REAL ESTATE REMAINS A KEY DRIVER OF DUBAI INVESTMENTS’ PROFITS

Dubai Investments recently posted its first-quarter results for the year, reporting a profit before tax of Dh185 million, up from Dh122 million in the corresponding period in 2024. The 52 per cent jump in profits for the diversified investment company came on the back of higher rental income from its property portfolio.

That’s not a surprise. Since the launch of its flagship development, Dubai Investments Park in 1997, right after its establishment in 1995, real estate has been the lynchpin of Dubai Investments’ success.

“The real estate sector continues to be a significant driver of the group’s profitability, and we expect this momentum to continue given the strong real estate demand in the UAE,” says Khalid Bin Kalban, Vice Chairman and CEO of Dubai Investments, while attributing the first-quarter results to the resilience of its diversified portfolio.

This solid performance follows an impressive 2024, where real estate contributed the bulk of the profit before tax of Dh1.3 billion. The sector accounted for a whopping Dh1.2 billion thanks to soaring rental income from high occupancy rates at Dubai Investments Park; property sales at upcoming projects; and acquisition of new assets by Dubai Investments’ subsidiary Al Mal Capital REIT.

It’s no wonder then that real estate makes up the major chunk of Dubai Investments’ assets – it was worth Dh15.7 billion while other sectors such as manufacturing, contracting and services along with investments added up to Dh6.4 billion at the end of 2024.

The beginning

Dubai Investments’ foray into real estate was as serendipitous as it was well planned. Envisioned as a location where the company could operate out of, Dubai Investments Park was designed as a first-of-a-kind, mixed-use development that could not only accommodate its manufacturing and industrial interests but also be a home to people and businesses, incorporating the best of elements from around the world. 

Today, it is a self-contained city with residential buildings, offices, schools, hotels, hospitals and public parks. With more than 5,000 tenants spread across 2,300 hectares – 1,700 of which are leasable – it offers world-class infrastructure and houses warehouses, factories, and industrial facilities as well.

Dubai Investments eyes replicating its successful business model

Furthermore, Dubai Investments Park was one of the most preferred locations in the affordable properties segment, according to the UAE’s largest classified platform, dubizzle’s first-quarter report, boasting up to 8.79 per cent return on investment for apartments and 12.16 per cent for villas.

The expansion

The success of Dubai Investments Park led the company to create subsidiaries to capitalise on the potential of the property segment. Properties Investment was established in 2002 to manage the Green Community in Dubai Investments Park. To build high-quality developments across the emirate and beyond, Dubai Investments Real Estate was set up in 2006, which developed several projects including residential buildings, staff accommodations, warehouses and residential communities such as Ritaj and Mirdif Hills. Dubai Investments also entered into a joint venture with Fujairah Investment Establishment to set up Al Taif Investment, which built the Al Taif Business Centre, a residential, retail, hospitality and offices development in Fujairah.

Danah Bay – luxury living on Al Marjan, Ras Al Khaimah

Leveraging its expertise in the sector, Dubai Investments launched its most ambitious project to date, Danah Bay on Al Marjan Island, Ras Al Khaimah in 2022. The Dh1-billion beachfront community in one of the region’s most desirable and rapidly growing destinations marks Dubai Investments’ entry into the luxury segment. With 189 landside and breakwater villas and townhouses, the 143-unit Al Danah Residential Tower that includes apartments and penthouses, and a four-star, 300-room Grand Millennium Resort, Danah Bay is unlike any project it has developed up until now in terms of scale or scope.

Diversification is the cornerstone of Dubai Investments’ success

Not surprisingly, construction has proceeded smoothly with phase 1 nearing completion and 151 villas set for handover this quarter. Phase 3 is expected to be finished in the third quarter of the year, which includes the development of exclusive breakwater villas on the man-made island. Construction on both Al Danah Residential Tower and Grand Millennium Resort are on track to be completed in the third quarter of 2026 and third quarter of 2027 respectively.

Building a diversified property portfolio

Big ventures aside, Dubai Investments has also been adept at identifying and catering to customer demand. The launch of the Dh300-million Violet Tower in Jumeirah Village Circle last year, scheduled for completion in the fourth quarter of 2026, was in response to the need for upscale residential buildings that offer luxury as well as practicality.

At the beginning of the year, the company announced Asayel Avenue, a premium residential cluster in Mirdif Hills that offers sophisticated, community-based lifestyle. Construction has begun on the Dh400-million project, with plans for completion in the second quarter of 2027.

With various projects catering to different segments in the pipeline, Dubai Investments is building on the momentum it’s gained over the years. However, it isn’t stopping with just developing new properties. Through its real estate investment trust, Al Mal Capital REIT, Dubai Investments intends to continue investing in income-generating real estate assets to build a diversified portfolio. It’s looking at assets across healthcare, education and industrial sectors in the UAE and GCC with long-term fundamentals and strong performance. The aim is to grow and strengthen Al Mal Capital REIT’s role as a steady source of dividends for stakeholders.

As a one-of-a-kind investment company that has the mandate to invest in any business, Dubai Investments is uniquely positioned to take advantage of the possibilities a booming real estate sector offers across the country and beyond. 

“Dubai Investments is committed to growth within the real estate sector while also focusing on other business verticals to meet industry demands and achieve sustainable growth," reiterates Kalban.

2025-05-21T02:55:44Z