Following to its earlier commitment of infusing $5 million into the Bedaya Fund to provide greater funding opportunities to the startups in the MENA Region, the UAE government’s hub for supporting private sector investment, Abu Dhabi Investment Office (ADIO) has moved on to finalize improvements to the Musataha agreement that will provide private sector investors greater possibilities to perform long-term projects in the emirate.
As per the official press release circulated by ADIO, the Musataha rights enable the private sector to improve land owned by government agencies and benefit from the projects that are developed.
ADIO has finalized the new form of Musataha agreement to maximize the gains for both the private and public sectors, including executing a highly competitive pricing model with flexible and attractive terms for companies looking to grow in Abu Dhabi.
The Musataha agreements can be employed to land use in any economic sector. In line with its focus on developing Abu Dhabi’s advanced agriculture sector, ADIO is currently working with the Abu Dhabi Agriculture and Food Safety Authority, ADAFSA, on a $272 million pipeline of investments in the food production and processing space. Each project will utilize complex farming methods and can quickly move to commercial production, significantly increasing the supply of local produce.
“Unlocking the full potential of Abu Dhabi’s public land is an important step towards unleashing the full power of our economy. Long-term investment decisions that stretch decades into the future require certainty and clarity from the outset. ADIO is working with partners across the government to maximise the benefits of Musataha agreements and ensure they continue to play an important role in facilitating strategic investments into the economy.”
The newly structured Musataha agreement will facilitate stronger partnerships between the public and private sectors and intend to urge investors to commit with confidence to long-term business opportunities and expand existing operations in Abu Dhabi.
“ADIO is here to ensure that Musataha agreements deliver value for investors while providing reasonable benefits to landowners. We have taken steps to add flexibility and efficiency to the form of Musataha agreement to be entered into between a private sector participant and government, to increase investor confidence. By unlocking the potential of our land, Abu Dhabi is providing investors and companies with increased opportunities to bring bold projects to life. We already have a strong pipeline of projects in place and are keen to grow this further.”
ADIO is currently working with its partners across the government to examine an extensive pipeline of projects that will encourage long-term investment into Abu Dhabi. Sectors include food production and processing, leisure and tourism, community services, industry and technology and energy.