Abu Dhabi approves capital projects framework between Aldar Properties and government
Aldar to manage Dh30bn worth of major projects including Riyadh City, Baniyas North and developments in Al Ain and Al Dhafra
The Abu Dhabi Executive Council approved a framework between the Abu Dhabi government and Aldar Properties to develop capital projects in the emirate.
Under the framework, Aldar will manage Dh30 billion worth of major projects including Riyadh City, Baniyas North and developments in the Al Ain and Al Dhafra regions, according to a statement by the Abu Dhabi Government Media Office (ADGMO) filed to the Abu Dhabi Securities Exchange on Wednesday.
"The projects will provide a significant positive impact on the wider Abu Dhabi economy," the ADGMO said. "Aldar’s ‘in-country value’ (ICV) programme gives priority to local contractors, consultants, and suppliers – including SMEs – for most contract awards."
The move comes after the Abu Dhabi Executive Committee recommended establishing a public-private partnership framework to develop capital projects in the emirate.
Subsequently, Abu Dhabi's holding company ADQ and Aldar Properties signed an agreement in October under which the emirate's biggest listed developer will take over the development and management of government capital projects valued at Dh30bn.
The projects Aldar is set to manage will deliver about 25,000 homes for UAE nationals and related infrastructure over the next five years.
Aldar will also provide management oversight of Dh10bn worth of Musanada’s projects in education, healthcare, infrastructure, social services and facilities management.
Musanada, which is responsible for developing much of the emirate’s public infrastructure, currently has a pipeline of projects including education, healthcare, infrastructure and social services buildings. It also has a facilities management arm to run them.
Aldar’s fee-based development management business is also overseeing Dh5bn worth of infrastructure projects awarded by the Abu Dhabi government in 2019. These projects include Al Falah national housing, Media Zone Abu Dhabi on Yas Island and Saadiyat infrastructure works.
Aldar reported a 30 per cent increase in third quarter revenue on the back of higher residential property sales and a growth in income from its third-party development management business.
Revenue for the three months to September 30 grew to Dh2.1bn. Net profit rose 8 per cent to Dh416m.
Governments in the Gulf region are increasingly turning to the private public partnership model, which can help finance major infrastructure and utilities projects. Many of them are developing legal frameworks to regulate PPP projects, which are expected to improve transparency and attract investment.
Published: January 20, 2021 10:44 AM