Aldar Properties PJSC and Abu Dhabi's DMT Launch 20 Million-Square-Metre Real Estate Development Partnership
ABU DHABI, UAE — Aldar Properties PJSC and Abu Dhabi's Department of Municipalities and Transport (DMT) announced a public-private partnership on May 12, 2026, to deliver new integrated communities spanning more than 20 million square metres across five strategic locations in the emirate.
The agreement was signed at the Abu Dhabi Infrastructure Summit (ADIS) 2026 in the presence of senior government officials, including His Excellency Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, His Excellency Mohammed Ali Al Shorafa, Chairman of the Department of Municipalities and Transport, and His Excellency Mohamed Khalifa Al Mubarak, Chairman of Aldar. The agreement was formally executed by Abdulla Mohamed Al Blooshi, Director General of the Urban Planning and Permits Centre at the Department of Municipalities and Transport, and Talal Al Dhiyebi, Group Chief Executive Officer of Aldar.
Partnership Structure and Development Sites
Under the partnership structure, DMT will contribute strategic land while Aldar Properties PJSC will serve as master developer — a framework the parties described as a new model for urban development in the emirate. The five target sites are Muwaylih, Mussafah, Al Zahiya, Al Faya, and Al Mihsinah Island, each designated for mixed-use communities that will incorporate residential units, retail, educational facilities, green public spaces, and transport connectivity.
The communities are designed around walkable neighbourhoods and are intended to serve residents across a range of market segments, from affordable rental housing to lifestyle-focused destinations. Aldar has previously developed several of Abu Dhabi's prominent destinations, including Saadiyat Island, Yas Island, and Al Raha Beach.
"This strategic partnership marks an important step in shaping Abu Dhabi's next phase of urban growth," said Talal Al Dhiyebi, Group Chief Executive Officer of Aldar. "As the emirate continues to attract residents, businesses, and investment, there is a growing need for thoughtfully planned destinations that expand housing choice across multiple market segments while enhancing quality of life. The scale and breadth of these projects reflect Aldar's strong conviction in the long-term fundamentals of Abu Dhabi's real estate market and our continued confidence in the emirate's economic growth trajectory."
Abdulla Mohamed Al Blooshi, Director General of the Urban Planning and Permits Centre at the Department of Municipalities and Transport, said: "This partnership with Aldar represents a new model for Abu Dhabi's urban development, one that brings together strategic master planning, private-sector execution capability, and government oversight to deliver transformational growth. By collaborating with a trusted partner like Aldar, DMT can accelerate the delivery of the housing and mixed-use communities Abu Dhabi needs, while maintaining the highest standards of planning, sustainability, and quality of life."
Value Housing Programme Expansion and Residential Pipeline
A central component of the partnership is the expansion of DMT's Value Housing Programme, a government-led initiative aimed at increasing access to high-quality, affordable rental housing across Abu Dhabi. At four of the five sites — Muwaylih, Mussafah, Al Zahiya, and Al Faya — the partners plan to develop a mix of lifestyle-focused communities and Value Housing Programme residential units for both sale and rent.
The new partnership builds on a previously announced commitment to develop two integrated communities in Mohamed Bin Zayed City and Baniyas that are slated to deliver 9,000 residential units to Abu Dhabi's rental market. No specific unit counts or financial terms for the five new sites were disclosed at the time of the announcement.
Each of the four mainland sites is strategically located along major road networks, with the partnership emphasizing seamless connectivity to Abu Dhabi's wider transport infrastructure. Design for each community is intended to draw from the distinct character of its surrounding area.
Al Mihsinah Island: A First-Time Waterfront Development
Among the five sites, Al Mihsinah Island represents a distinct component of the partnership. The island, which has not previously been developed, is planned to become a waterfront residential and lifestyle destination. According to the announcement, the development will combine natural coastal surroundings with planned residential neighbourhoods and lifestyle amenities, targeting a living experience that incorporates wellness and connectivity within a waterfront setting.
Market Context
The partnership aligns with Abu Dhabi's broader urban planning priorities, which emphasize integrated community development, housing accessibility, and long-term liveability. By combining government land stewardship with private-sector development expertise from Aldar Properties PJSC, DMT and Aldar described the arrangement as a replicable model for future development across the emirate. Delivery timelines were not disclosed in the announcement.