Aldar and the Department of Municipalities and Transport (DMT) have formalized a major public-private partnership to deliver integrated communities spanning more than 20 million square meters across five strategic locations in Abu Dhabi, marking one of the emirate’s most ambitious urban development initiatives.
The agreement was signed on May 12, 2026, during the Abu Dhabi Infrastructure Summit (ADIS) 2026, with His Excellency Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, His Excellency Mohammed Ali Al Shorafa, Chairman of DMT, and His Excellency Mohamed Khalifa Al Mubarak, Chairman of Aldar, in attendance.
His Excellency Abdulla Mohamed Al Blooshi, Director General of the Urban Planning and Permits Centre at DMT, and Talal Al Dhiyebi, Group Chief Executive Officer of Aldar, executed the partnership documents.
Strategic Locations and Community Design
The new communities will be developed at Muwaylih, Mussafah, Al Zahiya, and Al Faya, combining residential, retail, educational, and lifestyle offerings within walkable neighborhoods featuring green public spaces and connectivity to Abu Dhabi’s transport networks.
The collaboration directly supports the emirate’s urban development and housing priorities, including the expansion of the Value Housing Program, a DMT-led initiative increasing access to high-quality, affordable rental housing in Abu Dhabi.
“This strategic partnership marks an important step in shaping Abu Dhabi’s next phase of urban growth. As the emirate continues to attract residents, businesses and investment, there is a growing need for thoughtfully planned destinations that expand housing choice across multiple market segments while enhancing quality of life,” said Talal Al Dhiyebi, Group Chief Executive Officer of Aldar.
Al Dhiyebi emphasized that the scale and breadth of these projects reflect Aldar’s strong conviction in the long-term fundamentals of Abu Dhabi’s real estate market and continued confidence in the emirate’s economic growth trajectory.
Value Housing Program Expansion
The partnership marks a significant expansion of the Value Housing Program, building on a recently announced commitment to develop two integrated communities in Mohamed Bin Zayed City and Baniyas that will deliver 9,000 residential units to Abu Dhabi’s rental market.
These communities are designed to offer walkable neighborhoods, green public spaces, schools, retail and gathering places, connected to the wider city and built around the lifestyle needs of residents. Strategically located along major road networks, each destination will offer seamless connectivity across Abu Dhabi while fostering a strong sense of place and belonging.
“This partnership with Aldar represents a new model for Abu Dhabi’s urban development, one that brings together strategic master planning, private-sector execution capability and government oversight to deliver transformational growth,” said His Excellency Abdulla Mohamed Al Blooshi, Director General of the Urban Planning and Permits Centre at DMT.
Al Mihsinah Island Activation
In a landmark announcement, Aldar and DMT revealed plans to activate Al Mihsinah Island for the first time, creating a waterfront community that combines natural coastal surroundings with thoughtfully planned residential neighborhoods and lifestyle amenities.
The development will offer a living experience that blends wellness, tranquility and connectivity within a waterfront setting, representing a new benchmark for coastal community development in the capital.
New Model for Urban Development
The agreement represents a new model for urban development in the emirate, aligning housing accessibility, community building and long-term economic growth within a single, coordinated framework. DMT contributes land while Aldar serves as master developer, combining public-sector land stewardship with private-sector development expertise.
The partnership is a direct expression of Abu Dhabi’s urban development strategy, placing integrated community planning, housing accessibility and long-term liveability at its core. Aldar will draw on its extensive expertise in delivering iconic destinations such as Saadiyat Island, Yas Island and Al Raha Beach.
The announcement comes as Abu Dhabi’s residential market continues to demonstrate strong momentum, with transaction volumes remaining elevated and investor confidence sustained by the emirate’s robust economic fundamentals and strategic infrastructure investments.