TARAF and Mubadala explore 5.4 million sq ft Al Reem Island waterfront development

TARAF and Mubadala Investment Company have signed a memorandum of understanding to explore a major mixed-use waterfront development on Al Reem Island, adding another large-scale proposal to Abu Dhabi’s real estate and urban-growth pipeline.

Emirates News Agency reported on 1 October 2026 that TARAF, the real estate division of UAE-headquartered Yas Holding, and Mubadala will assess and progress a proposed development spanning 10 plots across approximately 655,000 square feet of land. The total gross floor area is approximately 5.4 million square feet.

The companies signed the agreement during LIVEX 2026. Mubadala’s own announcement said the MoU establishes a framework to explore a waterfront development focused on connectivity, livability and the public realm.

The proposed masterplan would bring together residential, commercial, retail and food and beverage offerings. TARAF’s plan includes a range of one- to four-bedroom apartments and penthouses, along with public and commercial spaces and an integrated retail and F&B component.

The project is still at MoU stage, which means no construction timetable, investment value, unit count or launch pricing has been disclosed in the official announcements. That caveat is important for investors and buyers: the agreement signals intent and planning activity, not a completed development commitment.

Even so, the proposal is commercially significant because of its scale and location. Al Reem Island is one of Abu Dhabi’s established residential and economic waterfront districts, with demand driven by residents, employers, investors and proximity to the capital’s business and lifestyle infrastructure. A 5.4 million sq ft gross floor area plan would be material for the island’s next development cycle if it advances.

The public-realm language in the announcement also reflects a broader trend in UAE real estate: developers and investors are increasingly presenting major projects not simply as towers, but as integrated districts with walkability, community amenities, ground-level retail and waterfront access. That approach is designed to support long-term occupancy, investor confidence and quality-of-life positioning.

For Abu Dhabi, the MoU aligns with the emirate’s effort to link real estate development with liveability and long-term capital attraction. For Mubadala, the proposed project sits within a strategy of creating value in domestic assets while supporting economic diversification. For TARAF and Yas Holding, it would add a prominent Abu Dhabi waterfront scheme to a portfolio focused on design-led residential and mixed-use communities.

The market will now watch for the next milestones: masterplan approvals, phasing, financing structure, construction partners and sales or leasing plans. Until those are disclosed, the story is best read as a major pipeline signal rather than a ready-to-launch project.