Aldar Properties awards $6 billion development contracts in 2023

Significant investments to boost Abu Dhabi's development
Aldar Properties awards $6 billion development contracts in 2023
Nearly 50 percent of the total contract value will be reinvested into the local economy (Image source: WAM)

Aldar Properties, a leading real estate development company in Abu Dhabi, announced it has awarded 49 contracts worth AED 22 billion ($6 billion) for a range of infrastructure, residential, commercial, and mixed-use projects across the emirate in 2023.

The contracts, awarded to 36 UAE-based companies, signify a substantial investment in Abu Dhabi’s development and a significant contribution to the local economy. They also align with the UAE government’s National In-Country Value (ICV) program. 53 percent of the contracts were awarded for Aldar-owned projects. Meanwhile, the remaining 47 percent of the projects will be delivered on behalf of the Abu Dhabi government.

Impact on local economy

Nearly 50 percent of the total contract value, amounting to AED10.5 billion, will be reinvested into the local economy. This aligns with the ICV program that is part of the UAE government’s Projects of the 50 initiative. It also underscores Aldar’s commitment to driving economic and social development, job creation, and the growth of the national GDP.

The contracts Aldar Properties awarded encompass a diverse range of developments. They include residential villas, townhouses, apartments, Grade A offices, retail spaces, schools, and major highways. These projects are strategically located in key growth areas of Abu Dhabi, such as Yas Island, Saadiyat Island, and Al Shamkha, contributing to the emirate’s urbanization and infrastructure enhancement.

Sustainable procurement practices

Adel Abdulla Albreiki, CEO of Aldar Projects, emphasizes Aldar Properties’ focus on sustainability within its procurement process. All contractors are required to adhere to Aldar’s Net Zero commitments. The commitments prioritize factors such as low-carbon design, green construction, and circular economy principles. This ensures that development projects not only meet immediate needs but also contribute to long-term environmental goals.

Read: Abu Dhabi real estate transactions exceed $1.3 bn in January 2024

Project highlights

On Saadiyat Island, Aldar Properties awarded contracts for the development of Saadiyat Lagoons and Saadiyat Grove. The projects introduced over 2,000 residential units and a world-class retail destination. Similarly, on Yas Island, projects such as Yas Park Gate and Yas Park Views will offer residential options close to premier leisure attractions, alongside the development of Grade A office space to meet commercial demand.

In the Al Shamkha area, developments like Fay Al Reeman II and Balghaiylam will add hundreds of residential units to the housing market. Moreover, they cater to Abu Dhabi’s diverse community needs. Additionally, Aldar Properties awarded major infrastructure projects to reputable contractors, further enhancing the connectivity and functionality of Abu Dhabi’s urban landscape.

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