Aldar takes over development, management of Dh30B ADQ projects

Property developer Aldar will take over Dh30 billion worth of projects from government entity ADQ as part of Abu Dhabi government’s efforts to promote public-private partnership and support local real estate sector.

Aldar will take over the development and management of Riyadh City and Baniyas North projects as well as other developments in Al Ain and Al Dhafra regions. In addition, the handover also includes villas for the UAE nationals and associated infrastructure.

Aldar will also manage Musanada’s projects ranging from education, healthcare, infrastructure, social services, and facilities management to ensure consistency of existing government capital infrastructure projects.

The news pushed Aldar shares higher by 1.84 per cent to Dh2.21 per share on Sunday.

Its second quarter net profit increased two per cent to Dh484 million while revenues grew 21 per cent to Dh2.01 billion. The company’s second-quarter report showed that with project handovers gaining momentum and Aldar taking a cautious approach to new project launches, the revenue backlog decreased to Dh3.3 billion at the end of June.

“Aldar’s strong track record will ensure the continued development of a range of highly important government projects in Abu Dhabi. In particular, the agreement marks significant progress toward the delivery of major infrastructure and national housing schemes across the emirate,” said Mohamed Hassan Al Suwaidi, CEO of ADQ.

“We have proven over many years our ability to successfully deliver a range of major residential, commercial and infrastructure projects on behalf of the Government of Abu Dhabi. The transaction, which is fully aligned with our business development strategy, will significantly support future profit growth,” said Talal Al Dhiyebi, CEO of Aldar Properties.

Aldar expects to take over the management of the government projects before the end of this year, ensuring that all existing projects, which are scheduled to be delivered over the next five years, will continue to be developed.

-waheedabbas@khaleejtimes.com