Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s ruler, directed the two to merge under his investment vehicle Dubai Holding.

“The goal is to create a more financially efficient entity, owning assets worth hundreds of billions, and comprising global expertise across various sectors,” WAM quoted Sheikh Mohammed as saying.

Nakheel, the group behind Dubai’s palm-shaped islands, was taken over by the government in 2011 as part of a US$16 billion rescue plan in the aftermath of a 2009-2010 real estate crash.

It has recently secured new financing and accelerated plans for new waterfront projects, cashing in on a rise in demand for coastal properties in the wake of the coronavirus pandemic.

Meydan is a major developer of hospitality and entertainment facilities in Dubai, including Dubai Canal, a 3km stretch of waterway between Dubai’s Business Bay and the coast.

It also has real estate projects next to its Meydan Racecourse, home of the Dubai World Cup horse race.