Abu Dhabi’s local executive authority Abu Dhabi Executive Council has endorsed a framework between Abu Dhabi Government and Aldar Properties, a real estate development, management, and investment company, to develop $12.3 billion (AED45 billion) worth of capital projects in the Emirate.
In a stock market filing, the developer said that the decision follows the recommendation by the Abu Dhabi Executive Committee to create a public-private partnership (PPP) for the development of capital projects in the Emirate.
Based on the recommendation, ADQ, a holding company with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy and Aldar Properties have signed a Memorandum of Understanding (MoU) last year, to take over the development and management of government capital projects.
The framework involves Aldar taking over the development and management of approximately $8 billion (AED 30 billion) worth of government capital projects, such as Riyadh City, Baniyas North, and developments in the Al Ain and Al Dhafra regions. Together, the ventures will provide UAE nationals with nearly 25,000 homes as well as related facilities over the next five years.
In addition, Aldar will provide management oversight of $2 billion (AED10 billion) worth of Musanada’s projects in education, healthcare, infrastructure, social services, and facilities management sectors.
The ventures would have a major positive effect on the broader economy of Abu Dhabi. Aldar’s ‘in-country value’ (ICV) program gives preference to local contractors, consultants, and suppliers, including SMEs.
Meanwhile, Aldar’s fee-based development management business is also managing $1.36 billion (AED5 billion) worth of infrastructure projects awarded by the Abu Dhabi Government in 2019, including Al Falah national housing, Media Zone Abu Dhabi on Yas Island, and Saadiyat infrastructure works.