Two undeveloped tropical islands on the edge of oil city Abu Dhabi are set to be transformed into luxury “wellness-focussed” residential and holiday accommodation areas, as part of plans to make it a “global business and lifestyle destination.”
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi announced the £2.7bn project to develop the two small islands, off Saadiyat Island and Yas Island, as part of a wider £6.23bn project.
A 3.7 million square metre island between Yas Island and Al Raha, outside the capital of the United Arab Emirates, is to be developed as a premium waterfront villa community.
Another island, between Saadiyat Marina and Reem Island, which has a 1.8-mile waterfront, will also be acquired to be developed into waterfront villa projects.
It is said this island will complement the existing Saadiyat Cultural District.
No further details of the projects were given, other than it is a joint venture between Aldar Properties, Abu Dhabi’s top developer, and Mubadala Investment Company, a sovereign firm owned by the Government of Abu Dhabi.
The two islands will be acquired from Mubadala by Aldar, a statement from the Crown Prince, who is also Chairman of Abu Dhabi Executive Council, said.
The statement said: “Aldar and Mubadala extend their long-standing strategic partnership with the establishment of a series of joint ventures to own and manage assets across Abu Dhabi valued at more than AED 30 billion.
“The partnership aims to unlock greater value for both parties and drive further transformation and growth of Abu Dhabi as a global business and lifestyle destination.
“Leveraging Mubadala’s portfolio of prime land across Abu Dhabi, the companies aim to masterplan and develop wellness-focused luxury waterfront communities through a joint venture for two undeveloped islands that sit off the coasts of Saadiyat Island and Yas Island. The combined gross development value of the projects stands at AED 13 billion.
“The first island sits between Saadiyat Marina and Reem Island along 3km of waterfront. The site, which will be acquired from Mubadala by the joint venture, complements Aldar’s luxury living offering in Saadiyat Cultural District.
“The joint venture will also acquire a 3.7 million square metre island that sits between Yas Island and Al Raha from Mubadala and will be developed as a premium waterfront villa community.”
The wider project involves also creating a “world-class retail platform to consolidate the emirate’s premium shopping destinations”.
Mubadala and Aldar will create a (£1.87bn) retail platform that will own Abu Dhabi’s existing retail assets including Yas Mall and The Galleria Luxury Collection.
There will also be the creation of a logistics park, with a gross floor area of 1.2 million square metres, in Al Falah, close to Zayed International Airport.
Bakheet Al Katheeri, chief executive of Mubadala’s UAE investments platform, said: “This strategic partnership aims to optimise asset utilisation, drive long-term returns, and continue to position Abu Dhabi as the global premier business and lifestyle destination.”
The deal is expected to be completed in the coming months, subject to final due diligence, according to the companies.