Dubai: The US Consulate General in Dubai held a symbolic ground-breaking ceremony on Wednesday as construction began on its New Consulate Compound (NCC).

The NCC is being constructed in Bur Dubai on a six-acre site adjacent to Dubai Creek and the Consulates of Saudi Arabia and Qatar.

It will be the second purpose-built American diplomatic facility in the UAE; the first opened in 2004 in Abu Dhabi.

The move represents a significant commitment by the United States to a long-term presence in Dubai and will allow the Consulate General to increase the efficiency and accessibility of its services to the public, including visa services and assisting American citizens.

The special guest at yesterday's ceremony was Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman and Chief Executive of Emirates Airline and Group.

Paul Sutphin, US Consul General in Dubai, said: "It is not often you see something you have dreamed of become a reality. Three years ago, a new US Consulate General building in Dubai was just that, a dream. But, today we break ground on the New Consulate Compound and it will be completed and occupied by 2011.

"The NCC will be a vibrant, physical statement of the US-UAE relationship as well as highlighting the key role that Dubai plays in the political, social and economic life of the Gulf.

"We now have over 550 American companies and nearly 20,000 American citizens living and working in Dubai and the northern emirates. New, modern facilities will help us better serve our American citizens and engage energetically with international partners."

Construction costs for the project are estimated at $126 million (Dh462.7 million).

Richard Olson, US Ambassador to the UAE, thanked His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, for "generously donating a beautiful and historic area for construction of the NCC".

Olson said: "In 1998, the US Consulate was based in a number of rented villas and the US Consul General worked from rented office space.

"In 2004, the US opened an embassy in the capital Abu Dhabi and today we begin construction on a new diplomatic facility in Dubai. It is unusual for the US to open two diplomatic facilities in such a short period of time but Dubai is a unique city and this signifies the strength of our relationship."