TARAF and Mubadala Investment Company Sign MoU for 5.4M-Square-Foot Mixed-Use Development on Abu Dhabi's Al Reem Island

TARAF, the real estate division of UAE-headquartered investment holding group Yas Holding, and Mubadala Investment Company, an Abu Dhabi sovereign investor, have signed a Memorandum of Understanding to explore the development of a mixed-use waterfront destination on Al Reem Island. The agreement was announced Sept. 30, 2026, during LIVEX 2026.

The MoU establishes a framework for the two parties to assess and progress a proposed masterplan spanning 10 plots across approximately 655,000 square feet of land, with a total gross floor area of approximately 5.4 million square feet. The agreement represents an early-stage development arrangement; no construction timeline, development cost, or investment commitment was announced.

Proposed Development Program

Under the proposed masterplan, the Al Reem Island development would bring together residential, commercial, retail, and food and beverage offerings within an integrated plan. The residential component would include one- to four-bedroom apartments and penthouses, alongside dedicated public and commercial spaces and an integrated retail and food and beverage offering.

Central to TARAF's proposed design is a focus on livability and connectivity. Landscaped pedestrian routes, public spaces, and plazas would connect the residential and commercial components, strengthen access to the waterfront, and create a walkable environment. At ground level, retail, dining, and community amenities would contribute to an active public realm.

Low Ping, Group CEO of Yas Holding, said the island represents an opportunity to contribute to its continued evolution through a more integrated approach to development. "Our ambition is to create long-term value through considered design, stronger connectivity and a high-quality public realm that enhances the experience of the wider community," Low Ping said. "For TARAF, this is also an important opportunity to apply our design-led approach at a destination scale, creating places that are not only well designed, but enhances people's quality of life."

Mubadala's Role as Investment Partner

The MoU was signed by Ali Eid AlMheiri, Executive Director, Diversified Assets, UAE Investments Platform at Mubadala, and Low Ping, Group Chief Executive Officer of Yas Holding. The agreement was witnessed by Dr. Bakheet Al Katheeri, Chief Executive Officer of Mubadala's UAE Investments platform, and Wissam El Dik, Chief Development Officer of Taraf Development.

Ali Eid AlMheiri said Mubadala's participation reflects a shared ambition to support Al Reem Island's growth as a destination centered on livability and community. "Al Reem Island is a key residential and economic waterfront district and continues to contribute to Abu Dhabi's urban growth," Ali Eid AlMheiri said. "By combining residential, commercial, retail and public spaces within one coordinated vision, we aim to reinforce Mubadala's commitment to creating lasting value."

Mubadala's involvement positions the sovereign investor as an active investment partner in shaping a major domestic urban project, while the MoU structure retains flexibility for both parties to assess the scheme before definitive development or investment agreements are signed. Mubadala manages a global portfolio of approximately US$385 billion across six continents. The firm reported assets under management increased 17% in 2025, with five- and ten-year annualized returns exceeding 10%, and deployed approximately AED143 billion of capital during that year.

The Al Reem Island MoU follows other Mubadala real estate activity in Abu Dhabi, including an Aldar-Mubadala joint venture that expanded its investment in Masdar City through the acquisition of Masdar City Square.

Al Reem Island Market Context

Al Reem Island is already one of Abu Dhabi's largest investment-zone residential markets. The island held approximately 27,500 residential units in the first half of 2026, making it the emirate's leading investment-zone residential district by unit count. The island is among six districts expected to drive most of Abu Dhabi's incremental residential supply through 2030.

Abu Dhabi's broader residential market entered the second half of 2026 with supply reaching approximately 409,000 units across the emirate, growing at an average annual rate of 2.9% since 2022. Approximately 71,000 additional residential units are projected by 2030, with annual deliveries expected to peak at about 21,800 units in 2028. Apartment repeat-sale prices increased 20% year over year in the first half of 2026, while villa prices rose 12% over the same period.

The emirate recorded approximately 233,000 active residential lease contracts in the first half of 2026, with total lease values of AED9.3 billion, up 8% year over year. Rental units represented 69% of occupied units in the Abu Dhabi Region, reflecting a deep tenant market alongside expanding ownership demand.

Commercial and Mixed-Use Market Conditions

The commercial components of the proposed development would enter relatively tight office and retail segments. Abu Dhabi office supply stood at approximately 3.4 million square metres in the first half of 2026, with overall, prime, and Grade A occupancy at roughly 95%. New office lease prices increased 13% in the first half of 2026, with rents across grades rising between 8% and 20% year over year as of the first quarter of 2026.

Retail supply reached approximately 3.85 million square metres of gross leasable area, with occupancy in the mid-90% range and new lease prices up 9%. The proposed integration of offices, residences, shops, dining, and public spaces is consistent with occupier and investor preference for mixed-use environments that can generate activity throughout the day and provide multiple revenue streams.

For TARAF, the proposed scheme would represent a substantial increase in scale relative to its positioning as a boutique, design-led developer. A 5.4 million-square-foot masterplan would allow the firm to apply its design approach across a destination-scale project in one of Abu Dhabi's most established waterfront residential districts.

About the Companies

TARAF is a boutique property developer based in the UAE and the real estate division of Yas Holding. The firm's portfolio spans residential communities, waterfront developments, and branded residences across Abu Dhabi and Dubai, including collaborations with internationally recognized hospitality and lifestyle brands.

Mubadala Investment Company is a sovereign investor managing a global portfolio aimed at generating sustainable financial returns for the Government of Abu Dhabi. Mubadala's US$385 billion portfolio spans six continents, with interests across multiple sectors and asset classes.

Sources: Mubadala Investment Company