segments, according to the Dubai Land Department.

The Nakheel-Meydan merger may also be aimed at advancing the Dubai Economic Agenda D33 plan. This was launched in January last year and aims to double the size of Dubai’s economy by 2033.