Aldar Expands into Sharjah with Dh1.1 Billion Residential Acquisition, Bolstering Rental Portfolio

Aldar, Abu Dhabi's leading listed developer, has finalized an agreement to acquire over 1,100 homes in Sharjah from Arada for Dh1.1 billion ($290 million). This marks Aldar's inaugural real estate investment in Sharjah, a strategic move to grow its income-generating property portfolio. The forward-purchase agreement encompasses nine buildings across three residential blocks within Aljada, Arada's prominent mixed-use development. Deliveries are slated for the fourth quarter of 2029, as announced by Aldar on Thursday.

This transaction is set to increase Aldar's develop-to-hold pipeline to Dh21 billion. The acquired nine buildings are intended primarily for end-users and long-term renters seeking high-quality housing at accessible price points within a well-established, integrated community. This acquisition represents Aldar's first real estate venture in the emirate and significantly expands its develop-to-hold pipeline to Dh21 billion.

"Sharjah presents a substantial and expanding residential market, and Aljada offers an attractive entry point through one of the emirate's premier master-planned communities," stated Aldar group chief executive Talal Al Dhiyebi. He further noted that this investment enhances the scale of Aldar's residential-for-rent portfolio.

The acquisition builds upon a Dh15 billion development partnership previously announced by Aldar and Arada, which includes projects in Abu Dhabi and signifies a deepening of their collaboration. This partnership, which also marked Arada's entry into Abu Dhabi, involves a mixed-use community at Seih Sdeirah, situated on the Abu Dhabi-Dubai border, and three residential plots on Yas Island.

Arada, a joint venture between KBW Investments—controlled by Saudi Arabia's Prince Khaled bin Alwaleed—and the Sharjah-based Basma Group, has been actively expanding its presence across the UAE and in international markets such as the UK, Australia, and Syria. Concurrently, Aldar is planning to launch a significant development of villas and townhouses in Dubai by the end of this year, as part of its broader expansion strategy across the UAE. This new project, with an undisclosed value, will be located near Dubai Silicon Oasis, as confirmed by Aldar Development's chief executive Jonathan Emery in a recent interview.

This strategic move occurs amidst a period of robust performance in the UAE property market, even with global uncertainties. The UAE was recognized as a leading global real estate investment destination in a June report. Arada's UAE Property Investment Index indicated significant interest from 56 percent of global investors in the UAE's property market.

The latest acquisition will diversify Aldar's geographic footprint and add residential rental assets targeted at end-users and long-term tenants seeking affordable housing options. Aljada, the development where the acquisition took place, spans 2.2 million square meters and is projected to house approximately 25,000 homes upon full completion.

Arada group chief executive Ahmed Alkhoshaibi commented that Aldar's decision to invest in Sharjah at Aljada underscores confidence in both the development and the emirate's residential market. "To have a developer of Aldar’s caliber and track record choose Aljada as its first investment in the emirate reflects the quality of what we have built here, and the scale of the opportunity that Sharjah represents," he said.

Aljada is expected to comprise around 25,000 homes at full buildout, with an anticipated gross sales value of Dh35 billion. Residential handovers at Aljada commenced in 2021, with over 8,800 homes already delivered across various districts. The community features schools, hotels, student accommodation, retail spaces, and the Madar family entertainment district. Arada has also announced plans for a mall within Aljada, featuring a water feature and observation tower, with construction expected to begin in 2024.

Aldar's acquisition aligns with its strategy to expand its portfolio of income-generating properties and diversify revenue streams. The Abu Dhabi developer, which reported strong second-quarter financial results, anticipates handing over more than 3,000 units this year, the highest volume since its inception, with deliveries expected to reach 4,500 next year.