Abu Dhabi is set for a significant urban expansion following a landmark agreement between Aldar and the Department of Municipalities and Transport (DMT). The public-private partnership aims to develop over 20 million square metres of land across five strategic sites. This collaboration focuses on creating integrated communities that feature residential, retail and educational facilities.

The project was officially launched during the Abu Dhabi Infrastructure Summit 2026. High-ranking officials including His Excellency Suhail Mohamed Al Mazrouei and His Excellency Mohammed Ali Al Shorafa attended the event. The deal involves DMT providing the land while Aldar acts as the master developer. This model seeks to align economic growth with housing accessibility.

A major part of the plan includes expanding the Value Housing Programme. This initiative provides high-quality and affordable rental options for residents. New developments in Muwaylih, Mussafah, Al Zahiya and Al Faya will offer a mix of lifestyle homes and affordable units. These neighbourhoods are designed to be walkable with plenty of green spaces and schools.

Talal Al Dhiyebi, Group Chief Executive Officer of Aldar, said: “This strategic partnership marks an important step in shaping Abu Dhabi’s next phase of urban growth. As the emirate continues to attract residents, businesses, and investment, there is a growing need for thoughtfully planned destinations that expand housing choice across multiple market segments while enhancing quality of life. Through this collaboration with DMT, we will shape communities that will meet evolving market needs and support the emirate’s long-term development ambitions. The scale and breadth of these projects reflect Aldar’s strong conviction in the long-term fundamentals of Abu Dhabi’s real estate market and our continued confidence in the emirate’s economic growth trajectory.”

The partnership also includes the first development of Al Mihsinah Island. This will become a new waterfront destination blending coastal nature with modern living. Furthermore, the agreement builds on previous plans to deliver 9,000 rental units in Mohamed Bin Zayed City and Baniyas.

His Excellency Abdulla Mohamed Al Blooshi, Director General of the Urban Planning and Permits Centre at the Department of Municipalities and Transport said: “This partnership with Aldar represents a new model for Abu Dhabi’s urban development, one that brings together strategic master planning, private-sector execution capability, and government oversight to deliver transformational growth. By collaborating with a trusted partner like Aldar, DMT can accelerate the delivery of the housing and mixed-use communities Abu Dhabi needs, while maintaining the highest standards of planning, sustainability, and quality of life.”