Aldar Properties PJSC became the biggest listed developer in the United Arab Emirates after its shares rose the most in six years on the back of an $8.2 billion deal with a state-owned entity in Abu Dhabi.
The stock climbed as much as 15% to trade at 2.54 dirhams ($0.69), the highest level since early 2017. The rally lifted Aldar’s market value to about 20 billion dirhams, taking it past Burj Khalifa developer Emaar Properties PJSC.
Aldar will take over the development and management of projects worth 30 billion dirhams in Abu Dhabi as part of an agreement with ADQ, according to a statement on Sunday. The transaction “will significantly support future profit growth,” Aldar Chief Executive officer Talal Al Dhiyebi said.
Much of the UAE has been struggling with excess supply in the real estate market, a glut compounded by job losses that are pushing the largely expatriate population out. Although oversupply in Abu Dhabi is less severe than in Dubai, there have been concerns around prospects for growth.
Property prices have slid by 30% in Dubai since 2014 amid a slump in oil prices, a commodity that underpins the economies of the entire Gulf region. Now, the pandemic has hit even the most diversified companies as hospitality, retail, education and commercial real estate struggle with declining demand.
Much of the UAE has been struggling with excess supply in the real estate market, a glut compounded by job losses that are pushing the largely expatriate population out. Although oversupply in Abu Dhabi is less severe than in Dubai, there have been concerns around prospects for growth.
Property prices have slid by 30% in Dubai since 2014 amid a slump in oil prices, a commodity that underpins the economies of the entire Gulf region. Now, the pandemic has hit even the most diversified companies as hospitality, retail, education and commercial real estate struggle with declining demand.
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