Abu Dhabi’s biggest property developer plans to ramp up work on a beachfront community, where it aims to build luxury homes for high net worth individuals in a city’s that’s emerged as one of the world’s newest wealth havens. 

Aldar Properties expects to kick off sales of about 7,000 luxury homes on Al Fahid Island in the second half of the year. The development will include schools, hotels, retail and entertainment facilities, and will cost about 25 billion dirhams (S$9.26 billion), Aldar chief financial and sustainability officer Faisal Falaknaz said.

“We continue to see positive sentiment in the UAE real estate market and are confident in our ability to sustain the current development performance levels,” Falaknaz said. Aldar, which aims to build the project within 5 to 7 years, had acquired 3.4 million square metres of land on the island for 2.5 billion dirhams last year. 

Abu Dhabi is emerging as the new wealth haven in the region with some of the richest people setting up firms there. From the richest man in crypto Changpeng “CZ” Zhao to hedge fund billionaire Ray Dalio, scores have moved into the city adding to demand for luxury homes. 

The city has also benefited from a rebound in Dubai, where an influx of newcomers, from crypto millionaires and bankers relocating from Asia, to wealthy Russians seeking to shield assets, helped boost values. 

The government has relaxed visa laws and introduced visas for job seekers and freelancers, helping the emirate break a decade-long record for total home sales. Aldar has already benefitted from the surge there – a joint venture with Dubai Holding sold out within hours –  and will start selling homes in its second development next month. 

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Buyers in the UAE account for 75 per cent of Aldar’s sales, Falaknaz said. Strength in its main markets helped push profit and sales for the first quarter up more than 80 per cent from last year, it said on Monday (Apr 29). Its shares closed up 4 per cent.

Aldar has expanded its operations globally since the pandemic with projects in Egypt and the UK. It plans to accelerate development activity in those countries, as well as in Abu Dhabi, Dubai and Ras Al Khaimah in the UAE.

Late last year, Mubadala Investment and Ares Management said they will partner with Aldar on a US$1 billion private credit fund to invest in real estate across the UK and Europe. BLOOMBERG