Afkar Financial Property Investments, a subsidiary of the Abu Dhabi-based Emirates Stallions Group (ESG), has entered into an AED540 million (US$147 million), 33-year Musataha agreement with Spox Investments, a leading UAE real estate investment company.
Under the Musataha agreement, Afkar will lease the long-term development rights to Spox, while retaining full ownership of the land.
A Musataha agreement is a real property right in the UAE granting a party the right to develop, use, and profit from land owned by another entity for a fixed term, usually ranging from 10 to 50 years. It allows for construction.
Musataha boosts Abu Dhabi growth
The agreement covers 16 prime land plots owned by Afkar to be developed into high-quality projects that support surrounding communities and enhance local infrastructure.
This includes plots in strategically located key development corridors of Abu Dhabi, like Shahama, Shamkha, Mohammed Bin Zayed City, and Shakhbout City.
Abdulla Al Qasimi, CEO & Managing Director of Afkar, said: “This Musataha agreement marks a significant milestone for Afkar, allowing us to generate stable, long-term income from our land portfolio while maintaining ownership.
“It also reflects our commitment to sustainable value creation and responsible asset management that contributes to Abu Dhabi’s continued development.”
Mohamed Juma Al Shamsi, Chairman of Spox Investments, added: “We are pleased to enter into this long-term agreement with Afkar. The planned developments will enhance local communities and support Abu Dhabi’s growth objectives through modern and sustainable real estate projects.”
The transaction highlights Emirates Stallion Group’s focus on converting underutilised assets into income-generating investments.
Matar Suhail Al Yabhouni Al Dhaheri, Chairman of ESG, said: “This agreement clearly reflects ESG’s strategy to optimise its diversified asset base, generate sustainable recurring income stream, and deliver enduring value for shareholders.
“Afkar’s initiative to utilise idle lands in a financially efficient and future-focused way reinforces our Group’s commitment to resilient, long-term growth.”
