The latest

Binghatti Holding has suspended preparations for an initial public offering while pursuing high-level partnership talks that Chairman Muhammad Binghatti said could be worth billions of dollars. He said the discussions involve “very reputable master developers” and focus on strategic arrangements, including joint ventures, rather than selling a stake in the Dubai-based company. Asked whether a government-related entity was involved, he replied “perhaps” but declined to identify any party. The proposed tie-up would enable Binghatti to undertake “very strategic projects in good locations” across Dubai. The chairman said negotiations could conclude later in 2026 or in early 2027, potentially adding a new source of support as the company expands its project pipeline.

Details

• Liquidity review: Moody’s Ratings placed Binghatti under review for a downgrade in August, citing deterioration in its liquidity profile and uncertainty linked to the unresolved regional conflict. Binghatti’s five-year sukuk was indicated near 83 cents on the dollar, yielding 12.91%, compared with around par and an 8.36% yield one day before the conflict.
• Repayment position: Muhammad Binghatti said the company was in a strong position to meet all dues and had 10.6 billion dirhams ($2.9 billion) in escrow. Customer defaults were below 1%, while very few buyers had requested payment restructuring, he added.
• Delivery pipeline: The developer has handed over three projects worth 1.8 billion dirhams and plans to complete 10 projects collectively valued at 7.5 billion dirhams in 2026. Those developments are 94% sold, with about 80% collected on average. Sales are also due to begin on a new 2 billion-dirham residential project.
• Market movement: Dubai residential sales transactions rose 2% in July, Betterhomes’ analysis of Land Department data showed. Overall transaction volumes, however, were 32% below the previous July, while total values fell by about half year over year after regional uncertainty weighed on activity earlier in 2026.
• Off-plan exposure: Binghatti relies heavily on off-plan sales, where homes are sold before construction. The segment can be more volatile because buyers make long-term commitments to unfinished properties. A sharp decline in off-plan sales ended Dubai’s 2009 boom, while another downturn ran from 2014 to 2020.

Background

Dubai property prices climbed almost 70% in the five years before the regional war, supported by buyers from India, the UK and Russia. State-backed companies have previously partnered with private developers, including a 2022 deal involving an entity controlled by Dubai’s ruler and Emaar Properties. During the boom, developers raised billions through Islamic bonds and private credit. Binghatti began IPO preparations in 2025 before putting the process on hold.

What’s next

Binghatti expects the partnership talks to conclude by the end of 2026 or early 2027. Nearer milestones are the sales launch for its 2 billion-dirham residential project and completion of the 10 projects scheduled for this year.