Prominent UAE developers Aldar and Arada have revealed a significant strategic alliance that includes major development prospects on Yas Island and at Seih Sdeirah in Abu Dhabi, with a total estimated value of around AED15 billion ($4.1 billion).
The initial agreements entail a strategic masterplan joint venture between Aldar and Arada to create a significant mixed-use community at Seih Sdeirah along the Abu Dhabi – Dubai border and Arada’s purchase of three residential development parcels on Yas Island.
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The collaboration represents a significant achievement for Arada, highlighting its initial development presence in Abu Dhabi. It combines Aldar’s extensive scale, strategic land holdings, and established development framework in the emirate with Arada’s complementary development knowledge and history in executing large-scale communities.
The contracts were executed by Jonathan Emery, CEO of Aldar Development, and Ahmed Alkhoshaibi, Group CEO of Arada, with Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, and Talal Al Dhiyebi, Group CEO of Aldar, witnessing the event.
Al Dhiyebi stated that this collaboration unites two prominent UAE developers with matching strengths and a common goal to develop top-tier destinations.
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"The opportunities on Yas Island and at Seih Sdeirah establish a strong foundation for our collaboration with Arada, and we see significant potential to build on the partnership across sectors and geographies in the UAE," he states.
On Yas Island, Arada has purchased three development sites from Aldar for upcoming residential projects in one of the UAE’s top lifestyle destinations. The three sites, which include two facing the canal, have a total plot area exceeding 27,500 sqm and an overall gross floor area of nearly 130,000 sqm.
On the strategic partnership, Alkhoshaibi says, "Aldar's scale, vision and established platform in Abu Dhabi create exactly the right foundation for the kind of communities we intend to build here, and the opportunities ahead of us, across both Abu Dhabi and elsewhere across the UAE, are considerable. This is the beginning of what we intend to be a long and productive collaboration, and we look forward to what we will build together."
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"At Seih Sdeirah, Aldar and Arada will co-develop a large-scale mixed-use community, covering up to 1.5 million sqm of land," he states.
"Envisaged as a villa and townhouse community incorporating retail and recreational amenities, the development will draw on the respective capabilities of both partners, with Arada leading development and construction management and Aldar and Arada jointly branding and selling the community," he adds.
The purchase will allow Arada to create upscale residential neighborhoods on the sites, representing the firm's inaugural development initiatives in the Abu Dhabi market while aiding the ongoing growth of Yas Island's residential options.
The Yas Island and Seih Sdeirah deals signify the initial stage of the strategic alliance, as Aldar and Arada intend to investigate additional collaboration across various sectors, asset classes, and areas within the UAE.