A new 397,000sq.m sustainable city will come up on Yas Island in Abu Dhabi.

Construction of the Dh1.8 billion Sustainable City – Yas Island is scheduled to start in the last quarter of this year and aims to be completed in 30 months.

Abu Dhabi-based Aldar Properties and Dubai's Diamond Developers inked an agreement to form a joint venture to develop a fully sustainable and unique community.

The Sustainable City – Yas Island, in Yas North, will comprise 864 townhouses and apartments and 3,000sq.m. of retail space.

It will be powered by renewable energy, enabling residents to save up to 100 per cent on energy bills.

"The Sustainable City – Yas Island will have all the elements of high-quality, sustainable living and will complement our commitment to carbon reduction, in line with the UAE's Net-Zero by 2050 Strategic Initiative.

"The development will also provide another new and exciting lifestyle choice for our customers right in the heart of the highly sought after Yas Island," Jonathan Emery, Chief Executive Officer at Aldar Development, said at Abu Dhabi Sustainability Week.

Diamond Developers' 'The Sustainable City' branded concept and working model in Dubai was the first fully operational sustainable community in the Middle East.

Faris Saeed, chairman, Diamond Developers, said, "The successful replication and rapid growth of sustainable developments around the world depend on partnerships and collaborations between public and private sectors.

"We are pleased to join hands with Abu Dhabi's leading developer Aldar, and believe this agreement offers substantive opportunities for the exchange of knowledge.

"As we work together towards building a more sustainable and prosperous future for the UAE, we pave the way to the evolution of a more sustainable infrastructure and a clear pathway to achieving net-zero."

There will be car-free residential clusters, recycling facilities, and indoor vertical farming. In addition to residential and retail elements, the development will feature an equestrian centre, a mosque, cycling and jogging tracks, and spacious landscaped areas.