UAE-based Arada launched a fund management arm, bringing in outside investors for the first time to help finance its real estate developments, with the aim of having $5 billion in assets in four years.
Arada Capital will be based in the Abu Dhabi financial center and chaired by Prince Khaled bin Alwaleed, the son of one of Saudi Arabia’s most prominent investors, Prince Alwaleed bin Talal. It will initially focus on real estate in the Gulf and later look at infrastructure and other private market investments.
The fund will give Arada a new source of capital to fund its ambitions at a time when lenders and investors have become more cautious about Gulf real estate in the wake of the Iran war. Since it was established in 2017, Arada has announced more than 11 projects across Australia, the UAE, and the UK, and says its project pipeline is worth 130 billion dirhams ($35.4 billion).