Aldar Awards Development Contracts Worth AED 66 Billion, Injects AED 30 Billion into Local Economy

Abu Dhabi | EcoPulse24

Aldar Group announced the awarding of development contracts with a total value of AED 66 billion for 2025, covering residential, commercial, infrastructure, and logistics assets across various Emirates. This move reflects the accelerating pace of real estate development and expanding investment tied to urban growth in the UAE.

According to the statement, about 45% of the contract value, equivalent to AED 30 billion, will be reinvested into the local economy through the National In-Country Value Program, supporting local supply chains, strengthening the industrial base, and creating jobs across construction and related sectors.

The contracts include the development of large-scale residential communities, strategic infrastructure, as well as premium commercial and logistics assets in key growth areas, meeting rising demand for housing, commercial, and logistics services, and supporting sustainable urban development pathways.

In Abu Dhabi, projects include Saadiyat and Fahid Islands and new residential areas, alongside local government projects. In Dubai, Aldar continues major residential and logistics projects, including villa complexes and industrial assets. In Ras Al Khaimah, Al Marjan Island saw new contracts as Aldar expands in the northern emirate.

The group reaffirmed its commitment to integrating sustainability standards and National In-Country Value requirements in all procurement and execution, mandating certified contractors and adherence to recognized environmental performance standards.

Since the launch of the National In-Country Value Program in 2020, Aldar has reinvested AED 76 billion into the national economy, with its annual contribution rising to AED 30 billion in 2025, compared to about AED 250 million in the program's first year.

EcoPulse24 Analysis

Aldar’s AED 66 billion contracts mark a shift in the UAE’s real estate sector from recovery to organized expansion, driven by long-term capital expenditure and clear alignment with national industrial and economic policies. The AED 30 billion local reinvestment highlights that real estate growth is now a direct tool for stimulating local value chains and domestic spending.

Diversifying projects across residential, commercial, and logistics segments reduces traditional real estate cycle risks and reflects a nuanced understanding of shifting demand, especially with the growth of trade and logistics services. The focus on sustainability and linking it to incentives further strengthens Aldar's ability to manage future costs and comply with climate neutrality requirements, enhancing asset appeal for long-term investors.

Overall, these contracts position Aldar as a key driver of urban and industrial development, not merely a traditional real estate developer, with positive expected impacts on the labor market, supply chains, and non-oil sector growth in the coming years.