Arada Capital and Alya Sign MoU for AED 6 Billion Residential Co-Investment Partnership

Arada Capital has signed a memorandum of understanding with Alya, a new institutional platform focused on luxury residential development in the Gulf Cooperation Council, to form a development and co-investment partnership. The agreement, announced Nov. 12, 2026, targets premium and mixed-use residential projects in the United Arab Emirates and Saudi Arabia, with an initial phase of two residential projects valued at roughly AED 6 billion ($1.63 billion) in combined development value.

Arada Capital and Alya Partnership: Key Terms

The proposed partnership pairs access to the development pipeline of Arada Group, available through Arada Capital, and Arada's experience in large-scale integrated communities with Alya's expertise in real estate development, value creation, institutional governance and disciplined capital management. Alya is backed by Brookfield and Lunate. Lunate is an Abu Dhabi-based global investment firm that manages assets exceeding $125 billion.

The first phase comprises two residential projects with a combined anticipated development value of about AED 6 billion. These form part of a broader set of investment opportunities the two parties plan to evaluate. The projects remain subject to due diligence, commercial agreements and required approvals. The memorandum of understanding is a preliminary, non-binding framework rather than a completed transaction.

Downtown Dubai and Yas Island Under Consideration

The opportunities under review include projects in Downtown Dubai and on Yas Island in Abu Dhabi, to be followed by a wider range of opportunities.

Abu Dhabi's residential market recorded 6,085 transactions in the third quarter of 2026, with off-plan sales accounting for 81% of activity. Average apartment values rose 9% year over year, while villa and townhouse values increased 8%. Abu Dhabi transactions above AED 10 million rose 35% quarter over quarter in the period, although overall residential transactions fell 19% from the prior quarter. Yas Island is among the districts expected to receive new supply as Abu Dhabi adds approximately 68,000 residential units by 2030.

Executives Comment on the Arada Capital Partnership

Alya Chief Executive Otto Dreyer said successful projects are built on strong partnerships, mutual trust, shared objectives and a commitment to long-term value. He said Alya applies its experience in real estate development, institutional governance and disciplined capital management to luxury residential development across the GCC, with quality considered at every stage from concept and design through delivery and customer experience.

"This proposed partnership brings together those strengths with Arada's track record in integrated community development, and together we aim to develop homes that maintain their quality and value over the long term, benefiting residents and investors alike," Dreyer said.

مصطفى فهور, chief executive officer and managing director of Arada Capital, said the partnership marks an important step in Arada Capital's development as an ambitious fund management company. He said combining Arada Group's established development expertise and access to promising investment opportunities with Alya's institutional capabilities and the support of Brookfield and Lunate creates broad opportunities for luxury residential projects distinguished by quality, considered design and efficient execution.

فهور added that the UAE and Saudi Arabia continue to offer attractive long-term opportunities, and that the focus is on bringing together the right partners, capital and expertise to deliver sustainable value for investors and communities.

The two parties said successful residential projects begin with an understanding of the site, the community and residents' needs, and that the partnership will support this approach through considered decision-making and institutional oversight. They described the memorandum of understanding as a first step toward long-term collaboration.

Market Context and Outlook

For Arada, the arrangement extends the group's role from developer and master-planner toward institutional capital management through Arada Capital. Arada has also been expanding its presence in Saudi Arabia and has a wider project pipeline valued at roughly $50 billion. That figure reflects pipeline value rather than invested capital, contracted revenue or completed development value.

The AED 6 billion figure represents a combined development-value estimate for the initial two projects, not a sale price or committed investment amount. Project identities, capitalization, delivery schedules and economics will become clearer following due diligence and definitive agreements.

Sources

Arada, "أرادَ كابيتال وعليا توقّعان مذكرة تفاهم لشراكة استثمارية في القطاع السكني تستهدف مشاريع أولية قيمتها 6 مليارات درهم," Nov. 12, 2026: https://www.arada.com/ar/latest-news/arada-capital-and-alya-sign-residential-co-investment-partnership-mou-targeting-initial-aed6bn-development-pipeline/