Aldar Properties and Arada Form AED 15 Billion Partnership for Abu Dhabi Mixed-Use and Residential Development

Aldar Properties PJSC and Arada announced a strategic partnership on Sept. 30 covering approximately AED 15 billion ($4.1 billion) in development opportunities across two Abu Dhabi locations, marking the Sharjah-based developer's first entry into the Abu Dhabi market.

The initial agreements comprise a joint venture to co-develop a large-scale mixed-use community at Seih Sdeirah, near the Abu Dhabi–Dubai border, alongside Arada's acquisition of three residential development plots from Aldar on Yas Island.

Seih Sdeirah Joint Venture

At Seih Sdeirah, the two developers will co-develop a mixed-use community across up to 1.5 million square meters — approximately 16.1 million square feet — of land. The project is envisioned as a villa and townhouse community incorporating retail, recreational facilities and community amenities.

Under the joint venture structure, Arada will lead development and construction management, while both companies will jointly brand and sell the community. The arrangement allows Aldar to contribute its established Abu Dhabi landbank and development platform while Arada assumes operational leadership on the ground.

Yas Island Residential Plots

Separately, Arada acquired three development plots from Aldar on Yas Island for new residential projects. The three plots — two of which are canal-facing — have a combined plot area of more than 27,500 square meters and a total gross floor area of nearly 130,000 square meters, or approximately 1.4 million square feet. The acquisition gives Arada a foothold in one of Abu Dhabi's primary residential investment zones.

The AED 15 billion figure represents the combined value of development opportunities across both components and should not be interpreted as a cash purchase price or committed construction expenditure.

Executive Commentary

The agreements were signed by Jonathan Emery, Chief Executive Officer of Aldar Development, and Ahmed Alkhoshaibi, Group Chief Executive Officer of Arada, in the presence of HRH Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, and Talal Al Dhiyebi, Group Chief Executive Officer of Aldar.

"This partnership brings together two leading UAE developers with complementary capabilities and a shared ambition to create high-quality destinations," Talal Al Dhiyebi said. "The opportunities on Yas Island and at Seih Sdeirah establish a strong foundation for our collaboration with Arada, and we see significant potential to build on the partnership across sectors and geographies in the UAE."

"This partnership with Aldar marks a significant moment in Arada's journey in the UAE," Ahmed Alkhoshaibi said. "Aldar's scale, vision and established platform in Abu Dhabi create exactly the right foundation for the kind of communities we intend to build here, and the opportunities ahead of us, across both Abu Dhabi and elsewhere across the UAE, are considerable. This is the beginning of what we intend to be a long and productive collaboration, and we look forward to what we will build together."

Market Context

The partnership arrives as Abu Dhabi's residential market continues to expand. The emirate held approximately 409,000 residential units in the first half of 2026, with stock growing at an average annual rate of 2.9% since 2022. Investment zones accounted for more than 22% of total residential stock, or roughly 72,000 units, with Yas Island among the leading locations.

Abu Dhabi's residential pipeline is projected to grow materially through the end of the decade, with approximately 71,000 additional units expected by 2030 and annual deliveries forecast to peak at about 21,800 units in 2028. Six districts, including Yas Island, are expected to generate 77% of projected incremental supply through that period.

Yas Island alone had approximately 7,700 units under construction as of 2026, making it Abu Dhabi's largest community-level residential pipeline. The broader 2026–2030 Abu Dhabi pipeline included approximately 36,900 units under construction, composed of roughly 66% apartments and 33% villas. The Seih Sdeirah project's focus on villas and townhouses positions it toward the lower-density segment of the market, which represents a smaller share of current construction activity.

Aldar reported AED 12.4 billion in revenue for the first half of 2026, a 10% increase year over year, with EBITDA rising 21% to AED 4.0 billion. Its develop-to-hold pipeline expanded by AED 2.8 billion to AED 20.1 billion during that period. The company's second-quarter net profit reached AED 2.16 billion, up 10% annually.

Outlook

Both companies described the Yas Island and Seih Sdeirah transactions as the first phase of a broader strategic relationship. The firms said they intend to explore further collaboration across sectors, asset classes and geographies in the UAE. For Arada, the partnership provides access to Aldar's Abu Dhabi landbank and sales network; for Aldar, it brings in a development and construction management partner for large-scale community projects.

The partnership's success on Yas Island will depend in part on product differentiation and launch timing in a submarket where competing supply is substantial. The Seih Sdeirah project, centered on lower-density residential formats, targets a segment that accounts for a minority of Abu Dhabi's current construction pipeline.

Sources

Aldar Properties PJSC — Official Announcement