Strictly Private & Confidential — Without Prejudice to MAG’s Rights
Memorandum of Understanding
Keturah™ Al Ain
The Sanctuary of Human Happiness
This Memorandum of Understanding (“MOU”) is issued by MAG Property Development (“MAG”). It is non-binding save in respect of provisions expressly identified as binding herein.
1. Executive Summary
Keturah Al Ain (the “Project”) is a 334-hectare ultra-low-density wellness and heritage development located in the Eastern Region of Al Ain, Emirate of Abu Dhabi, immediately adjacent to the Hafit and Hili UNESCO World Heritage Sites. The masterplan delivers 1,057,000 sqm of Gross Floor Area at a Gross FAR of 0.50, strictly within the UNESCO heritage height framework.
Delivery of the Project is structured in three sequential phases over approximately seven years, anchored by the Keturah™ brand and grounded in BlueZone longevity principles and the Qibla-aligned spatial heritage of Al Ain. Total estimated hard construction cost is AED 7.10 billion, with AED 370 million in fixed infrastructure CapEx and an AED 374 million contingency reserve — a total development cost, excluding land, of AED 8.55 billion. The Project targets a Project IRR of 18% and an equity multiple of 2.5x, supported by phased residential sales, hospitality operations, and recurring retail and community-management income.
2. About Keturah
Keturah™ is the luxury wellness brand and development platform of MAG Property Development, which is the issuing entity of this MOU. The brand develops integrated communities at the intersection of biological design science, regional heritage, and sustainable architecture. The Project is the brand’s most extensive horizontal expression to date — scaled for desert privacy, designed for human longevity, and positioned at the cultural heart of the United Arab Emirates.
3. Strategic Alignment
The Project advances Abu Dhabi Economic Vision 2030, the Al Ain UNESCO Master Plan, and the Emirate’s strategic shift toward heritage-led, low-density, wellness-anchored residential and tourism investment. Through strict low-rise compliance, the masterplan preserves the Al Ain skyline and the visual integrity of the Hafit and Hili heritage corridor, while contributing a diversified and sustainable economic asset to the Eastern Region.
4. Project Overview & Planning Parameters
- Project name Keturah™ Al Ain — The Sanctuary of Human Happiness
- Location Eastern Region, Al Ain, Emirate of Abu Dhabi, UAE
- Project type Ultra-low-density luxury residential and eco-sanctuary
- Total site area 334 hectares (3,340,000 sqm)
- Total GFA 1,057,000 sqm
- Residential homes ~750 single-storey homes on ~25,000 sq ft plots (Ph1 250 · Ph2 375 · Ph3 125)
- Gross FAR 0.50 · Net density ~3.7 units / hectare · Open-space ratio 20%
- Maximum height Low-rise (UNESCO Heritage Zone)
- Regulatory framework Al Ain Municipality Master Plan; DMT; UNESCO World Heritage protocols; ADREC off-plan registration under Abu Dhabi Law No. 3 of 2015
| Land Use | Land Area (sqm) | Plot FAR | GFA (sqm) |
|---|---|---|---|
| Residential | 2,004,000 | 0.50 | 1,002,000 |
| Hospitality & Wellness | 100,000 | 0.50 | 50,000 |
| Mixed-Use Village (Souq) | 10,000 | 0.50 | 5,000 |
| Infrastructure & Roads | 167,000 | — | — |
| Open Space & Preservation | 1,059,000 | — | — |
| TOTAL | 3,340,000 | 1,057,000 |
5. Design & Sustainability
The Project is rooted in Islamic spatial tradition and biological design science. The masterplan is organised on the Qibla axis, with low horizontal massing that preserves the Al Ain skyline and frames the surrounding heritage landscape. Architecture is delivered in a vernacular contemporary language using rammed earth, compressed earth blocks, local stone, and timber, with circadian-aligned orientation and natural ventilation embedded throughout.
Sustainability is engineered into every scale of the Project: a 40% reduction in cooling load through passive design, a 50% reduction in potable water use, 100% Treated Sewage Effluent irrigation, 80% native species planting, and a 90% construction waste-diversion target. A continuous Green Web of fifteen kilometres of shaded trails ensures every residence sits within a five-minute walk of nature. The Project commits to organic, chemical-free maintenance to protect the aquifer and the long-term ecological integrity of the site.
6. Financial Overview & Phasing
Total estimated hard construction cost is AED 7.10 billion, applying benchmark construction rates across the residential, hospitality and retail programme. Infrastructure CapEx is fixed at AED 370 million, supported by an AED 374 million contingency reserve (5% of hard cost plus infrastructure), for a total development cost, excluding land, of AED 8.55 billion. Capital structure: the initial SPV capital stack at financial close is structured 60:40 debt-to-equity. Subsequent phase construction is funded progressively from off-plan sales receipts, reducing external debt reliance over time and minimising sponsor balance-sheet exposure.
Revenue model: front-loaded residential off-plan sales (the core driver of capital), recurring hospitality operations from the boutique resort, wellness centre and eco-lodge, and recurring retail-leasing and community service-charge income. Indicative revenue composition: 70% residential sales, 15% hospitality, 10% retail and leasing, 5% recurring service charges. Returns target: Project IRR of 18% with an equity multiple of 2.5x, outperforming regional luxury benchmarks.
Phasing — three sequential phases over Years 1–7
Phase 1 (Years 1–3) — The Core. Site enablement and the first 250 residences, with the central community and landscape established.
Phase 2 (Years 3–5) — The Expansion. A further 375 residences, with the community and retail core and an extension of the central parkland.
Phase 3 (Years 5–7) — The Legacy. The final 125 residences, completing the cultural and heritage amenities and the wider landscape.
6A. Landowner Compensation
The Parties acknowledge that the Project Land shall be made available to the Project by the Landowner. In consideration for the contribution and use of the Project Land, the Landowner shall be entitled to compensation equal to AED 50 per square foot of the final approved saleable Gross Floor Area (GFA) developed under the Project.
Based on the current planning assumption of approximately 11,377,453.31 sq.ft. of saleable GFA, the indicative Landowner Compensation is estimated at AED 568,872,665.50.
The final Landowner Compensation shall be calculated based on the final approved saleable GFA as confirmed by the relevant authorities and reflected in the approved masterplan and development approvals. The timing, method of payment, and any related commercial arrangements shall be agreed between the Parties under the definitive agreements.
7. Economic Value
The Project is positioned at the most defensible end of the regional luxury market: ultra-low density, brand-led, heritage-integrated, and wellness-anchored. The product carries a structural premium driven by the Keturah™ brand, the Qibla-aligned masterplan, the UNESCO adjacency, and circadian-design principles applied across every typology. Differentiation is structural rather than promotional. Long-term value creation derives from sustainable absorption of premium units, recurring hospitality and retail income, and a brand-led pricing premium that compounds across phases as the destination matures.
8. Requests to Authority
In alignment with the Emirate’s long-term development strategy, MAG invites the Al Ain Development Authority, the Department of Municipalities and Transport, and relevant emirate-level bodies to engage as strategic partners in delivering the Project as a flagship heritage-and-wellness destination. In support of the Project’s expedited and compliant delivery, the following are respectfully sought:
- confirmation of the masterplan and zoning allocation set out in Section 4;
- expedited processing of authority approvals consistent with the Project’s phased, sales-funded delivery discipline;
- designation of the Hafit and Hili buffer interfaces as a coordinated heritage corridor under joint stewardship;
- alignment with ADREC and DMT on off-plan sales registration and escrow protocols under Abu Dhabi Law No. 3 of 2015; and
- an ongoing strategic dialogue between MAG and the Authority covering phase activation, infrastructure interfacing, and cultural programming.
MAG commits to deliver the Project to the highest international standards of design, environmental stewardship, and cultural conservation, and to act as a long-term partner to the Emirate in establishing Al Ain as a global wellness and heritage destination.
9. Legal Disclaimer
This Memorandum of Understanding is non-binding save in respect of provisions expressly stated to be binding in the definitive agreements between the parties. The planning parameters, financial estimates, phasing assumptions, and return targets set out herein are indicative and remain subject to (i) final feasibility studies, (ii) authority approvals, (iii) internal governance approvals, and (iv) the execution of definitive agreements. Nothing in this MOU constitutes a representation, warranty, or guarantee — whether as to return, value, programme, or regulatory outcome — save where expressly given in the definitive agreements. This MOU is governed by the laws of the United Arab Emirates and the Emirate of Abu Dhabi, with exclusive jurisdiction of the competent courts of the Emirate of Abu Dhabi.