Dubai — Mubasher: Brookfield Asset Management Inc. is in preliminary talks for an investment in Dubai-based Meraas Holding, sources familiar with the matter said.

The Canadian firm, which owns assets in the utilities, transport, energy, and communications infrastructure sectors, is considering options that would give it control of some retail properties from the UAE’s state-run property developer, including entering into a joint venture for those developments, sources told Bloomberg News on Wednesday.

Brookfield is mulling over acquiring a stake in Meraas as part of such deal, they said, adding that the discussions are in preliminary stages and may not result in an accord.

If completed, the deal would signal a vote of confidence in the ailing real estate market of the UAE’s second-biggest sheikhdom.

Meraas is operating in developing commercial and residential properties around Dubai, in addition to investing in attractions such as cinemas, hotels, restaurants, and entertainment parks, and a health-care venture.

It is worth noting that the slippage of global oil prices has taken its toll on Dubai's economy. Occupancy in the emirate’s malls has softened as high spenders from neighboring GCC nations slash their spending.