Aldar Properties was awarded contracts worth Dh5 billion from multiple Abu Dhabi government entities to deliver three projects in the capital as the emirate continues to spend on infrastructure and economic development schemes.
Aldar, the biggest listed developer in Abu Dhabi will appoint contractors “immediately” to commence works on Saadiyat Island, Yas Island and in Al Falah area, the developer said in a statement to Abu Dhabi Securities Exchange, where it shares trade.
The phased completions of the projects will begin as early as 2021, it added.
"These contracts reflect the government’s commitment to partnering with the private sector to deliver its ambition of making Abu Dhabi the best city to live, work, visit and invest in," said chief executive Talal Al Dhiyebi. "This is a testament to the solid economic growth the emirate is witnessing."
Abu Dhabi's property market and the economy faced headwinds in the wake of the 2014 drop in oil prices. However, the economic momentum has since picked up pace and the multiple initiatives by the government, including continued spending on social, economic and infrastructure development projects, has added to economic stability.
The Abu Dhabi government last year outlined details of Ghadan 21, a Dh50bn three-year programme driving economic development, innovation, ease of doing business and liveability in the UAE capital. One of the key tenets of the programme is to develop infrastructure, including transportation, communication and urban development.
Steps such as the economic stimulus package and the long-term visa system, offering residency for up to 10 years to specialists in technical fields, are expected to boost the non-oil economy of the emirate and its real estate sector.
In April, the government also made changes to related laws allowing foreigners to own freehold property in designated zones. Foreign investors in Abu Dhabi’s real estate market were previously granted leasehold for a maximum period of 99 years.
The projects on Saadiyat Island, Yas Island and at Al Falah, Mr Al Dhiyebi said, are a continuation of the government policies and will play a major role in supporting Abu Dhabi’s sustained growth and diversification.
The Abu Dhabi government appointed Aldar to complete the remaining infrastructure and public works on Saadiyat Island. The deal worth Dh2bn will facilitate further integration of Saadiyat Island into the broader Abu Dhabi metropolitan area with the construction of roads and utilities.
“This will ensure Saadiyat Island is equipped with the best infrastructure attracting further investments to one of the most sought-after destinations in Abu Dhabi,” Aldar said in the bourse filing.
The Abu Dhabi Housing Authority awarded Aldar a contract for the expansion of Al Falah, a master-planned community developed for UAE nationals. The project will add an additional 899 villas to the existing stock of 4,898 with a total development value of Dh2bn.
Abu Dhabi’s media free zone, twofour54, also awarded Aldar a Dh1bn contract to develop its new campus located on Yas Island. This new development will bring a working population of 10,000 to the island. It will play a key role in encouraging further investment into the UAE capital’s thriving media and entertainment industry, Aldar noted.
Apart from working on the government contracts, Aldar is busy in launching its own projects. Last month the developer launched a Dh1.7bn residential project, its third this year, featuring plot sales to tap demand for land in the capital’s property market.
Alreeman II in Al Shamkha will be available for purchase to Emiratis only. The project follows the success of Alreeman, launched in January, which generated Dh1.6bn in sales.
Also last month, Aldar said it is partnering with India's Anarock Group to sell real estate in Abu Dhabi to Indian investors, extending the UAE developer's reach outside its home market for the first time.
"India is a very important market for Aldar and a core part of our strategy for international sales," Mr Al Dhiyebi said at the time.
