Arada Capital and Alya Target $1.6 Billion UAE Projects

Arada Capital and Alya sign an MoU to explore premium residential and mixed-use developments across the UAE and Saudi Arabia, with two initial projects carrying an estimated combined value of AED6 billion.

Arada Capital and Alya have entered into a strategic co-investment partnership to explore premium residential and mixed-use development opportunities across the United Arab Emirates (UAE) and Saudi Arabia. The proposed collaboration targets an initial project pipeline with an estimated gross development value (GDV) of AED6 billion, equivalent to approximately $1.6 billion.

The partnership is formalised through a Memorandum of Understanding (MoU) and initially focuses on two residential developments in the UAE. The companies are evaluating potential opportunities in Downtown Dubai and Yas Island in Abu Dhabi. These projects remain subject to due diligence, commercial agreements and the necessary regulatory approvals. The proposed developments also form part of a broader pipeline that the partners intend to assess across the region.

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The collaboration combines Arada Capital’s access to the established development pipeline of Arada Group with Alya’s expertise in residential development and value creation. It also brings together institutional governance, capital discipline and project delivery capabilities to support the development of premium residential communities.

Alya is a residential development platform for the Gulf Cooperation Council (GCC) region and is backed by global investment firms Brookfield and Lunate. Lunate, headquartered in Abu Dhabi, manages more than $125 billion in assets. The partnership aims to apply an institutional investment approach while maintaining a focus on design, execution, quality and long-term value.

Otto Dreyer, Chief Executive Officer of Alya, highlights the importance of strong partnerships, shared objectives and long-term value creation in successful property development. He notes that the collaboration combines Alya’s development expertise and institutional governance with Arada’s experience in creating residential communities. The shared objective is to deliver homes that offer lasting value to residents and investors.

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Moustafa Fahour, Chief Executive Officer and Managing Director of Arada Capital, describes the agreement as an important milestone in the company’s development as a fund manager. He emphasises the potential to bring forward premium residential projects through the combination of Arada Group’s development capabilities and Alya’s institutional expertise.

The partnership reflects both companies’ interest in the long-term opportunities emerging in the UAE and Saudi Arabia. By combining capital, development experience and institutional oversight, the collaboration seeks to support residential projects that respond to local communities and evolving housing demand. The MoU marks an initial step towards a broader, long-term relationship between the two organisations.