Aldar unveils $11bn Fahid Island project in Abu Dhabi

Aldar Properties, Abu Dhabi’s biggest listed developer, has unveiled the master plan for Fahid Island, with a gross development value of more than Dh40 billion ($10.9 billion) amid a boom in the UAE’s property market.

More than 6,000 luxury residences are planned for the 2.7 million square metre island, ranging from apartments and townhouses to ultra-luxury villas, Aldar said in a statement on Monday.

The project will also include two hotels and with one of them set to be announced shortly, Jonathan Emery, chief executive of Aldar Development told The National on the sidelines of the project launch.

“We would expect interest in the project from all over the world. We also have local customers, loyally, from the start for our projects,” Mr Emery said.

The new project, with an 11km coastline, will be built in the UAE’s capital between Yas Island and Saadiyat Island.

Aldar acquired Al Fahid Island, a 3.4 million square metre land bank, for Dh2.5 billion in January 2023, with the developer stating at that time that the property's gross development value was Dh26 billion. The acquisition consideration would be paid over five years, Aldar said.

The first residential development on Fahid Island – Fahid Beach Residences – will have seven buildings, each featuring 65 residences.

The core infrastructure including schools and bridges will be ready for people to move in the first quarter of 2029 in the first residential development.

Sales are expected to begin shortly after Eid holidays with starting prices at Dh3.5 million ($953,029) for a one-bedroom unit, Mr Emery said.

“This project is already fully funded through our corporate, bonds and sukuk that we have and also obviously through the sales that are generated.”

Fahid Island builds “on the success of Saadiyat and Yas Islands to offer a new benchmark in premium waterfront living, wellness, and sustainable design”, said Mohamed Al Mubarak, chairman of Aldar.

Residential property sale prices in Abu Dhabi rose by 11 per cent annually last year amid rising demand and a supply shortage in the emirate, according to real estate company Cushman & Wakefield Core.

The Abu Dhabi Real Estate Centre reported that total transaction values in the emirate increased by 34.5 per cent to Dh25.3 billion from 6,896 deals in the first quarter of 2025, compared with Dh18.8 billion from 5,773 transactions in the same period last year.

The UAE’s property market continues to perform strongly due to government initiatives such as residency permits for retired people and remote workers, the expansion of the 10-year golden visa programme as well as overall growth in the UAE’s economy.

An influx of wealthy people is also supporting the property market. Last year, 7,200 millionaires arrived in the UAE, building on the 4,700 who arrived in 2023 and 5,200 in 2022, property consultancy Knight Frank said in a report.

The number of dollar millionaires in the UAE was 130,500 at the end of December, making the Emirates the world's 14th-largest wealth market.

Thirty per cent of space of Fahid Island will be dedicated to natural spaces, with a 10km landscaped berm park also planned. It will be the island’s wellness and fitness corridor with running tracks and three cycling routes that connect to Abu Dhabi’s cycle loop, according to Aldar.

The island’s waterfront promenade will have a mix of retail, dining, and art experiences, while Coral Drive, the island’s boutique retail boulevard, will have outlets, concept stores, art galleries, ballet school and cafes and public artworks.

The island will also have an international school.

Disney theme park impact

This follows an announcement by Miral that a Disney theme park will be built on Yas Island, which is expected to increase Abu Dhabi's tourism potential and property demand in the island.

The Disney announcement has “really accelerated sales in Abu Dhabi in a really positive way”, Mr Emery said.

Last week, Aldar said it sold all 133 homes at Waldorf Astoria Residences Yas on the launch day, with the company earning Dh850 million from sales.

Property market outlook

The UAE's property market continues to remain strong and “global volatility continues to reinforce the attractiveness of the UAE”, Mr Emery said.

“It's all still green, we're not seeing any slowdown at all. We are cautious but optimistic.”

Ratings agency Fitch in a report last week predicted Dubai property prices to fall by 15 per cent this year on oversupply in the market. It expects unit deliveries in 2025 and 2026 to double compared to 2022 to 2024, “which could cause a price correction”.

“Things can move quite quickly but we're still very positive about the UAE,” Mr Emery said.

The company aims to launch 12 more projects in the Emirates for the whole year, including one project every month.

“We respond as dynamically as we possibly can in terms of choosing where and when and which project, so that can change.”

It is also looking at launching affordable projects in Abu Dhabi and Dubai by the end of the year.

“There is a high demand for more affordable products and we will be addressing that very shortly this year.”

The Abu Dhabi listed company is forecasting development sales of between Dh36 billion and Dh39 billion for 2025, compared to Dh33.6 billion it achieved last year.

Aldar expects to reach its sales targets for the year, Mr Emery said.

“We've given an outlook for the year, and we remain as we predicted.”