AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, has signed a land sale deal valued at Dh2.47 billion ($672.5 million) with Mira Developments for what it claims will be one of the largest mixed-use projects in the UAE capital.
Located in the Al Mamoura district and along the Dubai–Abu Dhabi highway, the land is part of AD Ports Group's 16 square-kilometre Town Centre Area, the company said on Monday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The new development will include residential projects and feature "one of the region’s largest shopping malls", along with a business complex, hotels, golf courses, and educational institutions including universities and schools.
Construction is scheduled to start within 12 months and completion expected within 10 years, AD Ports said.
The agreement "reflects the group’s commitment to advancing the development of its land portfolio and attracting new investment", said Capt Mohamed Al Shamsi, managing director and group chief executive, AD Ports Group.
"The significant land sale establishes a new source of income for the group, with the proceeds strengthening the company’s financial position through debt reduction and reinvestment into growth projects."
Last month, AD Ports reported that its net profit for the first half of this year grew by more than 3 per cent annually to Dh668 million, despite increasing international trade tariffs and geopolitical uncertainty.
That was driven by growth in revenue, which rose nearly 17 per cent to Dh9.4 billion on the back of expansion in its ports, economic cities and free zones, maritime and shipping clusters.
The latest agreement will unlock value from its land portfolio, accelerate the development of its master plan and enable the "redeployment of capital into high-impact infrastructure, logistics, and trade facilitation projects", the company said.
"The Al Mamoura site is an exceptional location, and we are committed to developing a landmark mixed-use community that will set new standards for quality and lifestyle in Abu Dhabi," said Timur Mamaikhanov, co-founder and chief executive of Mira Developments.
"We have full confidence in Abu Dhabi’s thriving real estate market."
Abu Dhabi's property market has been booming, with deals in the first half of this year surging by 42 per cent on an annual basis as demand remained strong amid a population increase and robust economic growth.
The total value of deals over the six months to the end of June reached Dh54 billion, driven by residential unit sales that rose by 38 per cent to Dh25 billion, according to the latest report from Abu Dhabi Real Estate Centre(Adrec). The volume of property transactions jumped 25 per cent to 15,578.
New master developments including Al Hudayriat, Balghaiylam in Yas Island, Mamsha Gardens and Saadiyat Lagoons are driving sales of homes, the Adrec report said.
The premium segment recorded strong growth, representing 57 per cent of apartment sales values in the January to June period and more than double its share in 2023, it added.
Sale prices have also risen amid higher demand. Apartment prices increased by 14 per cent year-on-year in the second quarter of this year, while villa/town house prices rose by 11 per cent.
Demand has been outpacing supply in Abu Dhabi since 2022, with the residential inventory standing at 400,000 units at the end of the first half of this year.
Residential supply within Abu Dhabi is expected to increase by 4.6 per cent annually by 2028, adding about 64,000 new units, Adrec added.
