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Sat 27 Jul 2019 10:30 AM

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Aldar awards $810m contracts for new Abu Dhabi projects

CEO Talal Al Dhiyebi says projects will benefit the Abu Dhabi economy by driving capital into the construction sector

Aldar awards $810m contracts for new Abu Dhabi projects
Aldar CEO Talal Al Dhiyebi.

The CEO of Aldar Properties has announced further details of the commercial and socio-economic impact that a raft of recently announced projects worth AED5 billion will have on Abu Dhabi.

Following its appointment by the Government of Abu Dhabi to deliver the projects, Talal Al Dhiyebi said they will benefit the Abu Dhabi economy by driving significant flow of capital into the construction sector and across its local supply chain.

Fourteen contracts, totalling AED3 billion ($810 million), have already been awarded by Aldar to design consultants, supervision and contractors. Works on the three projects are starting immediately, he added.

The projects include an AED2 billion project to develop the expansion of Al Falah housing community on behalf of the Government, adding 899 new villas and a mosque that can accommodate 2,000 worshippers.

Twofour54’s new campus will be home to a workforce of 10,000 industry professionals on Yas Island and is scheduled to be completed in 2021 while Aldar will also deliver AED2 billion worth of infrastructure works on Saadiyat Island.

Al Dhiyebi said in a statement that the long-term commercial value of the projects solidifies the franchise value of Aldar’s development management business unit and the profit contributions from the Al Falah expansion, twofour54 campus as well as infrastructure management fees on Saadiyat Island.

He added that with the addition these awards, Aldar is increasing its gross profit guidance for third-party development management business to AED150 million per year over the next 3-4 years, marking a 50 percent increase. 

“The importance of these projects lies in the commercial and socio-economic value they will create for both Abu Dhabi and Aldar. Not only will they create a supply of flagship residential and commercial developments in Abu Dhabi, they are also set to create robust revenue streams for the construction sector and the broad supply chain it entails," the CEO noted.

"We look forward to putting our expertise and experience in what will further the attractiveness of both Yas Island and Saadiyat Island as world-class destinations, and Al Falah as one of the most sought-after housing communities in Abu Dhabi."

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