Dubai: Meydan on Sunday signed a deal with India's IDBI Bank to finance infrastructure such as roads, utilities and telecommunications at the Dubai city which is themed around horse racing.
This is the first infrastructure-financing deal for IDBI Bank outside India, closed through its subsidiary which is based in the Dubai International Financial Centre (DIFC).
Both Meydan and IDBI refused to disclose the amount, tenor or rate at which the financing is done. Meydan chairman and chief executive Saeed Humaid Al Tayer simply said it was a "handsome figure".
IDBI Bank deputy managing director Bharat Pal Singh said the financing deal was the largest for an infrastructure project in the Middle East for IDBI Bank to date, and also the bank's first overseas financing of its kind.
IDBI Bank is one of India's leading providers of project and infrastructure financing. Headquartered in Mumbai, India's financial capital, IDBI Bank is one of the largest commercial banks in India with 65 per cent of its ownership in government hands.
Acumen
"We know our business well. But we need people with a strong financial background to guide us in that area," Al Tayer said.
"IDBI Bank is widely respected for its business acumen and we look forward to how this shared vision gives shape to Meydan's future business objectives. As one of India's leading banks, IDBI Bank is well poised to facilitate greater investment symbiosis between the UAE and India."
Singh said his bank chose Meydan as its first overseas financing partner because the horse racing-themed project "will have a major impact not only on the development of Dubai but also globally".
He added: "Since our DIFC branch was set up last year, we have been looking for opportunities such as this one. We have a long history of supporting development projects in India. We will bring that expertise to this region".
IDBI Bank's DIFC operation is its first overseas branch.
"We believe that the MENASA [Middle East, North Africa and South Asia] region has considerable growth potential, and our presence in Dubai through the DIFC branch will offer significant business opportunities.
"Apart from being a hub for the bank's regional operations, the DIFC branch will also serve as IDBI Bank's nodal point for raising foreign currency resources from the US and European markets in addition to the Asian markets," Singh said.
Meydan City will feature four distinct sub-districts — Meydan Racecourse, Meydan Metropolis, Meydan Horizons, and Meydan Godolphin Parks, with its distinctive Godolphin Tower created in the image of a thoroughbred horse.
Strategic alliance
With a financing deal with IDBI Bank, Meydan has taken a large stride towards cementing partnerships with two of the fastest-growing economies in the world - China and India.
One of the first large corporations in the UAE to forge a business relationship with a Chinese firm, Meydan has now taken the next step in the evolution of this strategy.
As far back as 2007, Meydan awarded a project to build a car park to Guangsha Middle East Construction, a subsidiary of Guangsha Holding Venture Capital Group, one of China's leading diversified conglomerates.
The relationship with Guangsha was taken a step further when Meydan awarded it the contract last year to build the first phase of the Meydan Metropolis Business Park.
The Dubai-based firm is also providing its expertise in building the Tianjin Horse City in partnership with the Chinese government.
Yesterday, Meydan kicked off the process of deepening a working relationship with the other Asian economic giant, India, by signing a long-term infrastructure financing partnership with IDBI Bank.
"Meydan is synonymous with long-term vision, long-term partners," Meydan chairman and chief executive Saeed Humaid Al Tayer told Gulf News yesterday. "[The financing deal] is just the first chapter of this partnership," he said.
