$592 million dividend payout - Here's how this Dubai firm is attracting investors in UAE's first IPO after Iran war

DIP Holding plans $592 million in dividends over three years to attract investors to the UAE’s first IPO of 2026. Dubai Investments will sell a 20% stake, with subscriptions opening on October 27, as the Iran war weighs on Gulf markets.

Dubai Investments’ subsidiary DIP Holding PLC is seeking to attract investors to the United Arab Emirates’ first initial public offering (IPO) this year by offering $592 million in dividend payouts over the next three years. The promise of massive dividends comes after US-Israeli strikes on Iran in February triggered a war that has rattled neighbouring countries and fuelled uncertainty across the Middle East.

Dubai welcomes investors with $592 million in dividends: Details

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

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Investors can subscribe to the IPO from 27 October to 3 November, with the shares expected to begin trading on Dubai’s stock exchange on 11 November. Bloomberg reported last week that the company planned to begin meetings with investors.

For 2026, the company is planning annualised 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 offer, consisting of 1.74 billion shares, would be split across four tranches, Reuters reported. The statement added that Dubai Investments would sell existing shares in DIP Holding through the IPO. DIP Holding said it would receive none 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.

Gulf IPO market slows down

Citing LSEG data, Reuters reported that firms in the Middle East and Africa raised $2.3 billion through share sales in the first nine months of the year, marking a 79% decline from the corresponding period last year and the lowest level since 2017.

According to Bloomberg, listing volumes in the Gulf, once a hub for IPOs, have declined sharply this year as the regional war has deepened a broader market slowdown. Stock markets across the region have declined since the conflict began, except in Oman. Dubai’s benchmark index has fallen around 9%.

Gulf stock markets traded cautiously on Monday as a tanker explosion in the Strait of Hormuz and doubts over when the waterway would reopen heightened investor concerns about regional tensions.

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

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Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.