Sharjah: Sharjah is not known as a crowd magnet for entertainment and luxury resorts, with residents putting up with an industrial area encroaching on the city, bottleneck traffic and inferior shop fronts. But a series of million dollar projects around town funded by the Sharjah Government is intended to uplift its image, attract tourists and stimulate the economy.
The $100 million (Dh367.2 million) Majaz Waterfront project to open in November will revamp the Khalid Lagoon. The Heart of Sharjah will transform heritage sites to their former 1950s glory and the Dh350 million Khor Fakkan resort will develop this tourist hotspot on the east coast.
Gulf News met with Marwan Al Sarkal, chief executive of the Sharjah Investment and Development Authority (Shurooq) and the developer of the projects, to find out how the emirate is attracting investments.
Gulf News: What are the new projects that Shurooq has in the pipeline?
Marwan Al Sarkal: We launched a new segment to develop ecotourism destinations in Sharjah so we are in the process of studying locations that we can develop. Next month, we are going to study where the projects are going to be located, the size of investments and if we're going to fund it or attract investments.
We need to focus on what will make Sharjah different from what's in the market and to promote Sharjah differently. Ecotourism is something we believe in. The resort will be very sensitive to the environment.
It won't be huge or fancy or with a lot of cement, but something that's very simple so you appreciate the environment much more than the lifestyle of the development.
We are assessing one of three locations to use for ecotourism: Mangroves, a desert and an island.
Will there be a land grab if the development encroaches on people's properties?
Two of those areas are not sensitive when it comes to urban development around them. One location has to be maintained in a different way to sustain the values of it. The site in the middle of the desert is next to an inhabitant, there are people there. We will not take away any land, we will set regulations and guidelines and protect the area so that there is no future urban development in that area. We are going to fence it in a way that is very sensitive to the area, not like a military fence, but something that is very simple so that animals can cross.
What will happen to the local community if the development comes up there?
We always think about how to make the community a part of the development, make them feel they have a say in the process, what are we developing, how it's going to help them, how it will add to them, what to do to help it become a successful development. We are not thinking of getting a tour bus of 700 tourists to the site and demolishing the environment. We are focusing on a very limited number of tourists to these locations that we are developing.
So are the inhabitants going to be relocated?
No, no one is going to be relocated. We will touch base with the Enivronment and Protected Areas Authority of Sharjah and work with them to make sure we set certain regulations.
What are the challenges you forsee around this?
There will be challenges, but as long as you make them understand the value of doing this project, I am sure that they will appreciate it. One of the challenges is changing people's habits, people are hesitant to move or change.
We are still in the process, we haven't reached a stage to say ‘we're going to move you guys, we're going to take you out.' We're still working with the municipality to meet those challenges if they arise.
Whereabouts is this location?
In the middle of the desert. It's still under study. I can't say where. It would fluctuate the market prices of those lands, people are not going to be happy with it, they're going to be waiting. When we launch the project, we will announce the locations.
What is the status of the Khor Fakkan resort project?
We approached hotel operators and we have signed an MoU with an operator and we'll officially announce that in September or October. It's a five-star resort. It's an Asian, international brand that has not yet been to the Emirates.
When will construction begin?
We are planning to start construction by the first quarter of 2012 and it will take two and a half years.
What is the size of the investment and when do you expect returns?
It is a 170-room hotel. It's about Dh350 million. It's a ten year return on investment.
Have you been able to attract investments so far for the projects?
Khor Fakkan has a very good feasibility study and good return for any investor who would like to invest. But for the first phase, as a strategy, we thought let's show our commitment in order to develop projects that are managed and owned by Shurooq.
