Dubai: Private sector investors will get more opportunities to develop land owned by Abu Dhabi Government agencies. This follows a move by Abu Dhabi Investment Office add more features to the “Musataha” agreement.
“Long-term investment decisions that stretch decades into the future require certainty and clarity from the outset,” said Mohammed Ali Al Shorafa, Chairman of Abu Dhabi Department of Economic Development.
“ADIO is working with partners across the government to maximise the benefits of Musataha agreements and ensure they continue to play an important role in facilitating strategic investments into the economy.”
Musataha rights enables the private sector to develop land owned by government agencies and benefit from projects developed on it.
More leeway on pricing
The ADIO additions to the Musataha agreement include implementing a “highly competitive pricing model with flexible terms for companies looking to grow in Abu Dhabi”.
These agreements can be applied to land use in any sector. ADIO is currently working with the Abu Dhabi Agriculture and Food Safety Authority on a Dh1 billion pipeline of investments in food production and processing.
Each project will utilise latest farming methods and can “quickly” move to commercial production.
“ADIO is here to ensure that Musataha agreements deliver value for investors while providing reasonable benefits to land owners," said Dr. Tariq Bin Hendi, Director-General of ADIO.
"We have taken steps to add flexibility and efficiency to the form of Musataha agreement to be entered into between a private sector participant and government, to increase investor confidence. By unlocking the potential of our land, Abu Dhabi is providing investors and companies with increased opportunities to bring bold projects to life."