Abu Dhabi's Aldar raises foreign ownership limit to 49%

The shareholders of property developer approved the move at the AGM on Wednesday

Aldar Properties has raised its foreign owernship limit. Christopher Pike / The National

The shareholders of Aldar Properties have approved raising its foreign ownership limit by 9 per cent, allowing foreigners to own up to 49 per cent of Abu Dhabi’s biggest-listed developer, the company said on Thursday.

The developer behind iconic projects such as Formula One circuit on Yas Island, received the shareholders' approval at the annual general meeting on Wednesday, the company said in a statement to the Abu Dhabi Securities Exchange, where its stocks are traded.

Aldar shares climbed 0.9 per cent to end the trade at Dh2.24 on Thursday, after climbing 2.8 per cent a day earlier. They are benefitting from continued investor appetite following the announcement of a strategic partnership between Aldar and Emaar Properties, the UAE's biggest real estate company by market capitalisation, "to develop the world’s next era of iconic destinations", with a targeted Dh30 billion national and international projects pipeline.

The agreement, signed on Tuesday by Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, is by far the biggest collaboration between developers from different emirates.

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The alliance will initially focus on two UAE-based projects, Saadiyat Grove in Abu Dhabi and Emaar Beachfront in Dubai, the companies said on Wednesday.

Saadiyat Grove, which is set to open in 2021, is a mixed-use development that will feature about 2,000 residential units, two world-class hotels, 400 serviced apartments and 130,000 square metres of “experiential lifestyle and retail space”, designed with a focus on the lifestyles of the future and millennials.

Emaar Beachfront, a private island situated between Dubai’s Jumeirah Beach Residence and Palm Jumeirah, will consist of approximately 7,000 residential units with access to a 1.5km private beach.

Dubai and Abu Dhabi property markets have slowed in recent years in the wake of a three-year oil slump, that appears to have come to an end with the rebound in energy markets and Brent rising to almost $70 a barrel.