Istithmar plans to develop $150m resort on Zanzibar coast

Dubai: Istithmar, a Dubai World company, yesterday said, it plans to invest $150 million in developing a new luxury resort in Zanzibar, following a major strategic agreement between the company and the Zanzibar government.

The 76-hectare site at Muyuni Beach will contain a 50-room residence and spa retreat and a 150-room luxury hotel. Both developments will be operated by major international luxury hotel brands.

In addition, private luxury beach villas will be developed for sale at the resort, as well as a fisherman's village and water-sports centre, a sports club and children's centre. All developments will make the most of the access to the three-kilometre length of Muyuni Beach.

The land overlooks a marine reserve comprising four distinct habitats which are home to a diverse array of Indian Ocean wildlife including green turtles, humpback whales, whale sharks and more than 600 species of coral reef fish.

Sultan Bin Sulayem, chairman of Dubai World, the parent company of Istithmar, said: "Our strategy is to develop a balanced portfolio of properties across the world in markets that will deliver the returns that we and our partners seek. Zanzibar is one of the world's upcoming destinations and we believe that this resort will become a major contributor not just to the Istithmar portfolio, but also to the local economy and local people.

"This is the second Indian Ocean development deal completed by Dubai World this month - following our recently cemented partnership with the government of Comoros. It marks another clear step forward in our growing relationship with Africa, which is fast becoming a major focus of our investment strategy. We expect to make further announcement of acquisitions in the near future."

Shared goals

Abdul Wahid A. Rahim Al Ulama, Dubai World Group chief legal officer, who negotiated the deal with the Zanzibar government, said: "A strong working relationship with the Zanzibar government and clear shared goals have been crucial factors in Istithmar's investment in this development. Muyuni Beach is a truly stunning location. It is our vision to create a world-renowned eco resort, with luxury facilities to match the natural beauty of the area."

Work on the $150 million project will start immediately, with completion targeted for 2009.

Muyuni Beach is situated on an exclusive part of Zanzibar and overlooks an atoll of coral reefs boasting some of Africa's leading dive sites. Mnemba, a 45-minute drive from Zanzibar City, is home to the island's famous Stone Town, a world heritage centre. The destination is a three-hour flight from Johannesburg and only a 15-minute flight from Dar Es Salam.

The announcement of the plans for Zanzibar follows an announcement earlier this month of a partnership with the government of Comoros which will see the development of a luxury Indian Ocean island beach resort.

Last year, Istithmar purchased the V&A Waterfront in Cape Town, South Africa, and is also behind the development of the Djibouti Kempinski Palace Hotel in Djibouti City.