By announcing several joint ventures valued at over $8.17 billion (AED 30 billion), Aldar Properties and Mubadala Investment Company have elevated their strategic partnership to a new level and helped to elevate Abu Dhabi’s standing as a leading international business and leisure destination. To support the emirate’s urban and economic transformation, this partnership will concentrate on retail, sustainable real estate, waterfront developments, and logistics infrastructure.
His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, officially opened the collaboration. He emphasized the value of public-private partnerships in promoting investment opportunities and sustainable economic growth within Abu Dhabi’s innovation-driven and business-friendly economy.
In the joint ventures, Aldar will own 60% of the shares, while Mubadala will hold the remaining 40%. Four main initiatives will enable the venture to generate substantial value: the establishment of a premium retail platform; the procurement of sustainable residential and commercial properties in Masdar City; the construction of opulent waterfront communities on well-chosen islands; and the establishment of a logistics park close to Zayed International Airport.
Transforming Abu Dhabi’s retail landscape
The establishment of a $2.45 billion (AED 9 billion) retail platform that will combine Abu Dhabi’s best shopping locations is one of the partnership’s main goals. The Galleria Luxury Collection by Mubadala, an upscale shopping destination situated at the Abu Dhabi Global Market on Al Maryah Island, will merge with Aldar’s flagship Yas Mall. It is anticipated that this new retail platform will draw luxury brands from around the world and provide locals and visitors with an improved shopping experience.
Talal Al Dhiyebi, Group CEO of Aldar, commented, “This deal represents the continued evolution of our partnership with Mubadala. We’re combining Aldar’s expertise in real estate development and asset management with Mubadala’s portfolio of prime income-generating assets. Together, we will unlock significant value and contribute to Abu Dhabi’s growth as a premier global destination.”
Sustainable Development in Masdar City
Additionally, Mubadala and Aldar will form a joint venture to purchase income-producing real estate holdings in Masdar City, an Abu Dhabi-free zone and sustainable urban community, for $8.17 million (AED 3 billion). With an emphasis on sustainability, the portfolio will include commercial and residential properties totaling over 400,000 square meters of net leasable area; many of the buildings are certified LEED Gold or LEED Platinum. Currently, 95% of these properties are occupied, demonstrating how appealing the city is to renters.
Dr Bakheet Al Katheeri, CEO of UAE Investments Platform at Mubadala, added, “By combining Aldar’s proven track record in development and Mubadala’s portfolio of high-quality assets, this partnership will create long-term value, drive returns, and strengthen Abu Dhabi’s global positioning.”
Luxury waterfront living and strategic logistics hub
Another important component of the partnership is the construction of opulent waterfront communities on two prestigious islands close to Yas Island and Saadiyat. These projects are estimated to have a combined gross development value of $3.54 billion (AED 13 billion). The first island will enhance Aldar’s current opulent projects in the Saadiyat Cultural District. It is situated between Saadiyat Marina and Reem Island. The second island, which is positioned between Yas Island and Al Raha, will be developed into an upscale waterfront villa community that promotes wellness in a tranquil setting.
Furthermore, Aldar and Mubadala plan to develop a historic logistics park in Al Falah, close to Zayed International Airport, for $1.36 billion (AED 5 billion). With its 1.2 million square meter footprint and convenient access to major highways, the industrial park is anticipated to play a pivotal role as a logistics hub, catering to the increasing demand for industrial infrastructure in the area.
The completion of these projects is anticipated in the upcoming months, and this partnership will not only spur economic expansion but also increase Abu Dhabi’s allure as a location for foreign companies and investors.