Aldar awarded contracts worth $6bn in 2023

About half of the contracts' total value is being recirculated to the local economy, Abu Dhabi-listed developer says

Aldar's headquarters in Abu Dhabi. Victor Besa / The National

Aldar Properties, Abu Dhabi’s largest listed developer, awarded 49 contracts worth Dh22 billion ($6 billion) last year, as it expanded its portfolio amid continued growth in the emirate's real estate market.

Aldar awarded the contracts to 36 UAE-based companies for its infrastructure, residential, commercial, and mixed-use developments across the capital, it said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.

Almost 50 per cent of the total value – Dh10.5 billion – is being recirculated to Abu Dhabi's economy, in line with the National In-Country Value (ICV) programme, Aldar said.

“Once completed, these projects will not only help to satisfy demand for new residential options in the capital, but also deliver new office and retail spaces, and make the emirate more connected through a series of infrastructure improvements,” Adel Abdulla Albreiki, chief executive of Aldar Projects, said.

About 53 per cent of the contracts awarded were for Aldar's own projects, while the remainder are for the developments the company is delivering on behalf of the Abu Dhabi government.

When completed, these projects will add to inventories of villas, townhouses, apartments, Grade-A offices, retail spaces, schools, and major highways within some of Abu Dhabi’s key growth locations, including Yas Island, Saadiyat Island and Al Shamkha, Aldar said.

All Aldar contracts are also aligned with the UAE climate goals and adhere to net zero commitments.

“Aldar places sustainability as a key credential within its procurement process, ensuring that all contractors are positively contributing to our net zero commitments, which encompass a number of critical levers, including low carbon design, low carbon supply chain, green construction and circular economy,” Mr Albreiki said.

The ICV programme, part of the UAE's Projects of the 50, aims to boost the growth of UAE-based industries by redirecting half of government spending on procurements and tender contracts into the national economy by 2031.

It has expanded significantly since the launch and offers growth opportunities for companies in priority sectors, such as heavy industries, space technology, hydrogen and medical technology.

The property market in the UAE bounced back strongly from the pandemic-driven slowdown in 2021 and it has maintained a robust growth momentum.

Aldar, the developer behind Abu Dhabi's Formula One circuit and other developments in the emirate, awarded Trojan General Contracting in partnership with Arabian Construction Company (ACC), a contract on Saadiyat Island to develop the first two phases of Saadiyat Lagoons. The third phase was awarded to Innovo Build.

In total, more than 2,000 residential units will be developed by the contractors at Saadiyat Lagoons.

On Yas Island, Fibrex was selected to develop homes at Yas Park Gate and Yas Park Views. The project includes the development of 849 units. ACC was awarded a contract to develop a Grade A office tower, responding to the demand for commercial space on Yas Island.

Nurol has been awarded the villa and infrastructure works at Fay Al Reeman II, which will add 557 residential units in the Al Shamkha area.

Another contract was awarded to Trojan for villa and infrastructure works at Balghaiylam, a new community for the UAE citizens being developed in partnership with Abu Dhabi Housing Authority. It will feature 1,743 homes.

On Tuesday, Aldar said it would invest Dh5 billion to develop a range of income-generating assets in Abu Dhabi, with a focus on commercial, retail and hospitality sectors amid growing demand for property in the UAE.

Last month, the developer also unveiled a residential development on Yas Island, comprising 234 apartments, duplexes and penthouses.

Aldar has also been expanding its global presence. On Thursday, the company announced a Dh407 million investment in logistics and storage assets in Europe through a partnership with global investment firm Carlyle.