Dubai: Dubai is soon expected to see the return of development activities as the government is joining hands with investors to kickstart major projects, marking a new beginning in its economic development.
Yesterday, the government's investment arm, Investment Corporation of Dubai (ICD) announced a $1 billion (Dh3.67) billion investment fund for development activities, while Dubai Real Estate Corporation (DREC) said it will start a series of mixed-use tourism projects and ports operator DP World announced plans to expand Dubai Cruise Terminal.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, yesterday approved a number of mixed-use and tourism projects worth more than Dh2 billion to be developed by Wasl Asset Management Group, a DREC subsidiary.
Visit
Shaikh Mohammad yesterday visited the headquarters of Wasl. He was accompanied by Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, the Crown Prince of Dubai, and Shaikh Maktoum bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Chairman of DREC. "Stop is not part of the vocabulary in Dubai, and success is a continuous process that never stops," Shaikh Maktoum said.
The new projects will provide a further 1,500 new rooms in different parts of the emirate. Dubai has more than 80,000 guest rooms spread over more than 500 hotels and apartments.
"The move will clearly bring back some confidence in the real estate market. The boost of $1 billion is not a small size. It's something that needs to be done to bring more liquidity to the sector and I think Dubai can build on the success of that," said V Shankar, chief executive for Standard Chartered in Europe, Middle East, Africa and the Americas.
Shaikh Mohammad endorsed Al Maktoum Development that will replace Al Maktoum Hospital while Wasl will redevelop Jumeirah Beach Club Development as well as the new expansion plans for Le Meridien Airport hotel and the new Muraqqabat Development, which comprises residential and hospitality buildings.
Hesham Al Qasim, Chief Executive Officer of Wasl, said, "Since its inception, Wasl's strategy has been focused on becoming a significant contributor to the success story and economy of Dubai," he said.
ICD has signed a memorandum of understanding with Brookfield Asset Management Inc. to form an investment fund of up to $1 billion to invest in Dubai's real estate sector. Both will each seed the fund with $100 million, then invite additional capital from local, regional and international investors.
"We see this agreement as another big step in our next phase of growth. It once more affirms Dubai's attractiveness as a premier investment destination in this region," said Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai's Supreme Fiscal Committee and Board Member of ICD.
The fund will target investment opportunities in both freehold and non-freehold areas. "This shows that a modest degree of confidence is returning to the Dubai market for specific product types, although I certainly expect to see the fund target completed properties with solid income streams as opposed to higher risk off plan units," Matthew Green, head of research and consultancy at CBRE Middle East told Gulf News.
— With inputs from Babu Das Augustine, DeputyBusiness Editor
