The Abu Dhabi Executive Committee is leading the establishment of a structure for a public-private partnership to undertake capital projects in the Emirates, as part of the efforts of the Abu Dhabi Government to boost the real estate sector of the Emirates and public-private partnership initiatives.
In this context, ADQ, a holding company with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy and Aldar, a real estate development, management and investment company have signed a Memorandum of Understanding (MoU) in which Aldar will take over the development and management of approximately $8 billion (AED 30 billion) in government capital projects.
The largest among the projects is the Riyadh City and Baniyas North projects, as well as other projects in the Al Ain and Al Dhafra regions, which will together include more than 25,000 land and villas for UAE Nationals and associated infrastructure.
To ensure the consistency of current government capital infrastructure programs, Aldar will also have management oversight of Musanada’s projects. There is currently a wide pipeline of active projects in Musanada, ranging from education, healthcare, infrastructure, social services and management of facilities.
Aldar aims to complete the takeover of government project management by the end of this year to ensure that all current projects, scheduled for delivered in the next five years, can continue to be built.
“Aldar’s real estate sector leadership and strong track record will ensure the continued development of a range of highly important Government projects in Abu Dhabi. In particular, the agreement marks significant progress toward the delivery of major infrastructure and national housing schemes across the emirate. Importantly, it aligns commercial and strategic operations in the sector.”
Talal Al Dhiyebi, CEO of Aldar Properties said, “We have proven over many years our ability to successfully deliver a range of major residential, commercial and infrastructure projects on behalf of the Government of Abu Dhabi. The transaction, which is fully aligned with our business development strategy, will significantly support future profit growth.”
The ‘In-Country Value’ (ICV) program of Aldar would ensure that most contracts are prioritized by local contractors, consultants, manufacturers, like SMEs, to ensure that the local economy is reinvested to the full extent possible. At the same time, Aldar will ensure that the implementation of these projects is consistent with the company’s sustainability goals, especially with regard to environmental standards, the procurement of materials and the welfare of workers.