Musanada, an Abu Dhabi government entity, is developing the infrastructure for the South of Shamkha project, located on the outskirts of the UAE capital.

The project, aimed at Emirati nationals, will have over 12,000 new units available by 2013 and will be funded by the government, Ziad Ammous, Operations & Projects Control Director said.

“It will be a mini urban city with retail, leisure and other facilities for the residents. It will be mostly villas,” he said at Cityscape, the property show.

The project will cover a total area of about 40 square kilometers, to accommodate some 200,000 residents.

KEO International Consultants developed the concept master plan, he said.

“We have begun developing the infrastructure with some contracts awarded,” Ammous said.

Abu Dhabi which is diversifying its economy with multi-billion dollar projects in infrastructure, tourism and industry is still facing a housing shortage due to a rising work force. The government is spending billions in developing housing projects to ease the shortage.