Abu Dhabi, Aldar Properties to develop Dhs45b projects

The Abu Dhabi Executive Council has approved a framework between Abu Dhabi government and Aldar Properties for the development of capital projects worth Dhs45 billion in the emirate.

The decision follows the recommendation of the Abu Dhabi Executive Committee to establish a public-private partnership framework for the development of capital projects in the emirate and the subsequent Memorandum of Understanding signed between ADQ and Aldar Properties.

The framework includes Aldar taking on the management of Dhs30 billion worth of major projects such as Riyadh City, Baniyas North and developments in the Al Ain and Al Dhafra regions. Together the projects will deliver approximately 25,000 homes for UAE nationals as well as associated infrastructure over the next five years. In addition, Aldar will provide management oversight of Dhs10 billion worth of Musanada’s projects in education, healthcare, infrastructure, social services, and facilities management.

The projects will provide a significant positive impact on the wider Abu Dhabi economy. Aldar’s ‘in-country value’ (ICV) programme gives priority to local contractors, consultants, and suppliers - including SMEs - for most contract awards.

Aldar’s fee-based development management business is also managing Dhs5 billion worth of infrastructure projects awarded by the Abu Dhabi Government in 2019, which includes Al Falah national housing, Media Zone Abu Dhabi on Yas Island and Saadiyat infrastructure works.

Aldar Properties reported a 30% year on year increase in revenue to Dhs2.1 billion. Gross profit was up 5% to Dhs696 million and net profit rose 8% to Dhs416 million, driven by record quarterly home sales in its core market, Abu Dhabi.

Aldar produced a 7% year-on-year increase in development sales to a record Dhs1.2 billion for the third quarter. This brought year to date total sales to Dhs2.0 billion, with prime Abu Dhabi destinations of Saadiyat Island and Yas Island continuing to attract investors and end-users.

The Abu Dhabi real estate market has held firm this year despite the challenging global macro-economic environment, supported by incentives for home buyers, measured supply of new units, and government programmes to promote private sector growth.  

The company recorded a 21% year-on-year increase in revenue to Dhs2.01 billion in the second quarter of 2020, due to a strong performance from the development business.

The company net profit for the second quarter increased 2% from the previous year to Dhs484 million.

Revenue growth was driven by robust demand for its prime developments and infrastructure-enabled land, while Aldar continued to earn steady fee income from its third-party development management business.

Mubadala, Schneider Electric deal: Mubadala Investment Company, the Abu Dhabi-based global investor, and Schneider Electric, the global leader in the digital transformation of energy management and automation, have agreed to collaborate in a number of sustainability-related areas, both in the United Arab Emirates and globally.

The agreement provides for the exploration of a multi-faceted collaboration across a number of business opportunities, including Energy as a Service solutions in Europe, the Middle East, Africa and elsewhere globally, as well as manufacturing opportunities in the UAE. More broadly, the companies will pursue development of education and research initiatives with leading academic institutions in Abu Dhabi, and explore additional areas for collaboration in clean energy and sustainability.

The Memorandum of Understanding (MoU) was signed by Musabbeh Al Kaabi, Chief Executive Officer of UAE Investments at Mubadala Investment Company, and Caspar Herzberg, Middle East and Africa President at Schneider Electric, on the sidelines of the Abu Dhabi Sustainability Week.

Musabbeh Al Kaabi said, “This agreement is an important development in Mubadala’s strategy of advancing the development, commercialisation and deployment of clean energy solutions and innovative technologies globally as well as adding to Abu Dhabi’s position as a global center of excellence in the sector.”

“Through Masdar and other energy and technology focused companies in our portfolio, in addition to our partnerships with world-class companies, like Schneider Electric, we are building on the UAE’s strong energy heritage and playing a significant role in advancing the transition to lower carbon-intensive solutions required to meet the world’s growing energy needs,” added Al Kaabi.