Aldar and Mubadala form major retail venture

Aldar Properties and Mubadala Investment Company have completed a strategic joint venture that brings together two of Abu Dhabi’s most prominent retail destinations into a single platform valued at about AED 10 billion, marking one of the emirate’s largest consolidations in the retail real estate segment. The transaction combines Yas Mall and The Galleria Luxury Collection under a unified ownership and management structure, with Aldar appointed as platform manager.

The new vehicle pools income-generating assets with strong occupancy and stable footfall, reflecting a shared view that prime, experience-led retail remains resilient despite global shifts in consumer behaviour and the steady growth of e-commerce. Aldar has contributed Yas Mall, one of the region’s largest shopping centres by gross leasable area, while Mubadala has added The Galleria Luxury Collection, the high-end retail component of The Galleria on Al Maryah Island. Together, the assets form a consolidated portfolio anchored by leisure, dining and luxury retail offerings.

The structure of the venture places operational responsibility with Aldar, the emirate’s largest developer by assets, while Mubadala, Abu Dhabi’s sovereign investor, retains a strategic stake aligned with its broader mandate to generate long-term, risk-adjusted returns. Executives involved in the transaction have framed the platform as a means of unlocking efficiencies across leasing, marketing and capital allocation, while preserving the distinct positioning of each destination.

Retail has been an area of renewed focus for regional developers as population growth, tourism flows and large-scale events support demand for physical destinations that offer more than transactional shopping. Yas Mall benefits from its location on Yas Island, adjacent to major attractions such as theme parks, hotels and entertainment venues, which drive consistent visitor numbers throughout the year. The Galleria Luxury Collection, by contrast, is positioned as a premium shopping address serving residents, business travellers and affluent tourists visiting Al Maryah Island, Abu Dhabi’s financial free zone.

By combining these assets, the partners aim to create scale without diluting brand identity. Industry analysts note that larger platforms can negotiate more effectively with international retailers, secure flagship concepts and spread operating costs across multiple properties. The arrangement also provides a clearer pathway for future growth, including selective asset acquisitions, redevelopment opportunities and potential capital market transactions should the partners choose to list or partially monetise the platform at a later stage.

The joint venture arrives at a time when retail strategies in the Gulf are increasingly shaped by mixed-use development and experiential offerings. Shopping centres are being repositioned as social and lifestyle hubs, integrating food and beverage, entertainment and community spaces to lengthen dwell time and support tenant sales. Both Yas Mall and The Galleria Luxury Collection have invested in this model, hosting high-profile events, curated dining concepts and experiential activations that align with Abu Dhabi’s wider tourism and economic diversification agenda.

From a financial perspective, the combined gross asset value of about AED 10 billion places the platform among the most significant retail portfolios in the region. Stable occupancy levels and diversified tenant mixes are expected to support predictable cash flows, an attribute that appeals to long-term institutional capital. Aldar’s management role also allows it to deepen recurring revenue streams, complementing its development pipeline across residential, commercial and mixed-use projects.

For Mubadala, the transaction represents a continuation of its approach to partnering with sector specialists while maintaining exposure to strategic domestic assets. The sovereign investor has increasingly favoured co-investment structures that balance control with operational expertise, particularly in real estate segments where active management can materially influence returns.

Market participants see the venture as indicative of a broader trend toward consolidation among high-quality retail assets in the Gulf. As developers and investors reassess portfolios, prime malls with strong catchment areas and integrated leisure offerings are being differentiated from secondary assets facing pressure from oversupply or weaker footfall. The Aldar-Mubadala platform sits firmly in the former category, underpinned by locations that benefit from government-backed infrastructure investment and sustained urban growth.