Aldar and Arada have agreed on AED 15 billion ($4.08 billion) of development opportunities in Abu Dhabi. The agreement covers a joint venture at Seih Sdeirah and the sale of three residential plots on Yas Island.
Aldar and Arada have entered into agreements covering about AED 15 billion ($4.08 billion) of property development opportunities in Abu Dhabi. The deal gives Arada a route into the emirate's development market and brings the two companies together on projects at Seih Sdeirah and Yas Island.
The largest part of the agreement is a joint venture at Seih Sdeirah, where the companies will develop a mixed-use community on up to 1.5 million square metres of land. Arada will handle development and construction management, while both companies will work on branding and sales.
The second transaction involves three residential plots on Yas Island. Arada will acquire the sites from Aldar and develop premium residential projects on them. The combined plots cover more than 27,500 square metres, with a total gross floor area of almost 130,000 square metres.
Seih Sdeirah Development, a Mixed Use Villas and Townhouses Community
The Seih Sdeirah project will be developed close to the Abu Dhabi-Dubai border. The planned community will include villas and townhouses, supported by retail and recreational facilities.
The project will be developed through a joint venture between Aldar and Arada. Arada will oversee development and construction management, while the two companies will jointly handle branding and sales.
Talal Al Dhiyebi, Group CEO of Aldar, said the Seih Sdeirah and Yas Island agreements provide the starting point for further cooperation between the two companies. He also said the companies could explore additional opportunities across different sectors and locations in the UAE.
The location of Seih Sdeirah gives the project a direct connection to the Abu Dhabi-Dubai corridor. However, details on the final masterplan and residential offering remain subject to further announcements.
Arada Acquires Three Yas Island Plots
Under a separate agreement, Arada will acquire three residential plots from Aldar on Yas Island. Two of the sites have canal frontage, while the combined gross floor area across all three plots is close to 130,000 square metres.
Arada plans to develop premium residential communities on the sites. The projects will give the developer a presence on Yas Island, which already has a large residential, leisure and entertainment offering.
For Arada, the Yas Island transaction differs from the Seih Sdeirah agreement. At Seih Sdeirah, the company will work with Aldar through a joint venture. At Yas Island, Arada will develop the land it is acquiring from Aldar.
Arada Enters Abu Dhabi Property Market
The agreements bring Arada into the Abu Dhabi development market for the first time. The company has developed projects in Sharjah and other parts of the UAE, while Abu Dhabi represents a new market for its residential development business.
The two transactions provide different types of development opportunities. Seih Sdeirah offers a large site suitable for a master planned community, while the Yas Island plots are smaller and focused on individual residential developments.
Ahmed Alkhoshaibi, Group CEO of Arada, said Abu Dhabi would be an important part of the company's future development plans. He also pointed to Aldar's existing operations and land position in the emirate.
The agreements were signed by Jonathan Emery, CEO of Aldar Development, and Ahmed Alkhoshaibi, Group CEO of Arada. HRH Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, and Talal Al Dhiyebi also attended the signing.
Aldar and Arada Set Out Project Responsibilities
The companies have defined separate responsibilities for the Seih Sdeirah project. Arada will manage development and construction, while Aldar and Arada will jointly oversee branding and sales. Aldar will remain involved through the joint venture structure. This allows the company to retain a role in the development of the Seih Sdeirah land while Arada takes responsibility for delivering the project.
The Yas Island agreement follows a different model. Aldar is selling three development plots to Arada, which will take responsibility for the projects that are eventually built on those sites. Further announcements will determine the size, pricing and delivery schedules of the planned developments. Until then, the two agreements provide the main details of Arada's entry into Abu Dhabi and its new working relationship with Aldar.
