Saudi Arabia’s Dar Al Arkan will proceed with the Dubai Unit’s IPO on the London Stock Exchange in the first quarter of 2023

Saudi Arabia’s largest real estate developer Dar Al Arkan plans to list its Dubai branch in the first quarter of this year.

The plans for the IPO follow a corporate restructuring of the subsidiary, which is aiming for further international expansion.

The proposed listing of Dar Al Arkan Real Estate Development, which has been renamed Dar Global Group, is subject to UK Financial Conduct Authority (FCA) and London Stock Exchange (LSE) approval and the publication of an FCA-approved prospectus, Dar Al Arkan said in a filing with the Tadawul Exchange.

Prior to the listing, Dar Al Arkan Real Estate Development will sell a minority interest of approximately 12 percent of its equity interest in Dar Global through a primary issuance of new common shares by the new UK company to qualified investors in a private placement, it said.

Dar Al Arkan retains the remaining 88 percent control interest.

Upon listing, Dar Global will be the UK holding company for the group’s international property development interests and marketing offices in the UK, Spain, UAE, Oman, Qatar, Bosnia and China, according to the listing filing.

“Subject to the completion of the private placement and the receipt of necessary UK regulatory approvals, the listing is expected to occur in the first quarter of 2023,” the parent company said.

The move comes after Dar Al Arkan said in a separate filing on November 6 that it was evaluating “several strategic and capital markets options” for its Dubai unit, which could include listing the company on an international stock exchange.

Later this month, the Riyadh-based company announced it has partnered with The Trump Organization to develop a resort that will include residential villas, a hotel and a golf course in Muscat.

The Trump Resort will be located in Aida, a 100-meter-high hilltop settlement facing the sea. Dar Al Arkan and Oman Tourism Development Company, better known as Omran, are developing the $4 billion Aida mixed-use real estate project in the Oman capital.

Dar Al Arkan, the largest developer in Saudi Arabia, focuses on the development of luxury residences and business centers in key locations across the Kingdom. The company has delivered 15,000 residential units and more than 500,000 square meters of commercial space and is expanding in its home market, the Middle East and Europe.

The Company has assets valued at over US$8.53 billion and is currently constructing three residential projects in Dubai – Dar Al Arkan Pagani Tower near Dubai Canal, Urban Oasis by Missoni and W Residences in Downtown Dubai. There are also plans to launch a new housing project in Abu Dhabi next year as the UAE property market recovers from the slowdown caused by Covid-19.

In December 2021, the company outlined plans for global expansion with new projects in Europe, China and the GCC countries to fuel growth.

Saudi Arabia, the largest economy in the Arab world, is focusing on diversifying its economy away from oil as part of its Vision 2030 program, and part of that strategy includes developing mega-projects across the kingdom.

Updated January 02, 2023 3:00 am