Arada Capital and Alya Plan AED 6 Billion Property Development Pipeline Across UAE
New strategic partnership explores premium residential projects in Downtown Dubai and Abu Dhabi's Yas Island, with further expansion opportunities in Saudi Arabia
Arada Capital and Alya have entered into a strategic partnership to explore major real estate development opportunities across the UAE and Saudi Arabia, with an initial project pipeline valued at approximately AED 6 billion ($1.6 billion).
The two companies have signed a memorandum of understanding (MoU) to assess opportunities for developing premium residential and mixed-use properties in both markets. Their initial plans focus on two residential developments in the UAE, with potential locations including Downtown Dubai and Yas Island in Abu Dhabi.
The proposed projects form part of a wider development pipeline that the companies intend to evaluate as they work towards expanding their presence in the regional property sector.
The collaboration will combine Arada Capital's access to the Arada Group's development opportunities and experience in delivering large-scale communities with Alya's residential development expertise and institutional investment approach.
Downtown Dubai and Yas Island among targeted locations
The initial phase of the partnership will concentrate on two potential residential developments with a combined gross development value (GDV) of around AED 6 billion.
Downtown Dubai and Yas Island have been identified as locations under consideration, offering opportunities for premium residential projects in two established UAE property destinations.
However, the proposed developments remain subject to due diligence, commercial agreements and the required regulatory approvals before moving forward.
The partnership also aims to assess additional development opportunities in Saudi Arabia, reflecting the companies' broader ambitions across the Gulf real estate market.
Institutional investment and development expertise
The agreement brings together two organisations with complementary capabilities in real estate investment and development.
Arada Capital, the investment management arm of UAE developer Arada, will contribute access to the group's established development pipeline and its experience in planning and delivering large-scale residential communities.
Alya will contribute its expertise in premium residential development, supported by an institutional investment structure focused on governance, capital management and project execution.
Alya is backed by Brookfield and Abu Dhabi-based Lunate, which brings additional institutional investment experience to the proposed collaboration.
The partnership is intended to combine development capabilities, investment resources and project management expertise to explore residential opportunities across the region.
Companies target long-term growth across the GCC
The MoU represents an initial step towards establishing a longer-term working relationship between Arada Capital and Alya.
Both organisations aim to identify projects that combine quality residential design, carefully selected locations and disciplined development execution.
The UAE and Saudi Arabia remain the two markets targeted under the wider collaboration, with the initial AED 6 billion pipeline providing a starting point for evaluating potential developments.
If the proposed projects progress following the necessary assessments and agreements, the partnership could add further premium residential supply to Dubai and Abu Dhabi's property markets.
The agreement also highlights continued interest in institutional investment partnerships within the UAE's real estate sector, particularly in developments targeting established residential locations and long-term market demand.
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