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
  • Dubai scales up its metro ambitions

    23 April 2026

     

    Dubai’s rail sector has rarely seen such a concentrated burst of procurement activity as it has in the past year.

    Within the space of a few months, Dubai’s Roads & Transport Authority (RTA) has moved simultaneously on three distinct fronts: tendering design consultancy for the Route 2020 extension that will connect the Expo 2020 metro station to Al-Maktoum International airport; inviting study-and-design bids for a 55-kilometre Airport Express Line linking Dubai International airport to Al-Maktoum International airport; and culminating in Dubai Ruler Sheikh Mohammed Bin Rashid Al-Maktoum’s approval of the AED34bn ($9.2bn) Gold Line, a 42km fully underground route that the emirate is calling the largest transportation project in its history.

    These projects form a key part of the Dubai Rail Network Plan 2032, which outlines the development of six public transportation schemes comprising a mix of metro, passenger and high-speed rail lines.

    The most prominent feature of the plan is the addition of new lines to Dubai Metro’s existing network, representing a systematic effort to support the shift of Dubai’s economic centre of gravity towards Dubai South and the vast development corridors in between.

    The city is also seeking to stay ahead of the curve by investing heavily in infrastructure. Data from regional projects tracker MEED Projects shows that the emirate has awarded over $14bn-worth of transport projects in the past two years alone, with several other multibillion-dollar schemes still moving through the planning stages.

    All of this work is being carried out in line with the Dubai 2040 Urban Master Plan, which forecasts the emirate’s population will reach 5.8 million by 2040 – a clear indication of the scale of daily movement the city must accommodate.

    Project progress

    Dubai Metro Gold Line

    On 21 April, Sheikh Mohammed officially announced the launch of the new AED34bn ($9.2bn) Gold Line project.

    The line will be a fully underground network spanning over 42 kilometres, with 18 stations.

    It will run from Al-Ghubaiba in Bur Dubai to Jumeirah Golf Estates.

    The Gold Line will connect with Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger network.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the project.

    Stage one covers concept design; stage two, preliminary design; stage three, preparation of tender documents; stage four, construction supervision; and stage five, the defects liability period.

    Airport Express Line

    Procurement has started for another metro line extending from Dubai International airport (DXB) in Al-Garhoud to Al-Maktoum International airport (DWC) in Jebel Ali.

    Earlier this month, the RTA invited consultants to bid for a contract to study and design what is referred to as the Airport Express Line.

    The proposed line will stretch about 55km and include five stations that will provide passengers with facilities such as remote airline check-in, baggage drop-off and security screening.

    The new line will run from the Red Line metro station at DXB through Al-Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC), before continuing on to DWC.

    There will be two spur lines. The first will run from the new JVC station to Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch toward Business Bay, where another station will be built.

    Expo 2020 route extension

    Dubai is also undertaking the Route 2020 extension of its metro system, which will start from the Expo 2020 metro station and connect with Al-Maktoum International airport’s West Terminal.

    Consultants submitted their bids earlier this month for the design contract.

    The extension will run for about 3km and feature two stations.

    The existing Route 2020 metro link is a 15km line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.

    Dubai Metro Blue Line extension

    Construction progress on the Dubai Metro Blue Line extension is expected to reach 30% by the end of 2026, according to official accounts.

    In December 2024, the RTA awarded a AED20.5bn ($5.5bn) main contract for the construction of the project.

    The contract was awarded to a consortium of Turkiye’s Limak Holding, Mapa Group, also of Turkiye, and the Hong Kong office of China Railway Rolling Stock Corporation (CRRC).

    The Blue Line will connect the existing Red and Green lines. It will be 30km long, with 15.5km underground and 14.5km above ground.

    The line will have 14 stations, seven of which will be elevated. There will be five underground stations, including one interchange station, and two elevated transfer stations connected to the existing Centrepoint and Creek stations.

    The project is scheduled for completion in September 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16534887/main.png
    Yasir Iqbal
  • Sports Boulevard tenders Wadi Hanifa road works

    23 April 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Sports Boulevard Foundation has issued a tender inviting firms to bid for a contract to build a road and associated infrastructure in the Wadi Hanifa area of Riyadh.

    The bid submission deadline is 27 April.

    The scope includes construction of an 11.4-kilometre road and associated infrastructure, including public realm works, utilities and security systems.

    The scheme is the latest package to progress on Riyadh’s Sports Boulevard project.

    The Sports Boulevard Foundation is also evaluating bids for its Global Sports Tower in the development’s Athletics District.

    The 130-metre-tall Global Sports Tower will have a gross floor area of 84,000 square metres (sq m) and will include more than 30 sports facilities. The tower will feature what is billed as the world’s tallest indoor climbing wall, at 98 metres, and a 250-metre running track.

    Sports Boulevard will run across Riyadh from east to west. Once complete, it is intended to be the world’s longest park, stretching more than 135 kilometres.

    The project is divided into multiple districts, including the Wadi Hanifah, Arts, Urban Wadi, Entertainment, Athletics and Eco districts, as well as Sands Sports Park.

    The large-scale development aims to transform central Riyadh – currently dominated by major highways – into a recreational corridor.

    Sports Boulevard will include 4.4 million sq m of public realm and landmark buildings. Along with the Global Sports Tower, there will be a Centre for Cinematic Arts and a 2,000-seat amphitheatre.

    It will also deliver more than 2.3 million sq m of mixed-use commercial, residential and retail space, alongside sports facilities, around the park, known as the Linear Park.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16534345/main.jpg
    Yasir Iqbal
  • Masdar to develop renewables projects in Montenegro

    23 April 2026

    Abu Dhabi Future Energy Company (Masdar) and Elektroprivreda Crne Gore (EPCG) have agreed to establish a 50:50 joint venture to develop and operate renewable energy projects in Montenegro.

    The planned projects include solar photovoltaic (PV), wind, hydropower, pumped-hydro storage and battery energy storage systems.

    The joint venture will be headquartered in Niksic in western Montenegro and is intended to support Montenegro’s domestic energy needs while also enabling the export of renewable electricity to the Western Balkans and Southern Europe, Masdar said in a statement.

    The companies plan to leverage an existing sub-sea interconnection with Italy. Montenegro is connected to Italy via a 600MW HVDC submarine cable, enabling electricity exports to the Italian market.

    Masdar has an existing presence in Montenegro through its investment in the 72MW Krnovo wind farm.

    The developer has recently accelerated foreign investment plans as part of its broader expansion. In April, it signed a binding agreement with France’s TotalEnergies to establish a $2.2bn joint venture to develop, build and operate renewable energy projects across Asia.

    The combined business will have 3GW of operational capacity and 6GW of projects in advanced development, targeted for commissioning by 2030.

    Masdar is targeting a global renewable energy portfolio of 100GW by 2030. It recently reached 65GW, two-thirds of the way to that target.

    The company plans to deploy an additional $30bn-$35bn in equity and project finance by 2030, adding an average of 10GW of new capacity each year.

    This expansion will be funded through a mix of equity, green bonds and long-term project financing.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16534112/main.jpg
    Mark Dowdall
  • Qiddiya sets new deadline for infrastructure package

    23 April 2026

     

    Saudi gigaproject developer Qiddiya Investment Company (QIC) has set a 13 May deadline for bids for a contract covering new infrastructure works at Qiddiya Entertainment City.

    The scope comprises two infrastructure development packages for District 0 of Qiddiya Entertainment City, including the construction of four event park-and-ride facilities.

    The tender was issued on 11 March, with an initial bid submission deadline of 22 April.

    Lebanese firm Dar Al-Handasah and Saudi-based Sets International are serving as project consultants.

    QIC is accelerating plans to develop additional assets at Qiddiya City. Earlier this month, the company received prequalification statements from firms for the engineering, procurement, construction and finance package for the Qiddiya high-speed rail project.

    MEED has also reported that QIC received bids from contractors on 23 February for a SR980m ($261m) contract covering the construction of staff accommodation at Qiddiya Entertainment City.

    The project will cover an area of more than 105,000 square metres (sq m).

    Also in February, QIC started the main construction works on its performing arts centre at the entertainment hub.

    The Qiddiya City performing arts centre is one of several major projects within the greater Qiddiya development. Other projects include an e-games arena, Prince Mohammed Bin Salman Stadium, a motorsports track, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    QIC officially opened the Six Flags theme park to the public in December last year.

    The park covers 320,000 sq m and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    Saudi Arabia’s tourism sector posted record figures last year, with more than 130 million domestic and international visitors – a 6% increase on 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16533776/main.jpg
    Yasir Iqbal
  • Detailed design progressing for major Iraqi oil project

    23 April 2026

     

    Detailed design work is progressing on Iraq’s 950-kilometre seawater pipeline network under the Common Seawater Supply Project (CSSP), according to industry sources.

    They added that on-site construction would begin only after the detailed design is complete.

    Iraq’s state-owned Basra Oil Company (BOC) and China Petroleum Pipeline Engineering (CPP) signed a $2.5bn contract for the pipeline package in September last year.

    The project is being supervised by Austria’s ILF Consulting Engineers.

    The pipeline package is one of two main CSSP packages.

    The second focuses on a seawater treatment facility, expected to have a capacity of 5 million barrels a day (b/d), potentially rising to 7-8 million b/d in later phases.

    Processed water will be injected into some of Iraq’s largest oil fields – Rumaila, Zubair, West Qurna 1, West Qurna 2 and Majnoon – and also used in the Maysan and Dhi Qar fields.

    Iraq’s Oil Ministry said the injected water will help maintain reservoir pressure and sustain crude production.

    CPP is a subsidiary of state-owned China National Petroleum Corporation.

    TotalEnergies is responsible for the CSSP as part of the larger $27bn Gas Growth Integrated Project.

    Iraq approved a $2.45bn contract with South Korea’s Hyundai Engineering & Construction (Hyundai E&C) in August last year for the engineering, procurement and construction of the seawater treatment plant.

    Over recent weeks, Iraq’s oil exports have collapsed by about 80% due to fallout from the US and Israel’s war with Iran.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16527404/main.jpg
    Wil Crisp