Text size:

  • Small
  • Normal
  • Large
The name of Abu Dhabi's second biggest developer Sorouh will disappear after its merger with Aldar. Jaime Puebla & Delores Johnson / The National
The name of Abu Dhabi's second biggest developer Sorouh will disappear after its merger with Aldar. Jaime Puebla & Delores Johnson / The National

What's in a name? Nothing for Sorouh says Aldar after mega-merger

Aldar will drop the Sorouh name following the US$15bn merger of the two companies that is set to complete by the end of the month. The two firms have reshaped Abu Dhabi's skyline.

Aldar will drop the Sorouh name following the US$15 billion merger of the two companies that is set to be completed by the end of the month.

The action represents the start of a new life for the two companies that have reshaped the Abu Dhabi skyline over the past eight years with a string of major housing schemes, office blocks and shopping centres.

The disclosure was made in a joint statement posted on the Abu Dhabi Securities Exchange yesterday.

"Aldar and Sorouh have now applied for approval of the proposed merger and certain related matters from the Abu Dhabi Executive Council," the companies said in the filing.

Once that happens, they will apply for a resolution from the Minister of Economy to declare the merger effective. That is expected to take place any time between Wednesday and June 30.

Aldar and Sorouh have been behind some of the biggest property developments in the capital. Aldar built the Formula One Yas Marina Circuit and Central Market developments, while Sorouh has spearheaded projects such as Reem Island's Sun and Sky Towers.

Both companies were hard hit by the 2008 global financial crisis and ensuing property crash that forced them to cut jobs and delay some projects.

The merger comes at a crucial time for the Abu Dhabi property industry, which slowed dramatically in the wake of the crisis but which is now witnessing significant development activity, helped by increasing levels of government infrastructure spending.

"Abu Dhabi may not see a full recovery in 2013 but the Government is taking the right steps for a sustainable recovery," wrote Craig Plumb, the regional head of research for Jones Lang La Salle in the broker's first-quarter report on the Abu Dhabi property market. "Recent capital injections into infrastructure will boost the demand for real estate in the longer term, as will requirements for government employees to live in the emirate," said Mr Plumb.

From as early as next week, both companies will be known as Aldar Properties, rather than Aldar Sorouh Properties that had been their working name ahead of the proposed merger.



Back to the top

More articles

Editor's Picks

 Would you like it in blue? An Afghan shopkeeper shows a burqa to a customer at a bazaar in Herat. (Aref Karimi / AFP /  April 13, 2014)

In pictures: Best business images for the week to April 24, 2014

Here are some of the best business images for the week to April 24, 2014.

 That's asking a lot: this four-bedroom duplex penthouse apartment  at Marina Residence in Dubai is for sale with an asking price of Dh15.7 million. (Courtesy Better Homes / April 2014)

Palm Jumeirah penthouse listed for Dh15.7 million

A four-bedroom duplex penthouse in Marina Residence 3 on Dubai's Palm Jumeirah is on the market for Dh15.7 million.

 Room with a view from one of the 21 duplex penthouses located in the Gate Towers sky-bridge. The sports courts and swimming pools can be seen below. Courtesy Alda

In pictures: Aldar’s Gate Towers Penthouse Collection on Reem Island

Aldar launched its Gate Towers Penthouse Collection at Cityscape Abu Dhabi. The launch features 21 penthouses spanning the skybridge, with each having a private indoor pool and incredible views.

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National