DUBAI, 6 October 2005 — US property tycoon Donald Trump and Dubai developer Nakheel plan to market billions of dollars of Trump-branded hotels and residences in the booming Gulf Arab emirate, the partners said yesterday.
But The Trump Organization is not bound to invest any money in the luxury developments, Nakheel Chairman Sultan Ahmed ibn Sulayem told Reuters in an interview. “The deal is specifically that we brand with the Donald Trump brand. The deal allows him to invest if he wants,” said Sulayem, adding that Nakheel will finance all initial development costs.
Nakheel has secured the rights to 17 Trump brands, including The Trump Plaza Marina Residences and Trump World Tower. The first development in Dubai will be The Palm Trump International Hotel and Tower, to be built on the giant man-made Palm Jumeirah island off the coast of Dubai, the tourism and trading hub of the United Arab Emirates.
Sulayem said Nakheel would pay The Trump Organization a fee for rights to use the Trump name, based on revenue from the projects. “It is a percentage basis,” he said. He declined to give details, but said the value of the investment by Nakheel in Trump-branded projects would run to billions of dollars.
