Aldar Properties, Abu Dhabi’s largest listed developer, awarded 49 contracts worth Dh22 billion ($6 billion) last year, as it expanded its portfolio amid continued growth in the emirate's real estate market.
Aldar awarded the contracts to 36 UAE-based companies for its infrastructure, residential, commercial, and mixed-use developments across the capital, it said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Almost 50 per cent of the total value – Dh10.5 billion – is being recirculated to Abu Dhabi's economy, in line with the National In-Country Value (ICV) programme, Aldar said.
“Once completed, these projects will not only help to satisfy demand for new residential options in the capital, but also deliver new office and retail spaces, and make the emirate more connected through a series of infrastructure improvements,” Adel Abdulla Albreiki, chief executive of Aldar Projects, said.
Aldar places sustainability as a key credential within its procurement process, ensuring that all contractors are positively contributing to our net zero commitments
Adel Albreiki,
chief executive of Aldar Projects
About 53 per cent of the contracts awarded were for Aldar's own projects, while the remainder are for the developments the company is delivering on behalf of the Abu Dhabi government.
When completed, these projects will add to inventories of villas, townhouses, apartments, Grade-A offices, retail spaces, schools, and major highways within some of Abu Dhabi’s key growth locations, including Yas Island, Saadiyat Island and Al Shamkha, Aldar said.
All Aldar contracts are also aligned with the UAE climate goals and adhere to net zero commitments.
“Aldar places sustainability as a key credential within its procurement process, ensuring that all contractors are positively contributing to our net zero commitments, which encompass a number of critical levers, including low carbon design, low carbon supply chain, green construction and circular economy,” Mr Albreiki said.
The ICV programme, part of the UAE's Projects of the 50, aims to boost the growth of UAE-based industries by redirecting half of government spending on procurements and tender contracts into the national economy by 2031.
It has expanded significantly since the launch and offers growth opportunities for companies in priority sectors, such as heavy industries, space technology, hydrogen and medical technology.
The property market in the UAE bounced back strongly from the pandemic-driven slowdown in 2021 and it has maintained a robust growth momentum.
Aldar, the developer behind Abu Dhabi's Formula One circuit and other developments in the emirate, awarded Trojan General Contracting in partnership with Arabian Construction Company (ACC), a contract on Saadiyat Island to develop the first two phases of Saadiyat Lagoons. The third phase was awarded to Innovo Build.
In total, more than 2,000 residential units will be developed by the contractors at Saadiyat Lagoons.
On Yas Island, Fibrex was selected to develop homes at Yas Park Gate and Yas Park Views. The project includes the development of 849 units. ACC was awarded a contract to develop a Grade A office tower, responding to the demand for commercial space on Yas Island.
Nurol has been awarded the villa and infrastructure works at Fay Al Reeman II, which will add 557 residential units in the Al Shamkha area.
Another contract was awarded to Trojan for villa and infrastructure works at Balghaiylam, a new community for the UAE citizens being developed in partnership with Abu Dhabi Housing Authority. It will feature 1,743 homes.
On Tuesday, Aldar said it would invest Dh5 billion to develop a range of income-generating assets in Abu Dhabi, with a focus on commercial, retail and hospitality sectors amid growing demand for property in the UAE.
Last month, the developer also unveiled a residential development on Yas Island, comprising 234 apartments, duplexes and penthouses.
Aldar has also been expanding its global presence. On Thursday, the company announced a Dh407 million investment in logistics and storage assets in Europe through a partnership with global investment firm Carlyle.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
COMPANY%20PROFILE
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Mohammed bin Zayed Majlis
FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place play-off
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
Results
4pm: Al Bastakiya – Listed (TB) $150,000 (Dirt) 1,900m; Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
4.35pm: Dubai City Of Gold – Group 2 (TB) $228,000 (Turf) 2,410m; Winner: Walton Street, William Buick, Charlie Appleby
5.10pm: Mahab Al Shimaal – Group 3 (TB) $228,000 (D) 1,200m; Winner: Canvassed, Pat Dobbs, Doug Watson
5.45pm: Burj Nahaar – Group 3 (TB) $228,000 (D) 1,600m; Winner: Midnight Sands, Pat Dobbs, Doug Watson
6.20pm: Jebel Hatta – Group 1 (TB) $260,000 (T) 1,800m; Winner: Lord Glitters, Daniel Tudhope, David O’Meara
6.55pm: Al Maktoum Challenge Round-1 – Group 1 (TB) $390,000 (D) 2,000m; Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass
7.30pm: Nad Al Sheba – Group 3 (TB) $228,000 (T) 1,200m; Winner: Final Song, Frankie Dettori, Saeed bin Suroor
