Aldar Investment has more than Dh22 billion of assets under management. Delores Johnson / The National
Aldar Investment has more than Dh22 billion of assets under management. Delores Johnson / The National
Aldar Investment has more than Dh22 billion of assets under management. Delores Johnson / The National
Aldar Investment has more than Dh22 billion of assets under management. Delores Johnson / The National

Aldar sets up logistics unit after acquiring stake in Abu Dhabi Business Hub


Fareed Rahman
  • English
  • Arabic

Aldar Properties, the biggest developer in Abu Dhabi by market value, has set up a logistics business line after acquiring a 70 per cent stake in Abu Dhabi Business Hub, which owns a warehousing, industrial and office complex in the emirate.

The acquisition was completed by its subsidiary Aldar Investment and values Abu Dhabi Business Hub at more than Dh500 million ($136m), Aldar said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded. It did not disclose the total value of the deal.

Aldar Logistics, the company’s new unit, will focus primarily on the UAE, with the potential to expand into Saudi Arabia and Egypt.

“We see strong potential for expansion in warehousing and logistics real estate in the region, a segment which has robust fundamentals driven by infrastructure development and growth of the digital economy,” said Jassem Busaibe, chief executive of Aldar Investment.

“The addition of logistics assets is immediately yield-accretive to our diversified real estate portfolio and further enhances its risk profile.”

The new transaction comes as demand for warehousing units continues to increase due to the e-commerce boom that was fuelled by the pandemic.

The UAE's e-commerce market is forecast to increase by 60 per cent from 2021 to more than $8 billion in 2025, according to a report by EZDubai, an e-commerce zone in Dubai South, and Euromonitor International.

The country is also ranked among the top three logistics centres in emerging markets, after China and India, in the latest Agility Emerging Markets Logistics Index, that rates countries for overall competitiveness based on their logistics strengths, business climates and digital readiness.

The UAE, the Arab world’s second-largest economy, is investing heavily in developing infrastructure and building the transport network to drive the growth of the logistics sector.

New projects include Dh50bn of investment in a railway network for transporting goods and passengers across the UAE, which builds on the first phase of Etihad Rail. Abu Dhabi is also investing significantly in ports and integrated industrial zones, including Kizad and the Industrial City of Abu Dhabi (Icad).

A ship is offloaded at Khalifa Port in Kizad, Abu Dhabi. The UAE is investing heavily in developing infrastructure to drive the growth of the logistics sector. Photo: Abu Dhabi Ports
A ship is offloaded at Khalifa Port in Kizad, Abu Dhabi. The UAE is investing heavily in developing infrastructure to drive the growth of the logistics sector. Photo: Abu Dhabi Ports

Abu Dhabi Business Hub's complex in Icad has a total net lettable area of 166,000 square metres and comprises three office buildings, 132,000 square metres of warehouses and undeveloped industrial land plots for future expansion.

The existing logistics units owned by Abu Dhabi Business Hub are over 90 per cent occupied, with long-term anchor tenants including supermarket and online grocery company Spinneys, industrial zone operator ZonesCorp and Abu Dhabi’s media free zone operator, Twofour54, according to Aldar.

“Following the completion of the Abu Dhabi Business Hub transaction, Aldar Investment intends to assess further acquisition opportunities through the newly set up logistics vertical as it seeks to increase its allocation across the sector,” the developer said.

Aldar is continuing to boost its portfolio through new acquisitions. It bought two properties in Ras Al Khaimah this year — Rixos Bab Al Bahr hotel for Dh770m and Al Hamra Mall for $111.6m.

The Abu Dhabi-based company is also increasing investments outside the country. Last year, a consortium of Aldar and one of the region’s biggest holding companies, ADQ, acquired a majority stake in Egypt’s Sixth of October for Development and Investment Company for 6.1bn Egyptian pounds ($386.8m).

Aldar adopted a new group operating model and organised its business into two segments. Aldar Investment is responsible for managing its Dh22bn portfolio of recurring income assets, including its hospitality portfolio, while Aldar Development is responsible for building the company's 75 million-square metre land bank.

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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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More than 2.2 million Indian tourists arrived in UAE in 2023
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Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
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Transmission: Single-speed automatic

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Engine: 4.0-litre flat-six
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Reputation

Taylor Swift

(Big Machine Records)

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%3Cp%3EVara%20will%20cater%20to%20three%20categories%20of%20companies%20in%20Dubai%20(except%20the%20DIFC)%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20A%3A%3C%2Fstrong%3E%20Minimum%20viable%20product%20(MVP)%20applicants%20that%20are%20currently%20in%20the%20process%20of%20securing%20an%20MVP%20licence%3A%20This%20is%20a%20three-stage%20process%20starting%20with%20%5B1%5D%20a%20provisional%20permit%2C%20graduating%20to%20%5B2%5D%20preparatory%20licence%20and%20concluding%20with%20%5B3%5D%20operational%20licence.%20Applicants%20that%20are%20already%20in%20the%20MVP%20process%20will%20be%20advised%20by%20Vara%20to%20either%20continue%20within%20the%20MVP%20framework%20or%20be%20transitioned%20to%20the%20full%20market%20product%20licensing%20process.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20B%3A%3C%2Fstrong%3E%20Existing%20legacy%20virtual%20asset%20service%20providers%20prior%20to%20February%207%2C%202023%2C%20which%20are%20required%20to%20come%20under%20Vara%20supervision.%20All%20operating%20service%20proviers%20in%20Dubai%20(excluding%20the%20DIFC)%20fall%20under%20Vara%E2%80%99s%20supervision.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20C%3A%3C%2Fstrong%3E%20New%20applicants%20seeking%20a%20Vara%20licence%20or%20existing%20applicants%20adding%20new%20activities.%20All%20applicants%20that%20do%20not%20fall%20under%20Category%20A%20or%20B%20can%20begin%20the%20application%20process%20through%20their%20current%20or%20prospective%20commercial%20licensor%20%E2%80%94%20the%20DET%20or%20Free%20Zone%20Authority%20%E2%80%94%20or%20directly%20through%20Vara%20in%20the%20instance%20that%20they%20have%20yet%20to%20determine%20the%20commercial%20operating%20zone%20in%20Dubai.%C2%A0%3C%2Fp%3E%0A
The biog

Name: Younis Al Balooshi

Nationality: Emirati

Education: Doctorate degree in forensic medicine at the University of Bonn

Hobbies: Drawing and reading books about graphic design

ESSENTIALS

The flights 
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Where to stay 
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UAE currency: the story behind the money in your pockets
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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

'The Lost Daughter'

Director: Maggie Gyllenhaal

Starring: Olivia Colman, Jessie Buckley, Dakota Johnson

Rating: 4/5

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
While you're here

Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes

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India cancels school-leaving examinations
Wonka
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  • Debate the issue, don't attack the person
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UAE currency: the story behind the money in your pockets
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Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
TOURNAMENT INFO

Women’s World Twenty20 Qualifier

Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November

UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi

EXPATS
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ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

Updated: May 12, 2023, 4:49 PM`