Dubai: RAK Properties yesterday launched a residential and tourism project, Mina Al Arab, which, upon completion by 2011, will have a value of Dh10 billion, officials said.

Spread along a three-kilometre beach, the project will have 11 five-star resort hotels including two eco-tourism resorts, 3,500 residential units, a cluster of 386 villas, six gated communities and a landscaped corridor.

"Construction of the first phase that includes infrastructure and a residential cluster, has already begun. Currently the contractors are carrying out the dredging and earthworks," Mohammad Sultan Al Qadi, managing director of RAK Properties, told reporters yesterday. "Phase 1 of the project will be completed in 2008."

The Government of Ras Al Khaimah, which owns a 45 per cent stake in the company, has provided the land for the development, which, officials say, will spearhead the growth of tourism.

Expatriates will be allowed to purchase properties freehold, with a five per cent downpayment, and another 10 per cent will be payable after six months, by when the developer will finalise mortgage deals with banks.

Developers are speaking to nine hotel management companies for the management of the five-star resorts. "We will announce them later, although we are in various stages of negotiations," Al Qadi said.

He said about one-third of the landscape will be developed, leaving the rest untouched, maintaining the natural habitat.

Mina Al Arab's amenities include 310 hectares of open space, ecological preserves and landscaping, traditional "abra" water taxis, parks, medical facilities, mosque, cafes and restaurants, and recreational facilities such as gym, tennis courts, spas and sporting activities.

With this, the company's portfolio is expected to reach Dh30 billion for the next few years, as it is widely expected to announce another landmark master development, Mangrove Islands at the heart of Ras Al Khaimah, near Manar Mall.

Highlights

Developer: RAK Properties

Type: Mixed-use

Development value: Dh10b

No. of residents: 20,000

Residential units: 3,500

Villas: 388

Ownership: Freehold

Resorts: 11

No of rooms: 3,500