The two largest property developers in Dubai and Abu Dhabi are joining forces to pursue local and international real estate projects worth 30 billion dirhams ($8.2 billion).
Emaar Properties PJSC, the developer of the world’s tallest tower, and Abu Dhabi’s Aldar Properties PJSC signed the partnership agreement, Dubai’s Media Office said in a tweet. The venture will initially start lifestyle developments on Al Saadiyat Island in Abu Dhabi and Emaar Beachfront in Dubai.
Developers in the U.A.E. are grappling with a tough local market as demand for property declines, pushing down values and rents. Dubai has seen predictions of a rebound miss the mark again and again over the last two years. Abu Dhabi’s real estate market hasn’t fared any better.
While new, the partnership isn’t the first instance of cooperation between developers in Dubai and its larger and richer neighbor Abu Dhabi. Emaar Chairman Mohamed Alabbar is leading Abu Dhabi-backed Eagle Hills, which is developing projects in countries such as Serbia, Bahrain and Nigeria.
The start of common projects between Dubai and Abu Dhabi “will help strengthen our economy globally,” the United Arab Emirates’ Prime Minister and Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum said in a tweet.