Arada Capital and Alya sign MoU for AED6bn residential development pipeline
Arada Capital and Alya have signed a memorandum of understanding (MoU) to establish a strategic development and co-investment partnership targeting premium residential and mixed-use projects in the UAE and Saudi Arabia.
The proposed collaboration will initially explore two residential developments with a combined gross development value (GDV) of approximately AED6 billion. Potential projects include locations in Downtown Dubai and Yas Island in Abu Dhabi, subject to due diligence, commercial agreements and necessary approvals.
The initial opportunities form part of a wider pipeline that the two parties plan to evaluate as the partnership develops.
The agreement brings together Arada Capital's access to Arada Group's development pipeline and experience in delivering large-scale communities with Alya's development and value creation expertise. Alya also brings an institutional approach to governance, capital discipline and project delivery, backed by Brookfield and Abu Dhabi-based global investment firm Lunate, which has more than $125 billion in assets under management.
Focus on premium residential developments
Otto Dreyer, Chief Executive Officer of Alya, said the partnership would combine the companies' strengths to create residential projects focused on long-term value.
He said Alya's approach prioritises quality at every stage, from initial planning and design to execution, handover and customer experience.
The collaboration aims to combine this approach with Arada's experience in developing residential communities, creating homes intended to deliver lasting value for residents and investors.
Moustafa Fahour, Chief Executive Officer and Managing Director of Arada Capital, described the agreement as an important milestone in the company's ambitions as a fund manager.
He said the partnership would bring together Arada Group's development capabilities and access to projects with Alya's institutional expertise and financial backing from Brookfield and Lunate.
Fahour added that the UAE and Saudi Arabia offer long-term opportunities for premium residential development, with the partnership focused on combining capital and expertise to create value for investors and communities.
The two companies said their approach would place emphasis on understanding each project's location, surrounding community and future residents, supported by disciplined decision-making and institutional oversight.
