Saudi Arabia's Dar Al Arkan to proceed with Dubai unit IPO on London exchange in Q1 2023

Dar Al Arkan's international projects include W Residences in Downtown Dubai. Photo: Dar Al Arkan

Saudi Arabia's biggest property developer Dar Al Arkan plans to list its Dubai unit in the UK in the first quarter of this year.

The initial public offering plans follow a corporate reorganisation of the subsidiary, as it seeks further international expansion.

The proposed listing of Dar Al Arkan Real Estate Development, which was renamed Dar Global Group, is subject to approvals by the UK Financial Conduct Authority (FCA) and the London Stock Exchange (LSE) and the disclosure of an FCA-approved prospectus, Dar Al Arkan said in a filing to the Tadawul stock exchange.

Prior to the listing, Dar Al Arkan Real Estate Development will divest a minority stake of about 12 per cent of its equity interest in Dar Global through a primary issuance of new ordinary shares by the new British company to qualified investors in a private placement, it said.

Dar Al Arkan will retain the remaining 88 per cent controlling interest.

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

"Subject to the completion of the private placement and obtaining the required UK regulatory approvals, the listing is expected to occur in Q1 2023," the parent company said.

The move comes after Dar Al Arkan said in a separate filing on November 6 that it is exploring "several strategic and capital markets options" for its Dubai unit that may include a listing of the business on an international stock exchange.

Later that month, the Riyadh-based company said it teamed up with The Trump Organisation for the development of a resort that will include residential villas, a hotel and a golf course in Muscat.

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

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

The company has more than $8.53 billion worth of assets and is currently building three residential projects in Dubai — Dar Al Arkan Pagani Tower near the Dubai Canal, Urban Oasis by Missoni and W Residences in Downtown Dubai. It is also planning to start a new residential project in Abu Dhabi next year, as the UAE's property market bounces back from the Covid-19-induced slowdown.

In December 2021, the company outlined plans to expand globally with new projects in Europe, China and GCC countries to boost growth.

Saudi Arabia, the Arab world’s largest economy, is focused on diversifying its economy away from oil as part of its Vision 2030 programme, and part of this strategy includes the development of megaprojects across the kingdom.