Strong Foundations: Ahmed Alkhoshaibi, Group CEO, Arada Building on seven years of Arada Group's exponential growth, its Group CEO Ahmed Alkhoshaibi details the UAE master developer's global agenda.

"We've never been a short-term company–that's the secret to our success," says Ahmed Alkhoshaibi.

The founding Group Chief Executive of Arada, an affable Australian national who leads what is now one of the UAE's largest master developers, is sitting comfortably in an office whose walls are covered with architectural plans and renders, with 3D scale models on every desk and surface. On one side of the office, the view stretches away over the runways of Dubai's airport to the distant towers of Sharjah, where Arada first began its operations. And on the other side, there's an even more impressive view over the elbow of Dubai Creek, with the Sheikh Zayed Road skyline looming on the horizon.

When questioned as to whether these two views reflect the company's past and future, Alkhoshaibi smiles. "Arada was born in Sharjah, but we've always been a UAE company. We wanted to focus on Sharjah and transform the market there, but it was never our plan just to stay in one Emirate. Before Arada came, there was a certain perception of the Sharjah market, that there was more demand for afford- ability rather than quality, but the fact that we are selling villas for AED10 million in Sharjah proves that there is definitely a premium there. And having transformed that market, it was time to go to Dubai."

During the course of this rare sit-down interview, the conversation drifts over a wide range of topics, including the ethos behind community creation, trees –undeniably one of Alkhoshaibi's favourite subjects– the importance of retaining a startup mentality, and, of course, expansion and the future. Arada has certainly grown exponentially in the seven years since the company was founded.

From small beginnings with the launch of the Nasma Residences villa community in early 2017, Arada now oversees a project portfolio valued at over AED60 billion, including Sharjah's largest ever mixed-used community, Aljada, the UAE's first forested development, Masaar, and the ultra-luxury Armani Beach Residences at Palm Jumeirah in Dubai. Arada has now completed over 9,000 homes (with another 21,000 in the pipeline), has a workforce of over 1,000, and is the youngest private company in the UAE to have obtained ratings, and completed successful issuances on the global bond markets (via a debut US$500 million sukuk in 2022, and more recently a $400 million deal in June this year).

Madar, the family entertainment and retail district at Aljada, an Arada project. Source: Arada

All this has been shepherded since inception by Alkhoshaibi, under the watchful eye of the company's Chairman and Vice Chairman, Sharjah's Sheikh Sultan bin Ahmed Al Qasimi and Saudi Arabia's Prince Khaled bin Alwaleed bin Talal, respectively. Not bad for a company that started out with little more than a core team of just 12 professionals as well as a highly entrepreneurial mindset.

So, what's really been the secret to Arada's rapid growth? Alkhoshaibi is unequivocal. "We had a vision that was clear from day one," he points out. "We believe that when people and spaces connect, great things happen, and we create spaces that allow people to enjoy happier, healthier, and more meaningful lives. That's our compass, so when we design our communities, we have principles we follow to make sure we stay true to our purpose."

Perhaps the most notable principle, which is immediately obvious when entering any Arada community, is the landscaping. At least 50% of every master-planned development delivered by the company is made up of open space, the majority of which is covered by dense greenery, including trees and shrubs. The most famous example of this is Masaar, the UAE's first "forested" community, which includes a "green spine" of 70,000 trees, part of which has already been completed. "We always give hierarchy to nature," Alkhoshaibi says. "So, we design the nature aspect first, the tree lines and so on, and then we do the infrastructure and the buildings. Other developers will do infrastructure and the buildings first, and then give over whatever is left for trees and plants, but we prioritize our trees."

"Keeping that open space level at 50% is in itself discipline," he continues. "You have the finance department saying that we need to make more money and squeeze in more homes, but that's what I mean by short-term thinking. We invest in open space, and we activate that space, allowing people to walk more, play more sports, and be more social. A great example of that is the park at Nasma Residences, which is over half a million square feet in size. It's one of the nicest parks in Sharjah, it's always full, and this was done by a private developer using its own budget–this is just one of the ways we can support the government."

HH Sheikh Sultan bin Mohammed Al Qasimi, member of the Federal Supreme Council of the UAE and Ruler of Sharjah, visiting Aljada in 2023. Source: Arada

However, the landscaping is just one of the Arada principles of community building. Others include the need for great architecture and design, as evidenced by the inclusion of luminaries such as Japan's Tadao Ando and Zaha Hadid Architects in the design of its projects– not to mention the 40 in-house architects Arada employs in its design department.

Another feature is the importance of world-class facilities, whether it's the many schools, hotels, office buildings, shops, restaurants, and sports amenities that help to make up the colossal Aljada master plan, or the AED100 million invested to create a continuous looped professional woodland cycling circuit in Masaar. Most of these amenities are available to residents and visitors even before the first homes have been completed, helping to create a destination, encouraging people to get outside, and adding value to the project at the earliest possible point.

Other key considerations include careful stewardship of the local environment. Alkhoshaibi says that all landscaping at Arada communities is fed by treated wastewater from onsite plants, and all homes contain extensive smart features, as well as Arada Care, the division set up specifically to look after owners and residents after the sales process has been completed.

The company has also made waves globally with its Home for a Home campaign–a first-of-its-kind initiative that has seen Arada donate homes for vulnerable families in Kenya and Syria for every home sold in its communities during Ramadan over the last three years. "This approach comes from our founders–it's in their DNA," says Alkhoshaibi. "They put people first, and they are extremely active and healthy. This ethos has to come from the top; I have similar values myself, and that's how we came up with these principles. In fact, it's not just corporate strategy, it's something we live by. That's one of the core reasons for our growth."

As Group CEO of Arada, Ahmed Alkhoshaibi leads what is now one of the UAE's largest master developers. Source: Arada

"Developers will be fine with short-term thinking in a boom market, as people will buy anything," he continues. "But our long-term strategy does convert to financial sense pretty quickly. Investing in the public realm does cost money, but it beautifies the area, and the asset appreciates. At Aljada in our first phase, we were selling at AED700 per square foot, and now, we're at AED1,300. Why? Because people want to live in Aljada. And it's not because of the homes, nice as they are–it's because of the community. And that's why I predict you'll see that figure double to AED2,600 over the next five years."

This long-term thinking has clearly paid off, with sales jumping steadily year on year, culminating with a 100% growth in the total value of property sold in 2023 compared to 2022, to AED7 billion, boosted by Arada's entry into Dubai via the Jouri Hills at Jumeirah Golf Estates community, and the ultra-luxury tie-up with Armani on the Palm Jumeirah. Two more Dubai projects are imminent, the Group CEO adds, indicating that both will again target the luxury market and will be based in Dubai Harbour and Dubai International Financial Centre, respectively.

But a key plank of Arada's approach has also been to diversify its revenue streams, both in terms of recurring revenue through verticals such as retail leasing, which has benefited from the ever-increasing number of shops and F&B outlets, which saw over five million visits last year alone. The firm is also concentrating on education, with one K-12 international school open and two more on the drawing board, and it has additionally launched a series of complementary brands.

These include Wellfit, now the UAE's fastest growing fitness brand, with three large-scale fitness centres in Jumeirah Village Circle, Meydan, and Aljada, and new venues on the way in more locations across the UAE and beyond. In the process, Wellfit has become a money-spinner in its own right, with over 14,000 memberships won so far, and some estimates suggesting the company is on track to reach a valuation of up to AED1 billion over the next seven years. "These are incredible spaces that not only feature state-of- the-art equipment, but have plenty to do for the kids," Alkhoshaibi says. "It's one of the brands that really helps our destinations–you put a Wellfit in, and it activates the space."

Nasma Residences, an Arada project. Source: Arada.

Alongside Wellfit, Arada has also launched Manbat, a social impact partnership with the UAE Ministry of Climate Change and Environment that focuses on connecting Emirati farmers with local consumers; Zad, a food truck park; Hungry Wolves, a healthy eating brand; Artal, an Emirati fashion store; and Yalla, an e-mobility solution for the company's communities. In addition, Arada signed its first master franchise agreement with Boost Juice, a popular brand from Alkhoshaibi's native Australia, which now has six branches already open across Dubai, Sharjah, and Abu Dhabi, with another 20 to follow.

In addition, Arada has also recently announced the creation of a new hospitality and entertainment division, headed by industry veteran Amit Arora, whose mandate is to ensure that 20% of the company's revenues derive from this division in five years' time. As for geographical expansion, Alkhoshaibi says he has always been clear about Arada's strategic direction. "There was always a plan to launch in Sharjah, establish a dominant position there, and then shift to Dubai. From Dubai, we're looking to expand into Saudi Arabia, and from there, internationally–so, some of the markets we have mentioned previously include the UK, Italy, and Australia. We don't rush–we took a leadership position in Sharjah, where we now have about 50% of the off-plan market, and it took time for us to find the right locations to be able to launch in Dubai."

But it's also clear that the Group CEO feels that there are no limits to how far Arada can go, given the structure and procedures he has put in place, hinting that international expansion may be on the cards even before the end of this year. "The team that we're building, the ideas that we're creating, and the systems that we're implementing can benefit not just the UAE, but almost any country around the world," he concludes. "We don't want to be known for just being successful in one Emirate or one country. You can apply our set of rules and principles everywhere, and that's why we're so confident."

Arada by the numbers

• 150,000 - Number of trees in Arada's nursery in Aljada, one of the largest of its type in the UAE.
• 50% - Arada's share of the off-plan market in Sharjah
• 346 - Number of women working at Arada (over a third of the workforce)
• 14,000 - Number of homes sold by Arada since foundation
• AED35 billion - Total value of Aljada, Sharjah's largest ever project
• 5.3 million - Visitors to Aljada in 2023

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