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Arabian Post
28-04-2025
- Business
- Arabian Post
Promises Renewed as Arabian Hills Estate Rises Over Abandoned Emirati Project
A new chapter is unfolding in the heart of the UAE's real estate landscape as Arabian Hills Estate emerges to replace a once highly anticipated but ultimately undelivered development initially sold by Wahat Al Zaweya Holding PJSC. Positioned near Al Ain, on land just across the Abu Dhabi border, this expansive community of villa and mansion plots is being marketed as a symbol of luxury and renewal, aiming to repair the reputational damage left behind by its predecessor. Arabian Hills Estate was formally launched last year and is being promoted with ambitious promises: lush gardens, a crystal-clear swimmable lagoon, an equestrian centre, high-end shopping malls, world-class resorts, and what the developers describe as 'extraordinary experiences right on your doorstep'. Plot sizes vary dramatically, ranging from 12,000 to 132,000 square feet, and sales material sets a proposed completion window between February and March 2027, extending to the fourth quarter of that year for some sections. The collapse of the earlier project under Wahat Al Zaweya Holding PJSC continues to cast a long shadow over the launch of Arabian Hills Estate. Originally marketed exclusively to Emirati nationals, the earlier development saw significant investor interest, with many customers paying large sums upfront, only to be left without properties delivered. Disillusioned investors pursued litigation in a bid to recover their money, with mixed outcomes. Some succeeded through court orders or negotiated settlements, while others still cling to the hope that the new project will honour their original investments. The company behind Arabian Hills Estate, largely separate from Wahat Al Zaweya's original corporate structure, has framed its offering as a fresh opportunity rather than a continuation of past mistakes. While both projects are geographically linked, representatives of the new estate emphasise that they have different leadership and management structures, although direct ties in terms of land ownership and prior customer relations remain murky. Real estate agents have seized on the marketing narrative, with some branding Arabian Hills Estate as the 'Beverly Hills of Dubai' — despite its actual location within the Al Ain region of Abu Dhabi emirate. Industry analysts point to the branding as an intentional strategy to leverage Dubai's internationally recognised image of glamour and high-end living, even if the project's site technically lies outside its municipal boundaries. Legal experts monitoring the fallout from the Wahat Al Zaweya episode warn that prospective buyers should exercise caution. According to real estate attorney Feras Al Sadek, 'The new project may seem attractive, but buyers need to thoroughly understand the legal distinctions between the old development and Arabian Hills Estate. Due diligence is more important than ever when previous claims on the land still exist.' Al Sadek noted that although Arabian Hills Estate is a new entity on paper, historical entanglements could complicate ownership rights if not fully resolved. For its part, Arabian Hills Estate's promotional materials assert that all land titles are clear and that the project is backed by escrow accounts regulated under UAE real estate laws to ensure better protection for investors. The developer's spokesperson confirmed that the plots are being sold under updated frameworks in compliance with recent Abu Dhabi real estate regulations aimed at safeguarding off-plan buyers. Market response has been cautiously optimistic, particularly among end-users and investors looking for early-mover advantage into what is still a developing suburban luxury market. Prices for plots have been reported to start at AED 900,000 and can rise significantly depending on size and location within the estate. Brokers highlight that demand for large residential plots is rising as wealthy buyers seek private, custom-built homes away from city congestion, especially in the post-pandemic environment where space and bespoke amenities have gained premium value. However, the ghosts of the failed Wahat Al Zaweya project are not easily exorcised. A number of individuals who invested years ago are wary of the promises made by Arabian Hills Estate. One investor, Saif Al Mheiri, who is still embroiled in a legal battle to reclaim funds tied to the old project, expressed scepticism: 'We were given so many promises the first time. Until I see villas built and families moving in, I will not believe anything.' Adding to the complexity, industry observers note that the UAE real estate market has evolved substantially since the first project was launched. Regulatory oversight has tightened, and buyers are generally more informed about their rights. Nevertheless, with thousands of units and plots under development across the UAE, the risk of delays or under-delivery remains a persistent concern for off-plan property investors. Arabian Hills Estate's projected handover timeline of early to late 2027 places it in a competitive field of upcoming developments in the UAE, all aiming to capture demand from both domestic and international buyers. Yet, achieving the luxurious vision promised will require overcoming significant logistical and reputational hurdles. The developers are banking on a combination of improved infrastructure, the allure of countryside living paired with city-style amenities, and enhanced legal protections to convince a market that has learned from past disappointments.
Zawya
28-04-2025
- Business
- Zawya
Arabian Hills Estate replaces stalled Wahat Al Zaweya development project
A development once sold exclusively to Emirati nationals by an Abu Dhabi–listed company is being replaced by a new community of villa and mansion plots called Arabian Hills Estate. Customers who paid the developer, Wahat Al Zaweya Holding PJSC, never saw the project handed over and many have pursued litigation to secure their money back, but others still hold out hope of receiving their properties. Formally launched last year, Arabian Hills Estate is being promoted as offering lush gardens, a swimmable lagoon, an equestrian centre, shopping malls, resorts and 'extraordinary experiences right on your doorstep'. Plots ranging from 12,000 to 132,000 are being sold with a proposed completion date of February or March 2027 or Q4 2027. It has been dubbed the 'Beverly Hills of Dubai' by one real-estate broker, though it falls on land just across the Abu Dhabi border in Al Ain. Before Arabian Hills Estate, another development, the 'paused' Wahat Al Zaweya (WaZ), was marketed as 'a city filled with all the elements of modern luxury, designed for a distinguished lifestyle in line with the UAE's goal of making its people and residents the happiest in the world.' Up to 2,500 plots were sold, but none were delivered, and many buyers eventually resorted to a special judicial body to get their money back. Plots at Arabian Hills Estate are available on a five-year payment plan at AED 140 or AED 155 per but those who can raise the money within two or three working days can pay between AED 55 and AED 60 per up front, starting at around AED 760,000 ($207,000) for a plot, two real-estate agents told Zawya. Industry experts said such a discount, which amounts to more than 60%, is unusual, bearing in mind developers' margins. Discounts for cash up front are usually 10–12%, with the largest otherwise in the UAE at around 50%. While plots are listed on property portals on a 50/50 payment plan, agents are offering prospective buyers substantial discounts over phone calls and WhatsApp messages if they can raise and pay the full amount of money within a week. Wahat Al Zaweya PJSC's status One WaZ buyer said he agreed to pay around AED 800,000 on a payment plan for a 14,000 plot in 2014 and wrote post-dated cheques. The two-year handover date passed and no plot was delivered. In 2018, while there was no sign of the development's completion, Wahat Al Zaweya Holding PJSC was listed as a joint stock company on the Abu Dhabi Securities Exchange (ADX). The share capital of the company is 2.3 billion shares according to ADX data, with the share price closing at AED 4.07 when it last traded. In 2019, the WaZ buyer was given a bigger plot of 17,000 to compensate him for the delay. Do not stop paying your instalments, he was told, or you will lose everything. He last heard from the developer in 2021 when he visited the site, but was refused entry due to COVID-19 infection risk. The company, which rebranded to Anan Investment Holding PJSC in 2021, stopped cashing his cheques in 2022, by which time he had paid AED 600,000. Data from Dari, the Abu Dhabi government–backed real-estate portal, shows Wahat Al Zaweya listed as a project but marked as 0% complete. There are two listings named Arabian Hills. The first is Arabian Hills Estate, listed as a plot project, 12.5% complete, registered in 2024, and developed by Arabian Hills Investment and Real Estate. A construction report shows 0.64% progress made between two site visits carried out in January and February, and photographs show work being carried out at the site. The second, named simply Arabian Hills, also by the same developer, was registered on the same day and marked 55.89% complete, with progress of 0.25% between site visits in January and February. Zawya reached out to Abu Dhabi Real Estate Centre, which regulates the sector in the emirate, about the Arabian Hills Estate project, but a spokesperson said the office is unable to comment at present. Audited financial results for FY 2019 for the company, then known as Wahat Al Zaweya Holding PJCSC, show material doubts about its ability to continue as a going concern and that it was subject to legal cases from buyers due to delayed handovers. One former insider said the project was large and complicated and financial constraints were compounded when legal cases and costs piled up. By the end of 2021, accumulated losses reached AED 250 million, and current liabilities exceeded assets by AED 4 billion. The company's stock has not traded since August 2022 and is on 'temporary' suspension due to failure to file financial results since March 2022. When asked about the company's status, a statement from ADX said listed companies are required to comply with both ADX and the UAE's Securities and Commodities Authority's (SCA) requirements and listing standards. The statement added ADX is not in a position to comment on behalf of its listed companies, and referred Zawya to its website or the company's investor relations unit. Zawya contacted Anan and Arabian Hills Estate's development partners Core International Holding, ARA Real Estate Development and property development manager DECA Properties, but received no response. Dubai-listed Drake & Scull (DSI), which emerged from restructuring last year, was in the running for WaZ contracts and announced earlier this year that it was working on Arabian Hills Estate. The company told Zawya that Wahat Al Zaweya and Arabian Hills are 'similar in location and scope' but that the newer development is on a 'stronger financial footing' than WaZ. Network behind Wahat Al Zaweya and Arabian Hills Anan Investment Holding PJSC has six significant shareholders according to ADX data. The largest is A Group of Tabarak Commercial Investment, followed by Royal Majestic SAK, Dubai-listed Ajman Bank, and Tabarak Investment, another Tabarak entity. One of Anan's prominent shareholders is single-person entity Al Sawari Real Estate Investment, which is also a shareholder in BHM Capital, a Dubai-listed brokerage and financial services firm. BHM Capital was previously planning to acquire Al Waqan Capital Investment, owned by Core International, but this is postponed while the company carries out a capital increase. Special judicial dispute body resolves some cases In 2021, a special judicial dispute body was created to settle claims from WaZ buyers as well as those from another paused project, Wahat Yas, which was launched in 2018. Three years later, 802 investors received refunds worth a total of AED 702 million ($191 million). As of last year, a second phase of the judicial body was still working with 630 buyers who had lawsuits filed before the start of the first phase of settlement, giving them the option to continue in the project after it is re-offered according to current real estate market conditions. Sally Kotb, a partner at law firm Baker McKenzie, said class actions are not expressly applied in the UAE, but a special regime is set up to deal with claims by investors against developers through the establishment of specialised judicial tribunals. The WaZ buyer who spoke to Zawya is considering launching his own legal case this year. (Reporting by Imogen Lillywhite; editing by Seban Scaria)
