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
  • Bahrain’s willingness to disrupt takes flight with Air Asia

    14 November 2025

    Commentary
    Colin Foreman
    Editor

    As the smallest economy in the GCC, Bahrain has long understood that its competitive edge lies in being agile and prepared to disrupt established economic models.

    This proactive approach began decades ago with the deregulation of its telecoms sector, positioning it ahead of many GCC peers in opening that market. More recently, the same strategic foresight emerged in the fintech space with the early adoption of regulatory sandboxes and a supportive digital finance ecosystem.

    Bahrain’s disruptive lens is now focused on the aviation sector. At the Gateway Gulf investor forum in Manama on 3 November, Bahrain signed a letter of intent with Malaysia-headquartered Capital A Berhad and Air Asia. The agreement covers the establishment of a hub in Bahrain as low-cost carrier Air Asia and its related businesses expand beyond Asia into new markets, including Europe and Africa.

    A hub in Bahrain, which is located to the west of its existing hubs in Asia, will allow Air Asia to connect to the European and African markets, allowing it to develop a network that will be a low-cost alternative to the full-service airlines based in the Gulf that also bridge east and west, including Bahrain’s flag carrier Gulf Air.

    Bahrain and Air Asia will not be competing on scale; instead, they will disrupt with lower prices. This agility will allow the kingdom to carve out a distinctive niche in an otherwise highly competitive market.

    The strategic pivot is made viable by recent, essential capital investment in aviation infrastructure. A new terminal building was opened at Bahrain International airport in 2022. This has significantly increased passenger capacity and modernised operations, creating an attractive platform for a major international low-cost carrier like Air Asia to base its extensive operations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15090817/main.gif
    Colin Foreman
  • Firms interested in Qiddiya high-speed rail revealed

    14 November 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company and the National Centre for Privatisation & PPP, have received interest from over 145 local and international companies for a contract to develop the Qiddiya high-speed rail project in Riyadh.

    These include 68 contracting companies, 23 design and project management consultants, 16 investment firms, 12 rail operators, 10 rolling stock providers and 16 other services firms.

    The lead developers and contractors that have expressed interest are:

    • Afcons Contracting Company / Shapoorji Pallonji (India)
    • Al-Omaier Trading & Contracting (local)
    • Al-Rashid Trading & Contracting Company (local)
    • Al-Rawaf Contracting (local)
    • Al-Ayuni Investment & Contracting Company (local)
    • AlBawani (local)
    • Al-Fahd Company (local)
    • Alghanim International (Kuwait)
    • Alkhorayef Water and Power Technologies (local)
    • Almabani General Contractors (local)
    • Amar (local)
    • Anjal Al-Khair Contracting (local)
    • Aviation Industry Corporation of China (China)
    • Bouygues Travaux Publics (France)
    • China Railway 18th Bureau Group (China)
    • China Harbour Engineering Company (China)
    • Built Industrial Company (local)
    • Cap France (France)
    • China Civil Engineering Construction Corporation (China)
    • China Machinery Engineering Corporation (China)
    • China Railway Construction Corporation (China)
    • China Railway International Group Co (China)
    • Copasa (Spain)
    • Dineshchandra R. Agrawal Infracon (India)
    • Dogus Insaat (Turkiye)
    • EDECS Contracting (Egypt)
    • El-Seif Engineering Contracting (local)
    • El-Soadaa Group (Egypt)
    • ElSewedy Electric (Egypt)
    • Esnad Contracting (local)
    • FCC Construccion (Spain)
    • Freyssinet (France)
    • Global Construction Development Solutions Company (local)
    • Gulermak (Turkiye)
    • Hassan Allam Construction (Egypt)
    • Hyundai Engineering & Construction (South Korea)
    • IC Ictas (Turkiye)
    • Imathia Construccion (Spain)
    • Kalyon Insaat (Turkiye)
    • Kolin Construction (Turkiye)
    • Larsen & Toubro (India)
    • Makyol (Turkiye)
    • Mapa Group (Turkiye)
    • Marubeni (Japan)
    • Mofarreh AlHarbi & Partners (local)
    • Mota-Engil (Portugal)
    • Mubarak Abdullah AlSuwaiket & Sons (local)
    • Nesma & Partners (local)
    • Nesma Infrastructure & Technology (local)
    • Nurol Construction (Turkiye)
    • Orascom Construction (Egypt)
    • Saudi Pan Kingdom (local)
    • Redco International (Egypt)
    • Rio Contracting (local) (local)
    • Rowad Modern Engineering (Egypt)
    • Safari Company (local)
    • Saipem (Spain)
    • Salcef (Spain)
    • Samama (local)
    • Samsung C&T Corporation (South Korea)
    • Saraya Al-Andalus (local)
    • Syneox (Cobra) (Spain)
    • The Arab Contractors (Egypt)
    • Twaik Holding (local)
    • UCC Holding (Qatar)
    • Webuild (Italy)
    • Yapı Merkezi (Turkiye)

    Expressions of interest have also been submitted by the following design and project management consultants:

    • Aecom (US)
    • AtkinsRealis (Canada)
    • Ayesa Engineering (Spain)
    • CH2M (USA)
    • Contrax International (UAE)
    • El-Raeid Consulting Engineers (Egypt)
    • Gensler (US)
    • Geoharbour (China)
    • Hatch (Canada)
    • Hill International (US)
    • Idom (Spain)
    • Introsoft Solutions (India)
    • Italferr (Italy)
    • KL Consults Associates (Malaysia)
    • Kunhwa Engineering and Consulting Company (South Korea)
    • Marrs Global (UK)
    • One Works (Italy)
    • PPMDC (local)
    • Rina Services (Italy)
    • Sener (Spain)
    • Surbana Jurong (Singapore)
    • Systra (France)
    • Typsa (Spain)

    Equity investors that expressed interest in the Qiddiya high-speed rail project are:

    • Aberdeen Investcorp (Bahrain)
    • AlGihaz Holding (local)
    • Almutlaq Real Estate Investment Company (local)
    • Arj Holding (local)
    • Foure Holdings (US)
    • Itochu Corporation (Japan)
    • Korea Overseas Infrastructure & Urban Development Corporation (Kind; South Korea)
    • Lamar Holding (local)
    • Mada International Holding (local)
    • Meritz Financial Group (South Korea)
    • MXB Investment (local)
    • Plenary (Australia)
    • Sojitz (Japan)
    • Tamasuk (local)
    • Vinci Concessions (France)
    • Vision Invest (local)

    The rail operators that submitted expressions of interest are as follows:

    • Alsa Grupo (Spain)
    • Alsaif Transportation Company (local)
    • DB International Operations (Germany)
    • Ferrovie dello Stato Italiane (Italy)
    • Intertoll Europe (Hungary)
    • Keolis (France)
    • Moventis (Spain)
    • MTR Corporation (Hong Kong)
    • Ratp Dev (France)
    • Renfe Operadora (Spain)
    • Serco (UK)
    • Transdev (France)

    Interest in the project was also expressed by the following 10 rolling stock and systems suppliers:

    • Alstom (France)
    • CAF (Spain)
    • Colas Rail (France)
    • CRRC (Hong Kong)
    • CRRC Changchun Railway Vehicles (China)
    • Hitachi Rail (Japan)
    • Hyundai Rotem (South Korea)
    • Siemens (Germany)
    • Stadler Rail (Switzerland)
    • Talgo (Spain)

    And finally, the other service providers that expressed interest in the project are:

    • Al-Nasser (local)
    • Alutec (Qatar)
    • Alvarez & Marsal (US)
    • Comatec (Finland)
    • Concrete Technology Company (UAE)
    • Generale Costruzioni Ferroviarie (Italy)
    • Hogan Lovells (UK)
    • Indra (Spain)
    • Intellex Consulting Services (US)
    • International SOS (UK)
    • Najd Wire Industries Company (local)
    • Rawasi Albina (local)
    • Smart Directions (local)
    • STC (local)
    • Workforce Staffing Solutions (UAE)
    • Zebraware (UK)

    The firms submitted their expressions of interest on 12 October, as MEED reported.

    The clients issued the notice to the market in September.

    The Qiddiya high-speed rail project will connect King Salman International airport and King Abdullah Financial District (KAFD) in Riyadh with Qiddiya City.

    Also known as Q-Express, the railway line will travel at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The project was previously planned to be developed under a conventional model, but will now progress under a public-private partnership (PPP) model.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole – which is understood to include the Public Investment Fund’s proposed 2-kilometre-tall tower – and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of Riyadh. 

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project.

    UK-based consultancy Ernst & Young is acting as the transaction adviser on the project. Latham & Watkins is the legal adviser.

    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15090776/main.gif
    Yasir Iqbal
  • Meraas awards $120m Citywalk expansion project deal

    14 November 2025

    Register for MEED’s 14-day trial access 

    Local real estate developer Meraas has awarded a AED440m ($120m) contract for the construction of the Northline residential project in the Al-Wasl area of Dubai.

    The contract was awarded to the local GCC Contracting Company.

    The project includes the construction of three residential buildings. Construction works are expected to begin shortly and the project is slated for completion by 2027.

    The enabling works were undertaken by the local International Foundations Group.

    The project is part of the recently announced City Walk expansion project.

    In June, Merass announced the City Walk Crestlane project as it continued its expansion of the City Walk residential community.

    City Walk Crestlane comprises two residential towers offering 198 one- to five-bedroom units.

    The project is expected to be completed and handed over by the third quarter of 2028.

    Meraas’ latest project contract award in Dubai is backed by heightened real estate activity in the UAE’s construction market. Schemes worth over $323bn are in the execution or planning stages, according to UK analytics firm GlobalData.

    The company forecasts that the output of the UAE’s construction sector will grow by 4.2% in real terms in 2025, supported by developments in infrastructure, energy and utilities, as well as residential construction projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15090114/main.png
    Yasir Iqbal
  • Contractors prepare bids for Aramco gas compression project

    13 November 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Aramco is making progress with the main contract tendering process for a project to boost gas compression capacity at the Shedgum and Uthmaniya processing plants in the kingdom’s Eastern Province.

    The Shedgum and Uthmaniya plants currently receive approximately 870 million cubic feet a day (cf/d) and 1.2 billion cf/d of Khuff raw gas, respectively.

    Through this multibillion-dollar project, Aramco aims to increase the compression and processing capacity of the two plants, as well as to construct new pipelines to enhance gas transport.

    Contractors are preparing bids for several engineering, procurement and construction (EPC) packages of the Shedgum and Uthmaniya gas compression capacity expansion project. Aramco has set a bid submission deadline of 17 November, according to sources.

    The Saudi energy giant is understood to have started the solicitation of interest process for the main EPC contract tendering exercise in the fourth quarter of last year.

    Aramco then issued the tenders for the EPC packages of the scheme during the second quarter of this year and set an initial bid submission deadline of 17 August, the sources said.

    In line with its aim of increasing gas production and processing capacity by 60% by 2030, with 2021 as its baseline, Aramco is investing significant capital in gas projects in the kingdom this year.

    Aramco’s capital expenditure (capex) in the third quarter of 2025 stood at $12.55bn, a marginal year-on-year increase of 2%. For the first nine months of the year, the firm registered capex of $37.41bn, an increase of 3.38% compared to the same period last year.

    The company previously announced capital investment guidance in the range of $52bn-$58bn for 2025, excluding around $4bn of project financing.

    ALSO READ: Aramco turns attention to strategic projects

    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/15075053/main4642.jpg
    Indrajit Sen
  • Aramco Stadium races towards completion

    12 November 2025

     

    Register for MEED’s 14-day trial access 

    The Aramco Stadium in Khobar is moving forward at an impressive pace as the fast-track project races towards completion in 2026.

    The 47,000-seat stadium will be the new home for the Aramco-owned Al-Qadsiah Club and a key venue for the 2027 AFC Asian Cup and the 2034 Fifa World Cup. 

    The project’s progress stems from detailed planning and an accelerated delivery strategy. The project was conceived in May 2023, with the design process, managed by Aramco, commencing shortly thereafter. 

    “We completed the design within six months,” said Mohammed Subhi, the Aramco Stadium’s project manager.


    The project advanced quickly due to thorough planning and a fast-track delivery approach. Initiated in May 2023, the design phase—overseen by Aramco—was completed within six months

    An early engagement approach with the main contractor – a joint venture of Besix and Al-Bawani – was instrumental in maintaining momentum. This partnership began early in 2024, allowing for collaborative input on critical construction elements. 

    This upfront collaboration minimised pre-construction time, ensuring a rapid transition to site work.

    Engineering challenges

    The stadium’s architectural design, inspired by the natural whirlpools of the Gulf and featuring interwoven transparent sails, presents significant engineering challenges, particularly in the structural steel and façade work. For spectator comfort, the stadium is equipped with full cooling systems and designed to the highest international standards.

    Logistics management is another crucial facet of the project, which is located in central Khobar. With thousands of workers on site, the movement of materials is tightly controlled to minimise community disruption. 

    “We control how many trucks can enter the site and at what time. For example, we cannot cast concrete during the day. It has to be after 6pm, up until the early morning,” said Subhi.

    A key priority on site is health and safety, an area where the organisation’s legacy from its oil and gas operations is clearly visible. Subhi explains that the principle of health and safety is part of the company’s DNA and is embodied in the deployment of advanced technology and rigorous standards, which have collectively resulted in over 10 million safe working hours to date.

    The project employs a sophisticated Smart Safety Command Centre (SCC), which utilises artificial intelligence-based monitoring and 24/7 surveillance. One key feature of the centre is the crane collision prevention system – a key technological advancement in heavy machinery coordination and a first for the region. 

    “We have tower cranes and crawler cranes talking to each other. The anti-collision system means cranes talk to each other without human interference, and they automatically shut down when they are too close to each other,” said Subhi.


    A key technological advancement is the crane collision prevention system, which means the cranes talk to each other and shut down if they become too close

    In addition to ground operations, the project is leveraging aerial technology to mitigate risk in high-altitude work.

    “We have used drones for the inspection of the cranes and inspection of the steel structure itself to minimise the risk of working at height,” said Subhi.


    Drones have been adopted on-site to mitigate the risk of working at height

    Worker welfare

    The project’s commitment extends beyond mere regulatory compliance to comprehensive worker welfare, establishing a high standard for construction sites in the region. 

    With current staffing reaching approximately 11,000 direct and indirect workers, welfare provisions are a core priority, linking directly back to Aramco’s corporate standards.

    In a region where extreme heat is a constant challenge, the project has implemented advanced heat stress management protocols. This includes the installation of heat sensors with alarm systems, mandatory work stoppage during peak heat hours and regular briefings on heat exhaustion symptoms. Fully air-conditioned rest areas are provided for breaks and meals.

    Aramco is also committed to developing national talent. A significant proportion of the staff are young, and about 20% of the team are women.

    The relationship with the joint-venture contractor is defined by collaboration rather than traditional client-contractor hierarchy. “We are one team, working together,” said Subhi. This approach has fostered a cooperative environment that is accelerating the on-site progress towards the 2026 completion goal. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073939/main.gif
    Colin Foreman