Aldar announces $1.4 billion investment in Abu Dhabi's commercial and hospitality sector

Aldar Properties investment: Aldar Properties, the largest developer in Abu Dhabi, unveiled plans on Tuesday to invest 5 billion dirhams ($1.36 billion) in constructing new office, retail, and hospitality properties in the emirate by 2027.

The upcoming properties will be strategically situated in key locations, including Al Maryah Island, Abu Dhabi's financial district, as well as Yas Island and Saadiyat Island. This move aims to cater to the escalating corporate demand for Grade A office spaces, as stated in a bourse statement released by Aldar.

With the announcement, Aldar's shares surged by approximately 2 per cent by 0730 GMT, surpassing the 0.5 per cent increase in Abu Dhabi's main index.

Among the upcoming developments is a 12-storey office tower on Yas Island, a business park on Saadiyat Island, and a second commercial tower on Al Maryah Island. These projects are slated to be completed in phases between 2025 and 2027.

Once finalised, these properties will be integrated into the Aldar Investment Properties' portfolio, which currently includes US private equity firm Apollo as a minority shareholder, according to the company's statement.

Abu Dhabi's financial district is undergoing expansion, with its jurisdiction area expected to increase tenfold by incorporating al-Reem Island alongside its existing location on al-Maryah Island, as reported by Reuters in September.

Notably, Abu Dhabi has emerged as a prominent hub for various financial entities, including hedge funds, family offices, venture capital firms, and crypto traders. Renowned figures such as billionaire Ray Dalio, founder of hedge fund Bridgewater Associates, have established a presence in the UAE capital. Additionally, Aldar Properties boasts a 25 per cent ownership by Mubadala and a 26 per cent ownership by International Holding Company, which operates under the purview of Sheikh Tahnoon bin Zayed al-Nahyan, the UAE's national security adviser and brother to the president.
 
(With Reuters inputs.)