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07 October, 2018

Arada could make move on Dubai market next year

Master developer of the $6.5 billion Aljada project in Sharjah is also eyeing opportunities Saudi Arabia, UK and Australia

Image used for illustrative purpose. Dubai Marina Skyline Sunlight

Image used for illustrative purpose. Dubai Marina Skyline Sunlight

Getty Images

07 October 2018
United Arab Emirates-based property developer Arada is poised to make its first foray outside the emirate of Sharjah next year, its chairman has said.

The developer of the 24 billion UAE dirhams ($6.54 billion) Aljada scheme, Sharjah's biggest real estate project, is in the process of "getting a project" in neighbouring Dubai, Sheikh Sultan bin Ahmed Al Qasimi told Thomson Reuters Projects.

"The deal isn't finalised yet, but definitely in the first quarter of 2019, it would be ready and we will be announcing the deal," he said during an interview at the Cityscape Global event in Dubai last week.

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The company's other real estate project in Sharjah, the Nasma Residences villa community, is scheduled for completion in 2019.

"We are building our name in Sharjah, and from here, we are expanding. We have people's trust in us and we are building on that," said Sheikh Sultan, without giving further details about the Dubai project.

Arada vice-chairman Prince Khaled bin Alwaleed bin Talal said the focus would be on Dubai in the short term, Saudi Arabia in the medium term, and international markets, like the United Kingdom and Australia, in the long term.

"We think it is prime time to go to Saud Arabia in the next two-to-three years. Land prices and rents have been going down for many reasons but mainly because of changing laws that prefer Saudis buying and investing in the real estate market," he said.

In April 2018, Abu Dhabi-based English language newspaper The National reported that Arada's first Dubai project could be an upscale residential tower in Dubai Marina or Business Bay.

Prince Khaled said the commercial component of the Aljada megaproject, in the form of a 500,000 square metre business park, is likely to be launched next year.

He said: "We are comfortable with believing that companies from neighbouring emirates will move to Sharjah and occupy the business park because of the ecosystem and the prices we are going to offer. The overall project is going to be attractive for businesses."

Last week, at Cityscape Global, the developer revealed the final masterplan of the Central Hub, a leisure and entertainment destination within Aljada. The project's first phase is scheduled for completion by the end of first quarter 2019.

Arada was founded in December 2016 as a real estate joint venture between Sheikh Sultan, chairman of Sharjah-headquartered Basma Group, and Prince Khaled, chairman of Dubai-based KBW Investments, according to company statements.

(Reporting by Anoop Menon; Editing by Michael Fahy)

(anoop.menon@refinitiv.com)

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