Qatar raises its stake in Dubai Parks and Resorts

Qatar Holding has lifted its stake in Dubai Parks and Resorts to 11% after a Dh1.68bn capital increase to fund the construction of a Six Flags amusement park set to open in the fourth quarter of 2019.

The Qatari sovereign wealth fund had not disclosed the size of its stake before the rights issue and is only doing so now because any stake over 5 per cent must be disclosed to the Dubai Financial Market, according to a Dubai Parks spokeswoman.

No one at Qatar Holding was immediately available to comment.

The rights issue was 1.6 times oversubscribed, Dubai Parks said. The new shares will be listed on the DFM following approval from the Securities and Commodities Authority on or around June 5.

Dubai’s Meraas Holding, which had a 60% stake before the rights issue, now has a 52% stake, according to the spokeswoman.

As well as raising Dh1.68bn via the capital market, Dubai Resorts has raised Dh993 million in debt through Abu Dhabi Commercial Bank, Dubai Islamic Bank and Sharjah Islamic Bank.

“Thanks to the support of our shareholders, we’ve successfully raised Dh1.68bn in an oversubscribed rights issue to fund our growth strategy by adding a fourth theme park to our destination," said Raed Kajoor Al Nuaimi, the chief executive of Dubai Parks and Resorts.

“The addition of Six Flags Dubai will enhance our already extensive offering and further establish our position as the Middle East’s largest leisure and entertainment destination."

The Dubai Parks and Resorts project will include a Legoland, a Bollywood movie theme park, a Hollywood amusement park as well as shops, restaurants and a family hotel.

The Legoland theme park, intended to cater for children aged two to 12, is on track to be completed this year.

Plans for the theme parks, to be built close to the Dubai 2020 Expo site and the city’s new Al Maktoum airport were announced by Meraas in 2012 as part of a government push to double annual visitor numbers to 20 million by 2020.

Courtesy: thenational.ae