Al Dar announces $40b Al Yas development

Abu Dhabi: Al Dar Properties on Wednesday said it will develop a master-planned community in Al Yas Island, with investments up to $40 billion (Dh146.8 billion).

The island, located opposite Al Raha Beach, is one of the largest natural islands in the emirate, covering 2.5 million square metres, and was given to Al Dar by the Abu Dhabi government.

The development of Al Yas includes a Ferrari World theme park in coordination with the brand owner, in addition to a number of hotels, resorts, a race track, as well as a 300,000 square metre shopping mall, the biggest in Abu Dhabi.

The development will also include residential developments, two golf courses and equestrian facilities.

"The racetrack will be set according to the highest standards, and will meet Formula 1 specifications, with a unique design as it extends over the marina," Ahmad Ali Al Sayegh, Aldar chairman, said.

Aldar is authorised to carry out similar theme parks in other locations worldwide, in agreement with Ferrari, in which the Abu Dhabi government holds a five per cent stake through Mubadala Development Company, which was previously headed by Al Sayegh.

The project will be delivered in two phases, the first of which is scheduled for completion in 2008, while the second phase will be accomplished by 2014. Dredging for the main marina started three months ago.

Aldar is seeking the government's consent to classify the island as a special free zone, and hence allowing for freehold ownership for foreigners, similar to Al Raha Beach development and the islands of Al Reem and Al Saadeyat.

"The government is still considering the subject matter, and we expect feedback within a few weeks," he said.

The company recently announced several finance plans including issuing Islamic sukuk, and launching specialised funds, where all the assets of the company will be placed.

Raising capital was not ruled out.

"The figure of $40 billion might seem staggering, but we have carefully planned the financial aspects by phasing them throughout the construction and development period," said John C. Shaw, the company's chief investment officer.

"The plan is to develop a portion, adding value by creating a revenue generating asset, and accordingly arranging for more financial capabilities and stretching forward," he added.

Aldar said it wants the Al Yas development to be a special feature for Abu Dhabi, to attract high-spending tourists.

Aldar is seeking strategic alliances, saying it will maintain at least a 25 per cent stake to have the leverage necessary to maintain the project's main theme.