Developer Arada pivots to built-to-lease healthcare model with 800-bed expansion plan

UAE—UAE-based master developer Arada has announced plans to build an 800-bed healthcare network across the country as part of a broader strategy to diversify its income streams beyond residential real estate.

Group Chief Executive Officer Ahmed Alkhoshaibi confirmed that the initiative will require a total investment of AED 2 billion (US$544.5 million) and will be implemented in phases over the medium term.

The plan follows Arada’s acquisition of a controlling stake in Reem Hospital, marking the company’s entry into the healthcare sector as it expands its presence across non-residential industries.

Expansion of Reem Hospital and new UAE facilities

According to Alkhoshaibi, the investment covers both the acquisition costs of Reem Hospital and the development of three additional hospitals across the UAE.

The new facilities will operate under a built-to-lease model in partnership with healthcare operators, allowing Arada to retain asset ownership while leveraging external clinical expertise.

Initially, Reem Hospital will increase its capacity at its Abu Dhabi location on Reem Island from the existing 100 beds to 200 beds.

This expansion is intended to address rising demand in the capital’s healthcare sector while setting the foundation for further regional growth.

Subsequently, Arada plans to establish three new hospitals across key urban centres.

The first will be located within the company’s flagship Aljada development in Sharjah, followed by additional facilities in Dubai and Abu Dhabi.

Collectively, the network is expected to serve up to four million patients annually once fully operational.

Aljada at the Centre of integrated healthcare vision

The Sharjah facility will be embedded in Arada’s Aljada megaproject, one of the UAE’s largest mixed-use communities.

As of April 2026, state media reports indicated that more than 8,800 homes had already been completed within the AED 35 billion (US$9.5 billion) development, underscoring its rapid expansion as a residential and commercial hub.

Alkhoshaibi noted that integrating healthcare services into such large-scale developments strengthens Arada’s placemaking strategy, enabling residents to access essential services within the same ecosystem.

He added that the acquisition of Reem Hospital aligns with the company’s long-term vision of embedding world-class amenities directly into its communities.

Strengthening a diversified health and wellness portfolio

Arada has significantly expanded its footprint in health and wellness over the past year, positioning the sector as a core pillar of its diversification strategy.

The company recently introduced wellness-focused residential and hospitality brands, including Akala and Inaura, designed to integrate lifestyle and preventive healthcare concepts.

In parallel, Arada operates Formative, currently the UAE’s largest gym network by revenue.

The fitness platform is projected to grow to 100,000 members across 40 locations by the end of 2027, reflecting strong demand for wellness-oriented services in the region.

Alkhoshaibi said the acquisition of Reem Hospital strengthens Arada’s ambition to become the first regional master developer to offer a fully integrated health and wellness ecosystem, spanning hospitals, fitness, and lifestyle services.

 International growth and future outlook

Arada has also begun expanding beyond the UAE, with active interest in development opportunities in the United Kingdom and Australia.

This international push complements its domestic diversification strategy, reinforcing its transition from a residential developer into a multi-sector investment and infrastructure group operating across healthcare, lifestyle, industrial, and real estate markets.