More consolidation seen in Abu Dhabi after Aldar, Sorouh merger
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More consolidation seen in Abu Dhabi after Aldar, Sorouh merger

More consolidation seen in Abu Dhabi after Aldar, Sorouh merger

Analysts have said the state-backed merger of Abu Dhabi's two largest property developers is likely just the first step in a wider consolidation that will see projects and state entities merged in a bid to stabilise the real estate market, Reuters has reported. "The government took this bold step to consolidate supply" of new real estate projects, said David Dudley, head of the Abu Dhabi office for consultancy Jones Lang LaSalle, one of the advisors on the merger. "There may not be more mergers of companies, but we will see consolidation of government entities and also projects," he said. A range of state agencies and other state-linked bodies moved into property development in the past five to seven years. "Government entities that own land, but (for whom) developing properties is not their core business, will now not be supported by the financing system."

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