Financial crisis translates into lower construction costs for City of Arabia

Dubai: The $5 billion City of Arabia being built in Dubailand could actually have benefitted from the global financial crisis in terms of construction costs, according to the developers.

Syed Khalil, group executive director, Ilyas & Mustafa Galadari Group, City of Arabia, estimates that the group saved between 15 to 20 per cent in construction costs, due to lower steel and cement prices.

Khalil added that the development is on track, with the Mall of Arabia, set to be the largest in the world in terms of space, expected to be complete by the end of 2010.

The Mall of Arabia will have over 1,400 retail outlets, spread over 10 million square feet of Gross Leasable Area (GLA).

Presently, the largest mall in the world is the South China Mall with 1,500 stores spread over 7.1 million square feet of GLA.

Khalil said piling and capping work in the mall development is complete.

"We are working day and night and our target is to be completed within 27 months," Khalil added.

When complete, the entire City of Arabia development will have 8,500 residential apartments, catering to a population of 35,000 to 40,000 people.

There will also be two million square feet of commercial space, hospitals, schools, at least three hotels and retail space.

Only three residential towers have been sold so far and in Wadi Walk, half of the eight towers have been sold.

Khalil admitted the development has suffered a few delays with regard to the initial infrastructural development.

Around 90 per cent of the development's infrastructure is now complete, including internal roads, district cooling, two sub-stations, piping and cabling.

The sub-stations will be energised in the next three months.

Work on the six kilometre monorail is also due to start imminently which will eventually connect with the red line of Dubai metro.

The entire City of Arabia development is due for completion in five to six years, Khalil added.