meed-logo

line1 line2 line3
SIGN IN / REGISTER

Abu Dhabi real estate pivots to green

29 November 2022

This article is the second in a series that captures key highlights from the Abu Dhabi Real Estate Roundtable jointly held by MEED and Mashreq on 28 September, discussing the trends shaping the way forward for the emirate’s real estate sector. Participants at the closed-door event included government, business and financial stakeholders.

Tapping into investor demand for sustainable property development could help Abu Dhabi propel its real estate sector to new heights, according to leading industry experts gathered at the Abu Dhabi Real Estate Roundtable.

“Globally, there is a growing call for ESG adoption and sustainable development,” said Anthony Taylor, senior executive officer at Masdar Green REIT, speaking during the high-level discussion organised by MEED and Mashreq on 28 September. 

“Investors are increasingly looking for ‘responsible’ investment opportunities and evaluate companies based on specific ESG practices criteria. This highlights the rise in recognition of the climate crisis and how it must be addressed in the real estate industry.

“Now that there is the necessary awareness of the need for climate action, we must continue to take small steps that will have a big impact in the future,” said Taylor.

Growing demand

Stakeholders are already witnessing demand for properties that meet high environmental standards in the emirate.

“To give you an example, Siemens has a global mandate for their office buildings to meet a minimum LEED Gold certification and they chose to base their regional HQ in Masdar City, which is already home to one of the largest clusters of low-carbon buildings in the world,” said Francisco Galan, director at Masdar Green REIT and head of development and portfolio management at Masdar City. 

The German multinational’s regional headquarters in Masdar City is the first LEED Platinum-certified office building in Abu Dhabi and one of the first assets acquired by Masdar Green REIT in 2020.

Major decisions, such as headquarter location, highlight again the investor and tenant appetite for sustainable real estate options. The Masdar Green REIT gives investors that option by investing in sustainable income-generating real estate assets, with a primary focus in Masdar City. This REIT also provides a vehicle through which third-party, sustainable developers can monetise their assets, attracting both real estate developers to Masdar City, and aspiring local and international sustainable investors

Francisco Galan, Masdar Green REIT

The demand and supply for sustainable products are interlinked. Demand will drive the creation of the product and vice versa.

“Unless there is change demanded for your product, you will continue to build things the same old way,” said a senior representative from a real estate development company. “It is indicative that people want a certain kind of lifestyle and will commit to projects that support this.”

In January 2022, Abu Dhabi developer Aldar announced The Sustainable City project, to be jointly developed with Diamond Developers at a value of AED1.8bn ($490m).

The community will comprise townhouses, apartments and retail spaces, spanning an area of 397,000 square metres on Yas Island. A core part of the development is its sustainability factor. It will be powered by renewable energy and incorporate practices around energy efficiency, recycling and indoor vertical farming.

Aldar is also the first real estate company in the Middle East and North Africa (Mena) to secure a sustainability-linked loan. In 2021, it signed a five-year AED300m facility with HSBC that connects interest rates payable to achieving sustainability targets.

READ: Key highlights from the first Abu Dhabi Real Estate Roundtable

Positive change

According to stakeholders at the roundtable, the relatively young responsible investing landscape is evolving rapidly. However, there are numerous challenges around the harmonisation and consistency of data, measurement and maintaining high standards in the real estate industry. 

Organisations need to start somewhere, and the considerations made today by backing and introducing these priorities in key projects and developments can help create incremental positive change for the future. 

Even as demand for sustainable products rises, issues such as upgrading existing properties and a hesitancy to embrace the shift still linger.

“One of the initiatives we have recently introduced in another Dubai property portfolio has been ARC reporting on all assets to highlight, to both tenants and shareholders, some of the lower levels of sustainability these assets are currently achieving,” said Masdar REIT’s Taylor.

He explained that the motivation behind this initiative is to emphasise the need for improvement at both the asset level and, in some cases, tenant behaviour as well. 

Retrofitting is another tactic that the government and developers are turning towards as they seek to upgrade existing assets to higher standards. 

In a recent announcement, Aldar said it would invest AED25m ($6.8m) to energy retrofit 13 of its residential communities. The investment will offset 19,000 tonnes of carbon dioxide emissions annually and reduce utility consumption by AED12m across the communities.

READ: Retrofit can be a realistic route to net zero

Abu Dhabi’s Mubadala Investment Company has placed responsible investing at the core of its business. Against the backdrop of climate action, the energy transition and the role of business in society, it is continuing to integrate principles of investing responsibly into its decision-making and asset management processes. 

To help build fluency and institutionalise ESG, Mubadala has established a dedicated, responsible investing unit to support its business along this journey.  

Implementing change is not easy, and getting people on board with green investment strategies can be challenging, given this is a relatively new investment landscape. 

Yet industry players state that partnerships can help achieve sustainable value creation while delivering tangible change and positive impact. A call to action is needed and banks can be seen supporting such efforts by confirming their position to finance projects that meet responsible investing criteria.

At a glance: Sustainable development in Abu Dhabi

National targets

The government’s appetite to support sustainable development is underscored in long-term goals such as Abu Dhabi Vision 2030.

For example, the Estidama building design certification system is geared at measuring the environmental performance of built structures from planning all the way through to the decommissioning stage. Within Estidama, the Pearl green building rating system provides minimum criteria that buildings and villas in the emirate must meet from a sustainability aspect.

A dedicated Environment Vision 2030 defines five priority areas (climate change; clean air and noise pollution; water resources; biodiversity, habitats and cultural heritage; and waste management) to ensure integration among three key pillars: environmental, economic and social.

Abu Dhabi Global Market

Launched in 2013 on Abu Dhabi’s Al-Maryah Island, the Abu Dhabi Global Market (ADGM) is an international financial centre and free zone recognised for its continuously evolving regulatory framework and innovative business environment. 

Keeping in line with national and international demand for sustainability, ADGM has increasingly turned its focus towards green finance practices and supporting ESG-led investments.

2019 saw the launch of the Abu Dhabi Sustainable Finance Declaration by the ADGM. The declaration, supported by over 46 public and private sector entities, aims to increase the quality and depth of green financial products in the emirate, and to create a thriving, sustainable finance industry.

In June 2021, Abu Dhabi was ranked fourth-highest in the Mena region and 50th globally on the Global Green Finance Index.

Masdar City

Designed as a low-carbon urban development, Masdar City minimises the use of resources and reduces the generation of waste through smart building practices, energy efficiency and clean technology.

Masdar City is also home to the International Renewable Energy Agency (Irena) headquarters, a global intergovernmental organisation providing insights and consultancy support regarding energy transition. 

Stemming from efforts in Masdar City is a green real estate investment trust (REIT), the first of its kind in the region, which directs funds towards sustainable properties within the city. Launched in 2020, the Masdar Green REIT provides investors with responsible investment options. 

Earlier this year, the REIT signed a financing commitment of a $200m green loan with First Abu Dhabi Bank (FAB) to facilitate portfolio growth.

As of December 2021, the REIT’s portfolio was valued at AED980m ($267m), marking a valuation gain of AED32m ($8.7m) over the year.
https://image.digitalinsightresearch.in/uploads/NewsArticle/10391259/main.gif
Mehak Srivastava

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Egypt seeks consultant for major inland waterway study

    18 November 2025

    Egypt’s Transport Ministry has issued an expressions of interest (EOI) request, through the River Transport Authority, to appoint a consultancy firm for a study on a proposed inland waterway linking Lake Victoria to the Mediterranean.

    The consultant will carry out basin-wide data collection and prepare a strategic environmental and social assessment for the project.

    The assignment includes hydrological, topographic, bathymetric and geotechnical surveys across the Nile Basin.

    The consultancy is expected to run for about 15 months, starting in February or March 2026.

    Firms must submit EOIs by 6 December.

    The study forms part of the Vic-Med project, a multi-country plan to establish a continuous inland waterway from Lake Victoria to the Mediterranean Sea.

    The masterplan project aims to reduce transport costs for landlocked countries and provide a lower-carbon alternative to road freight along the Nile corridor

    The work is part of phase two, part one of the feasibility study, funded through a $2m grant from the New Partnership for Africa's Development – Infrastructure Project Preparation Facility (NEPAD–IPPF), the African Development Bank’s (AfDB) fund for early-stage project development.

    The first phase, completed in July 2019 with $650,000 in AfDB funding, developed the project’s legal and institutional framework and launched two regional inland water transport programmes.

    The second phase, valued at $11.7m, covers updated feasibility studies and expanded technical assessments supporting detailed engineering design and cost-benefit analysis in the next stage. 

    This phase also covers the establishment of a regional operating unit for the project in Cairo.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15108707/main.jpg
    Mark Dowdall
  • Kuwait to make decision on four oil pipeline packages

    18 November 2025

     

    Kuwait is evaluating bids on four packages for a major pipeline project after prices were submitted earlier this month, according to industry sources.

    The four separate packages cover pipeline work in the north, south, east and west regions of the country, sources said.

    Although the total of all bids submitted by Kuwait-based Alghanim International General Trading & Contracting is the lowest at KD419m ($1.4bn), the company submitted the lowest individual bid on only one package, located in northern Kuwait.

    Its bid for the north Kuwait package was KD149.8m ($488.3m).

    Mechanical Engineering & Construction Company submitted the lowest bids for pipeline work on two packages located in the south and east of the country. 

    Both of these bids were valued at KD97,868,394 ($319m).

    Al-Dar Engineering & Construction Company is the low bidder on the fourth package, for pipe work in western Kuwait, submitting a bid of KD64,825,398 ($211.3m).

    Together, all four contracts are expected to be worth about $1.4bn when awarded.

    The scope of all four packages focuses on developing new flowlines and connecting pipelines for oil-producing wells and water wells.

    In some cases, companies are also required to replace old flowlines.

    The contracts are based on work orders, so when KOC needs to connect wells it will issue a request for work execution, industry sources said. 

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15106496/main.png
    Wil Crisp
  • Indian firm wins Oman chemicals project EPC contract

    17 November 2025

    Register for MEED’s 14-day trial access 

    Indian contractor Nuberg EPC has won a contract to perform engineering, procurement and construction (EPC) works on a project to build chlor alkali and calcium chloride plants in Oman for privately-owned Al-Ghaith Chemical Industries.

    The project involves expanding Al-Ghaith’s existing chlor alkali plant in Sur Industrial City, by adding 120 tonnes a day (t/d) of capacity, taking the unit’s total output capacity to 190 t/d. The project also involves building a calcium chloride plant that will have a production capacity of 80 t/d.

    Nuberg EPC said the contract is being executed on a lump sum turnkey basis, with its scope covering design, front-end engineering and design (feed), detailed engineering, procurement, fabrication, construction, commissioning and handover.

    Project execution is already under way, with completion targeted within 19 months, Nuberg EPC said.

    The project marks the second phase of Al-Ghaith’s integrated chemicals complex in Sur and represents a first-of-its-kind large-scale chlor alkali expansion in Oman.

    Nuberg EPC also performed EPC works on the original chlor alkali plant, which has a capacity of 70 t/d.

    In addition to the Oman project, Al-Ghaith has, in the previous decade, also brought on board Nuberg EPC for its chlor alkali and calcium chloride plants in Abu Dhabi. Those contracts covered the commissioning of a 60 t/d chlor alkali plant that was later expanded to 120 t/d, and the execution of a 125 t/d calcium chloride plant and a 50 t/d carbon dioxide plant.

    Nuberg EPC has also executed the expansion of a 45 t/d chlor alkali plant and a greenfield 80 t/d calcium chloride plant for Oman Chlorine in Sohar, increasing the total chlor alkali output capacity to 75 t/d.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15104096/main5048.jpg
    Indrajit Sen
  • Egypt starts production from strategic gas field

    17 November 2025

    Egypt has started gas production from the West Burullus field in the Mediterranean Sea, after connecting the first wells to the national gas grid, according to a statement from the country’s Petroleum & Mineral Resources Ministry.

    Productivity testing showed an output rate approaching 45 million cubic feet a day (cf/d).

    Kareem Badawi, Egypt’s Petroleum & Mineral Resources Minister, said he intends to accelerate development of the field and confirmed that work is under way to connect two additional wells, with the aim of increasing production to 75 million cf/d in the coming months.

    He added that the ministry aims to cut the county’s gas import bill by boosting domestic production.

    The operator of the concession is Cheiron, an Egyptian independent exploration and production company.

    Egypt’s oil ministry said in its statement that the West Burullus field development project represents a model for future integrated projects and investment plans.

    It said that a range of domestic and foreign companies are involved in bringing the field into production.

    In February, a banking consortium led by Banque du Caire, alongside Arab International Bank, Al-Baraka Bank Egypt and Saib Bank, arranged $75m in syndicated medium-term financing for Cheiron Egypt Delta, a subsidiary of the Cheiron Group.

    This financing will help cover part of the investment costs for the gas field development project.

    At the time, Cheiron said that the financing will provide up to 45.5% of the total $165m investment required for the project.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15102295/main3406.jpg
    Wil Crisp
  • Major Iraq refinery project stalls

    17 November 2025

     

    Construction has yet to start on Iraq’s Al-Faw Investment Refinery project due to a range of problems, according to industry sources.

    In May last year, a statement released by the Iraqi Prime Minister’s Office said that Iraq’s state-owned Southern Refineries Company and China National Chemical Engineering Company (CNCEC) had signed a contract to develop the project.

    Iraq’s Oil Ministry previously said the project would be worth $7bn-$8bn.

    One source said: “This project is failing to make progress despite the efforts of senior political figures in the country.”

    A meeting was chaired by Iraqi Prime Minister Mohammed Shia Al-Sudani in August this year to discuss and try to resolve the problems that are stopping the commencement of construction, according to industry sources.

    It is believed that financing remains a key obstacle for the project.

    The Al-Faw project is part of the Iraqi government’s plan to increase Iraq’s refining capacities, attract foreign investment and increase the production of petroleum products domestically.

    The refinery will have a capacity of 300,000 barrels a day and will produce oil derivatives for both domestic and international markets.

    The project will be carried out in two stages.

    The first phase will involve refining operations, while the second will involve constructing a petrochemicals complex with a capacity of 3 million tonnes a year.

    The project also includes the construction of a 2,000MW power plant and the establishment of the Al-Faw Academy for Refinery Technology, to train 5,000 Iraqi workers that will eventually work at the facility.

    Hualu, a subsidiary of CNCEC, signed a preliminary principles agreement for the project in December 2021.

    At the time, Iraq’s Oil Ministry said that the project would have a value of $7bn-$8bn.

    Due to material price inflation since December 2021, some insiders believe that the project value may now be significantly higher.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15102287/main.jpg
    Wil Crisp