Arada and Alya Forge Strategic Partnership to Develop $1.63 Billion Premium Property Pipeline in UAE and Saudi Arabia

UAE-based developer Arada has announced a significant collaboration with Alya Developments, aiming to explore co-investment opportunities in the premium property sectors of the United Arab Emirates and Saudi Arabia. This strategic move follows Arada's recent expansion into the Saudi kingdom.

Arada Capital, the newly established investment management arm of Arada, and Alya have inked a preliminary agreement to investigate premium developments across the UAE and Saudi Arabia, potentially representing a pipeline valued at Dh6 billion ($1.63 billion), according to a joint statement released on Thursday.

The partnership's initial focus will be on two projects within the UAE, with Yas Island in Abu Dhabi and Downtown Dubai identified as prospective locations. Specific plans for Saudi Arabia were not detailed in the statement.

Arada Capital, launched in July, has set an ambitious target of managing $5 billion in assets within the next four years. The parent company, Arada Group, is a joint venture between Saudi businessman Prince Khaled bin Alwaleed's KBW Investments and the Sharjah-based Basma Group.

Alya Developments benefits from the backing of Canada's Brookfield, a global asset manager overseeing approximately $1 trillion, and Abu Dhabi-based Lunate, an investment firm with over $125 billion in assets under management.

This collaboration comes on the heels of Arada's recent launch of a Dh14 billion residential project in Riyadh, underscoring its commitment to expanding its presence in Saudi Arabia. The group's chief executive has also articulated plans to construct 100,000 homes across Saudi Arabia over the next three to five years. Arada's operational footprint extends internationally, with existing projects in Australia, Syria, and the UK.

Moustafa Fahour, Chief Executive and Managing Director of Arada Capital, commented, "This partnership represents an important milestone in Arada Capital's ambition as a fund manager. We see significant potential to bring forward premium residential projects distinguished by their quality, thoughtful design, and disciplined delivery."

Otto Dreyer, Chief Executive of Alya, added, "Our shared ambition is to create homes of enduring quality and value, for the people who live in them and those who invest in them."

Despite concerns regarding a potential market slowdown, exacerbated by ongoing geopolitical tensions, property developers in the UAE continue to launch new projects. This week, Dubai's Nakheel unveiled its new Palm Springs master development adjacent to Palm Jebel Ali. Last month, Abu Dhabi's Aldar Properties announced plans for a significant villa and townhouse development in Dubai by year-end as part of its UAE-wide expansion.

In September, Arada and Aldar collaborated on new housing projects in Abu Dhabi, located on Yas Island and at Seih Sdeirah, with a combined value of approximately Dh15 billion. Arada has also revealed plans for a $7 billion development in Damascus, styled after UAE projects.

Meanwhile, Saudi Arabia is actively stimulating its real estate sector as part of its broader economic diversification strategy. The kingdom implemented an updated property ownership law for non-Saudis in January, permitting foreign individuals and companies to acquire real estate under specific regulatory and geographical conditions, aiming to attract international developers and boost investment.

Mr. Fahour further stated, "The UAE and Saudi Arabia continue to present compelling long-term opportunities, and our focus is on bringing together the right partners, capital, and expertise to deliver sustainable value for investors and communities alike."

Second Australia Approval Secured

In a separate announcement on Thursday, Arada confirmed it has received approval for its Dh1.6 billion Wattle Green residential community in Castle Hill, New South Wales, Australia. This project, spanning 14,000 square meters, is slated to feature 445 residences across three buildings.

This marks Arada's second major planning consent in Australia within just over a month, following the approval of the 33-storey London Place residential project in Campsie, near Sydney, in early September.

Ahmed Alkhoshaibi, Arada Group Chief Executive, remarked, "We are pushing ahead with our pipeline of projects at a time when we know delivery in this market demands real conviction."