Alec Holdings is set to list about 20% of its shares in an initial public offering on the Dubai Financial Market, while Binghatti Holding is preparing for a possible IPO, as both seek to harness surging demand in Dubai’s real estate sector. These moves reflect growing confidence among developers and investors in a rapidly expanding market.
Alec, wholly owned by the Investment Corporation of Dubai, will offer 1 billion shares via the IPO, with subscription running from 23 to 30 September and trading expected to begin mid-October. The government entity will retain 80% ownership post-float. The company has committed to at least 50% of net profit as cash dividends going forward.
Binghatti is “preparing for a possible IPO” to capitalise on strong market momentum. Though timing and structure remain under consideration, market watchers expect the company to follow Alec’s lead.
Alec’s financials underscore the scale of its operations: revenues reached AED 5.4 billion in the first half of the year, with a project backlog valued at AED 35.4 billion as of end-June, over three-fourths of which was secured in the past two years.
Among Alec’s strategic shifts is its push into data centre construction, where it has secured a contract worth approximately AED 1.3 billion for the Stargate data centre in Abu Dhabi. The company views data infrastructure as a major growth pillar alongside its core construction, UAE-Saudi expansion, and select mega-projects.
Drivers behind the surge include a buoyant economy, a steady flow of expatriate residents due to more liberal residency and visa frameworks, and fiscal policies that favour business investment. Such conditions have pushed residential, commercial and hospitality real estate demand higher. The weakening of the dirham versus major foreign currencies has also made Dubai property more affordable for overseas buyers, particularly from the UK, boosting international interest.
The IPOs emerge as other trends reshape the industry. Several leading developers—Emaar, Arada, Azizi, Ellington and Samana—are expanding internal contracting capacities to better control delivery schedules and avoid delays associated with external contractors.
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