12 November 2026
On 12 November 2026 Arada Capital, the fund management arm of the Arada group, signed a memorandum of understanding (MoU) with Alya, an institutional platform for premium residential development in the GCC backed by Brookfield and Lunate. The two sides plan a development and co-investment partnership for premium residential and mixed-use projects in the UAE and Saudi Arabia. The first two residential developments have an anticipated combined gross development value (GDV) of about AED 6 billion (around USD 1.63 billion). The opportunities being explored are in Downtown Dubai and on Yas Island in Abu Dhabi, subject to due diligence, a commercial agreement and the necessary approvals.
What was signed
The announcement was distributed by the Emirates News Agency (WAM) with a Sharjah dateline and published by Gulf News on 12 November 2026. The document is an MoU, not a final deal. It sets out the intention to build a strategic partnership in which Arada Capital brings access to the established development pipeline of the Arada group and its experience in delivering large communities, while Alya brings development and value creation expertise and an institutional approach to governance, capital discipline and delivery.
The partnership will start with two residential developments. According to the release, they form part of a broader pipeline of opportunities that both parties will evaluate. Each project still has to pass due diligence, reach a commercial agreement and obtain approvals before it moves ahead.
Key facts at a glance
| Item | Detail |
|---|---|
| Date | 12 November 2026 |
| Type of agreement | Memorandum of understanding (MoU) |
| Parties | Arada Capital (Arada group) and Alya |
| Backers of Alya | Brookfield and Lunate |
| First projects | Two residential developments |
| Combined GDV | About AED 6 billion (around USD 1.63 billion) |
| Locations being explored | Downtown Dubai and Yas Island, Abu Dhabi |
| Wider scope | Premium residential and mixed-use projects in the UAE and Saudi Arabia |
| Conditions | Due diligence, commercial agreement, necessary approvals |
Who is behind Alya
Alya is a new name in the market. Brookfield and Lunate launched it in early November 2026 as a platform for premium build-to-sell residential developments across the GCC. Alya has its regional headquarters in the Dubai International Financial Centre (DIFC), is regulated by the Dubai Financial Services Authority (DFSA) and is led by Chief Executive Officer Otto Dreyer. Its management team has more than 40 years of combined experience in regional residential real estate.
Alya has two backers:
- Brookfield is a global alternative asset manager headquartered in New York with over USD 1 trillion of assets under management across infrastructure, energy, private equity, real estate and credit.
- Lunate is a global investment firm headquartered in Abu Dhabi with more than USD 125 billion of assets under management.
Alya builds on an earlier step. On 20 May 2025 Brookfield and Lunate announced a joint venture with total projected equity of USD 1 billion to develop build-to-sell and opportunistic buy-to-sell residential assets across the UAE, Saudi Arabia and other markets in the Middle East.
Otto Dreyer said that successful developments are built on strong partnerships, trust and shared objectives, and that the proposed partnership combines those strengths with the track record of Arada in creating communities.
Arada Capital: the fund manager side
Arada Capital is a young platform as well. Arada announced it on 6 July 2026 as a funds management platform for institutional-grade real estate opportunities in the Middle East and selected international markets. It is based in the Abu Dhabi Global Market (ADGM), has received in-principle approval from the ADGM Financial Services Regulatory Authority (FSRA) and was seeking final licensing approval to act as a fund manager. Its target is USD 5 billion of assets under management (about AED 18.4 billion) within four years after the fund is established.
The platform is chaired by HRH Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada. Moustafa Fahour is Chief Executive Officer and Managing Director. He called the Alya partnership an important milestone in the ambition of Arada Capital as a fund manager, and said that the combination of the Arada development capabilities with the institutional expertise of Alya and the backing of Brookfield and Lunate can bring forward premium residential projects.
The parent company is a Sharjah-based master developer formed as a joint venture between KBW Investments and Basma Group. Its own projects include Aljada and Masaar in Sharjah. Globally, Arada has projects valued at AED 130 billion and a portfolio of more than 55,000 homes across the UAE, the UK and Australia.
Downtown Dubai and Yas Island: what is known and what is not
The release names two locations, Downtown Dubai and Yas Island, as opportunities being explored. It does not disclose the plots, the number of units, the split of the AED 6 billion between the two projects, launch dates, prices or the investment share of each partner.
Yas Island is not new ground for Arada. On 30 September 2026 Aldar and Arada announced a partnership worth about AED 15 billion that included the acquisition by Arada of three residential plots on Yas Island with a combined plot area of more than 27,500 square metres. We covered it in Aldar and Arada sign an AED 15 billion partnership for Seih Sdeirah and Yas Island. The Alya release does not say whether the Yas Island project would use those plots.
What this means for companies and investors in the UAE
For now the deal changes nothing in procedures, fees or rules. It is a statement of intent between two investment platforms. What it does show is how premium residential projects in the UAE are increasingly financed: through regulated fund and co-investment structures in DIFC and ADGM, with global and Abu Dhabi capital alongside a developer.
If you follow premium projects in Downtown Dubai or on Yas Island, a short checklist helps when an actual launch is announced:
- wait for the launch announcement with the project name, developer entity and payment plan, since an MoU is not a sales offer;
- check that the project is registered with the land authority of the emirate (Dubai Land Department or the Abu Dhabi Real Estate Centre) and that payments go to the project escrow account;
- decide in advance whether you buy personally or through a company, because this affects banking, financing and documents;
- if you plan to use a mortgage, compare bank terms for residents and non-residents before you reserve a unit.
Our guide to mortgages in the UAE for residents and non-residents explains how banks assess buyers and what documents they request.
How Atlant Capital can help
We support entrepreneurs and investors who build a base in the UAE. If you plan to hold property or investments through a company, we help choose the jurisdiction and handle company setup in the UAE, from licence to establishment documents. We also assist with corporate and personal bank account opening, which is usually the next step before any property payment.
Conclusion
Arada Capital and Alya signed an MoU on 12 November 2026 for a partnership that starts with two residential projects worth about AED 6 billion in combined GDV, in Downtown Dubai and on Yas Island. Both platforms are new: Alya was launched by Brookfield and Lunate in November 2026, and Arada Capital was announced in July 2026 with a USD 5 billion target. The projects remain subject to due diligence, a commercial agreement and approvals, and the details have not been disclosed yet.
Source: Gulf News (WAM).
FAQ
What did Arada Capital and Alya sign on 12 November 2026?
They signed a memorandum of understanding to set up a development and co-investment partnership for premium residential and mixed-use projects in the UAE and Saudi Arabia. It is an MoU, not a final deal. The first two residential projects have an anticipated combined gross development value of about AED 6 billion.
Where will the first Arada and Alya projects be?
The opportunities being explored are in Downtown Dubai and on Yas Island in Abu Dhabi. Both remain subject to due diligence, a commercial agreement and the necessary approvals. Plots, unit numbers, prices and launch dates have not been disclosed.
Who owns Alya?
Alya is backed by Brookfield, a global alternative asset manager with over USD 1 trillion of assets under management, and Lunate, an Abu Dhabi investment firm with more than USD 125 billion. Alya has its regional headquarters in DIFC, is regulated by the DFSA and led by CEO Otto Dreyer.
What is Arada Capital?
Arada Capital is the funds management platform of the Arada group, announced on 6 July 2026 and based in ADGM. It has in-principle approval from the FSRA and targets USD 5 billion of assets under management within four years after the fund is established. It is chaired by HRH Prince Khaled bin Alwaleed bin Talal and led by CEO Moustafa Fahour.
