JEDDAH, 17 January 2005 — The real estate sector in the United Arab Emirates has witnessed an unprecedented growth in recent years.
A number of mega projects are under various stages of development in Dubai, including the gigantic twin island called The Palm, Dubai Marina, Jumeirah Beach Residence, Emirates Hills, Emirates Lakes, further expansion of Dubai airport, Dubai Festival City, Burj Dubai, Dubai Pearl, Dubai Health City, The Business Bay, Dubai International Financial Center and Dubai Metals and Commodities Center.
In an interview with Arab News, Hashim Al-Dabal, CEO of Dubai Properties, which recently launched The Business Bay, shed some light on the project.
Al-Dabal said: “The Business Bay received tremendous response since the day it was announced by Gen. Sheikh Mohammed ibn Rashid Al-Maktoum, crown prince of Dubai and UAE minister of defense. The response was similar to that received by other large projects such as Jebel Ali Port, Dubai Internet City, Dubai Media City and Dubailand.
“The Business Bay will not only encourage huge investments from within the UAE and outside, but will also boost the importance of the UAE as a leading global center for business, commerce and tourism. In line with the government strategy to enhance the local economy and revitalize and catalyze investments, the project is set to be a leading center for business and shopping, similar to some of the well-known centers like New York’s Manhattan or Tokyo’s Ginza. Like them, it will act as a base for many leading local, regional and international firms.”
Al-Dabal said as is the case with all the initiatives that were launched over the past few years, the government of Dubai continues to and will develop basic infrastructure of leading edge projects. It will then offer the projects to the private sector to make the best of the investment opportunities provided by projects such as The Business Bay.
When asked about the size of investments the project will attract, Al-Dabal said, “Although initially, the total investment size was calculated to be worth between AED20 billion and AED 30 billion, the actual size may well exceed these numbers going by the response to the first phase. As you know, we received commitments of more than AED4 billion in just a matter of hours from domestic and foreign investors.”
He added that the total cost of development and management will run into billions of dirhams as the project will have some complex features and elements such as extension and widening the famous Dubai Creek and ensuring the smooth flow of water as well as preserving the natural environment. The Business Bay will be developed over an area of more than 64 million square feet. To develop an area as large as that requires massive input, he said.
He said the project will be more like a city within a city. It will feature several business and residential towers, landscaped gardens, shopping malls, hotels, and many other facilities. Being the first of its kind in the Middle East, it will build a new capital for business and commerce in which many leading local, regional and international firms will be based.
Also, overlooking the magnificent view of the Creek, The Business Bay will have many beautiful canals and gardens to create an aesthetic appeal.
Al-Dabal said Dubai Properties is in the process of finalizing plans for Phase 2. “These will be announced soon and before the previously targeted date as we are encouraged to speed up the development due to the enormous positive response that Phase 1 achieved. The response surpassed all our expectations. All the plots and spaces for towers were completely sold out within a day.
Asked what prompted such a massive demand, Al-Dabal said, “Apart from the ideal location of the project, attracting huge investments, in fact, reflects the trust of investors from the UAE and from outside, in the future of the country’s economy and its ever-increasing reputation in the world. These investors are confident enough that the government is dedicated to providing an ideal environment for business.”
Dubai Properties, one of Dubai Holding entities, is well-known for carrying out major projects such as the AED5.2 billion Jumeirah Beach Residence project, the first of its kind in the Middle East.