ABU DHABI, 12 May 2008 — Mubadala Development Company that manages over $10 billion in assets will develop Sowah island into a new business district — Sowah Square — that would house the stock exchange.
Sowah Island, off Abu Dhabi’s coast, will be developed by John Buck International, a joint venture Mubadala set up in March with Chicago-based real estate firm The John Buck Co. Construction started in summer 2007, with the project scheduled for completion in 2010.
The island is the location earmarked by the urban framework plan, ‘Plan Abu Dhabi 2030’ for Abu Dhabi’s new Central Business District.
Sowah Square will be a commercial development containing over 570,000 square meters of office, hotel and retail amenities.
It will feature premium quality business facilities and amenities including extensive conference facilities, a 300-seat auditorium, a five-star business hotel with serviced apartments, exclusive parking for over 5,200 vehicles, a private business club, fine dining and waterfront luxury retail.
“It is a multibillion dirham development and construction has already started,” Carlos Obeid, Mubadala’s chief financial officer, told a news conference yesterday.
“The island will be home to the new headquarters of the Abu Dhabi Securities Exchange.”
Obeid said the project would be funded by a mix of equity and debt but would not provide details on actual costs.
“We are certain that John Buck International’s developments will meet the sophisticated needs of local, regional, and international companies in Abu Dhabi and that the square will provide businesses with a flexible long-term environment from which to flourish and grow,” he added.
John Buck, chief executive officer of John Buck International, said, “The cornerstone of John Buck International is the customer — our buildings tenants.”
Tom Healy, chief executive officer of the Abu Dhabi Securities Exchange, represented the first announced tenant of the Square.
“The Abu Dhabi Exchange is delighted to be the anchor tenant of Sowah Square.”
Meanwhile, a report published by the department of planning and economy (DPE) in Abu Dhabi says that Abu Dhabi’s GDP will hit $300 billion by 2025, with steady growth of non-oil sector.
According to the report, non-oil sector is predicted to touch 60 percent of Abu Dhabi GDP.
The report noted that during the last five years Abu Dhabi’s economy witnessed its strongest, broadest and highly diversified-ever development as a result of high oil prices at international markets.
Abu Dhabi controls the world’s fifth-largest oil reserves.