Aldar and Arada are joining forces on property projects worth around Dhs 15 billion, bringing together two major UAE developers for new residential and mixed-use communities in Abu Dhabi.
The partnership will focus on Yas Island and Seih Sdeirah, near the Abu Dhabi-Dubai border. It also marks Arada’s first development entry into Abu Dhabi.
What is being developed?
The first phase of the partnership includes two major projects.
At Seih Sdeirah, Aldar and Arada will jointly develop a mixed-use community covering up to 1.5 million square metres. The project is planned to include villas and townhouses, along with retail and recreational facilities.
Arada will lead development and construction management, while both companies will work together on branding and sales.
On Yas Island, Arada has acquired three residential development plots from Aldar. Together, the sites cover more than 27,500 square metres and have a combined gross floor area of almost 130,000 square metres.
Two of the plots are located along the canals and will be developed into premium residential communities.
What does the deal mean for Arada?
The agreement gives Arada its first development projects in Abu Dhabi and expands the company’s presence beyond its existing markets.
For Aldar, the partnership brings another developer into projects across two strategically important areas, while allowing the company to work with Arada on new communities and future opportunities.
Both companies said the initial projects could lead to further collaboration across different property sectors, locations and asset classes in the UAE.
Why Yas Island and Seih Sdeirah?
Yas Island has become one of Abu Dhabi’s major residential, entertainment and lifestyle destinations, making it an important location for new housing projects.
Seih Sdeirah, meanwhile, sits close to the Abu Dhabi-Dubai border and offers a much larger development area. The planned community is expected to combine residential properties with retail and leisure facilities.
The two locations give the partnership different opportunities: premium residential development on Yas Island and a large-scale mixed-use community at Seih Sdeirah.
What happens next?
The Yas Island and Seih Sdeirah agreements represent the first phase of the partnership.
Aldar and Arada said they plan to explore additional opportunities across the UAE, potentially covering different sectors and types of property.
For now, the Dhs 15 billion agreement establishes a new collaboration between two UAE developers and expands Arada’s development footprint into Abu Dhabi.
tanvir@dubainewsweek.com
