ISTANBUL, 8 October 2005 — Dubai International Properties, a leading property developer based in the United Arab Emirates, has agreed to invest $5 billion (4.1 billion euros) in projects in Istanbul, officials said yesterday.
The deal between the company and the Istanbul municipality was signed late Thursday at a ceremony presided over by Turkish Prime Minister Precep Tayyip Erdogan — a former Istanbul mayor — and Dubai’s Crown Prince Mohammad ibn Rashed Al-Maktoum, the municipality said.
The investments would concentrate in the fields of tourism, transport and energy, it said, without elaborating.
Erdogan said the deal marked the first direct foreign investment in Turkey since the country opened accession talks with the European Union on Tuesday.
“From now on, substantial investments will come to our country from both the Gulf and EU countries. Our efforts are continuing and 2006 will be a better year,” Erdogan said, according to a press release by the Istanbul municipality. The Milliyet newspaper reported that Dubai International Properties would play a part in the construction and operation of projects developed by the city of Istanbul, Turkey’s biggest with a population of about 12 million and a booming real estate sector.
The projects include the construction of hotels, business towers, commercial centers, shopping malls and residential and recreational complexes on the European and Asian sides of the city, Milliyet said.
In a bid to boost economic cooperation, Erdogan last week visited the UAE, which has evolved into a major regional business and tourism hub over the past few years.