UAE-based master developer Arada is targeting an 800-bed healthcare network with investments totalling 2 billion UAE dirhams ($544.5 million) as part of a broader revenue diversification strategy, Group CEO Ahmed Alkhoshaibi said.

The expansion follows the developer’s recent acquisition of a controlling stake in Reem Hospital in Abu Dhabi.

Alkhoshaibi said the total investment will cover the original cost of acquiring Reem Hospital as well as funding the roll-out of three additional hospitals across the UAE, which will be delivered on a built-to-lease basis with operating partners over the medium-term.

“Our goal is to support Reem Hospital’s long-term growth plan, enabling the company to expand from its current single location into three other locations across the UAE,” he said.

Expansion roadmap

Under the plan, Reem Hospital will double its bed capacity at its existing site on Abu Dhabi's Reem Island to 200 beds in the short term. The subsequent phase will involve establishing three new locations across the country.

“The first of these is in Arada’s Aljada community in Sharjah, one of the largest mixed-use destinations in the UAE, while two further locations will be based in Dubai and Abu Dhabi,” said Alkhoshaibi.

In April 2026, state news agency WAM had reported that over 8,800 homes have now been completed at the AED 35 billion ($9.5 billion) Aljada megaproject.

When all the hospitals are open, they will have the capacity to treat up to four million people a year.

The Arada CEO said the Reem acquisition supports the developer’s wider placemaking strategy and ability to create world-class amenities within its own communities.

"It is also part of our long-term plan to diversify our revenue streams away from residential development, which tends to be cyclical in nature," he noted.

Diversification strategy

Alkhoshaibi highlighted that the developer has significantly ramped up its exposure across non-residential verticals over the past year.

In the wellness and leisure space, Arada launched two wellness-centric residential and hospitality brands, Akala and Inaura, over the past 12 months. The developer also operates Formative, currently the UAE's largest gym operator by revenue, which is on track to reach 100,000 members across 40 locations by the end of 2027.

“The acquisition of Reem Hospital enables us to become the first regional master developer to offer a fully integrated health and wellness portfolio,” explained Alkhoshaibi.

Complementing its lifestyle segments, the group has entered partnerships in the food and beverage sector.

“We also invested heavily into partnerships in the food and beverage sector, introducing new brands such as The Reformatory Lab and Kashtat Amina, as well as partnering with Tashas Group and Australia’s Brooki Bakehouse,” the Arada CEO added

The company's asset management arm is also overseeing sizeable commercial developments, backed by major construction contracts valued at nearly AED 3 billion ($817 million) awarded last year. These include Madar Mall and the initial phase of the Arada Central Business District within the Aljada community.

In the industrial sector, Arada strengthened its presence through the strategic purchases of Italy’s Raimondi Cranes, three crane divisions from US-listed Terex Corporation, and Tier 1 Australian contractor Roberts Co.

The developer has also expanded its revenue footprint internationally, targeting projects in the UK and Australia.

(Reporting by Brinda Darasha; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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