ADQ, Aldar sign MOU to develop government capital projects

Aldar to take over govt capital projects worth AED30 bn

BBN Report

ABU DHABI/October 25-2020: As part of the Abu Dhabi Government’s efforts to support the emirate’s real estate sector and public-private partnership (PPP) initiatives, the Abu Dhabi Executive Committee has directed the development of a public private partnership framework to implement capital projects in the emirate.

In this context, ADQ and Aldar signed a memorandum of understanding (MoU) under which, Aldar will take over the development and management of government capital projects with a total value of approximately AED30 billion.

The largest among the government capital projects is the Riyadh City project and the Baniyas North project as well as other projects in Al Ain and Al Dhafra regions, which will together include more than 25,000 land and villas for UAE Nationals and associated infrastructure.

Established in Abu Dhabi in 2018, ADQ is one of the region’s largest holding companies with direct and indirect investments in more than 90 companies.

Musanada’s projects

Aldar will also have management oversight of Musanada’s projects to ensure consistency of existing government capital infrastructure projects.

Musanada currently has a large pipeline of active projects ranging from education, healthcare, infrastructure, social services, and facilities management.

Aldar expects to complete taking 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 seamlessly.

Mohamed Hassan Al Suwaidi (seen in the picture), Chief Executive Officer (CEO), ADQ said that Aldar’s real estate sector leadership and 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 towards the delivery of major infrastructure and national housing schemes across the emirate. Importantly, it aligns commercial and strategic operations in the sector,” Al Suwaidi added.

Talal Al Dhiyebi, Chief Executive Officer (CEO), Aldar Properties, said the transaction, which is fully aligned with the company’s business development strategy, will significantly support future profit growth.

In-Country Value programme

Aldar’s ‘In-Country Value’ programme (ICV) will ensure that the majority of contracts are prioritised towards local contractors, consultants, suppliers – including SMEs – to ensure as much as possible is reinvested into the local economy.

At the same time Aldar will ensure the development of these projects is aligned to the company’s sustainability objectives, especially with regards to environmental standards, materials procurement and workers’ welfare.

 

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