$592M Dividend Payout - Here's How This Dubai Firm Attracts Investors In UAE's First IPO After Iran War

Dubai Investments subsidiary DIP Holding PLC is seeking to attract investors to the UAE’s first initial public offering (IPO) this year by offering $592 million in dividends over the next three years. The promise of massive dividends comes after US-Israeli attacks on Iran in February sparked a war that rocked neighboring countries and fueled uncertainty across the Middle East.

Dubai welcomes investors with $592 million in dividends: The details

Citing the development deal, Bloomberg reported on Monday, adding that Dubai Investments, the sole owner of the company, plans to sell a 20% stake. DIP Holding owns Dubai Investments Park, one of the largest mixed-use projects in the country.

Investors can subscribe to the IPO from October 27 to November 3, with shares expected to start trading on the Dubai Stock Exchange on November 11. Bloomberg reported last week that the company plans to open talks with investors.

For 2026, the company plans annual dividend payouts of 700 million dirhams ($190.58 million), rising to 725 million dirhams ($197.41 million) in 2027 and 750 million dirhams ($204.22 million) in 2028.

In a statement on Monday, the firm said the offering, consisting of 1.74 billion shares, would be divided into four tranches, Reuters reported. The statement added that Dubai Investments will sell the existing shares of DIP Holding through the IPO. DIP Holding said it would not receive any of the proceeds from the sale.

Citigroup, Emirates NBD Capital and HSBC Holdings are serving as joint global coordinators for the IPO, while Abu Dhabi Commercial Bank, Arqaam, Dubai Islamic Bank and EFG Hermes have been appointed as joint bookrunners.

The Gulf IPO market is slowing

Citing data from LSEG, Reuters said firms in the Middle East and Africa raised $2.3 billion in share sales in the first nine months of the year, a 79% drop from the same period last year and the lowest level since 2017.

IPO volumes in the Persian Gulf, once a hotbed for IPOs, have fallen sharply this year as the regional war deepened a broader market slowdown, according to Bloomberg. Stock markets across the region have fallen since the start of the conflict, with the exception of Oman. Dubai’s benchmark index fell around 9%.

Stock markets in the Persian Gulf traded cautiously on Monday as a tanker explosion in the Strait of Hormuz and doubts about when the waterway will reopen raised investor concerns about regional tensions.

In August, Semafor reported that three Saudi companies had put their IPO plans on hold due to expectations of weak investor demand as the Iran war weighed on sentiment.