Dubai Holding, the investment arm of the emirate’s royal, has announced a $20 billion project to develop a new district in the city, indicating the emirates ambitious drive to keep growing rapidly despite the slump in oil prices affecting the economy of the region.
But there seems to be much caution is approach, the officials called there will be phase after phase project implementation responding to the market demands with no specific deadline. They said financing arrangements had not been finalized yet.
The first phase of Jumeirah Central, estimated to cost $6.5 billion, will build around 3000 apartments and 2800 hotel rooms.
“We are holding marathon discussions covering all aspects of the usual prospects” to construct the district, said Morgan Parker the COO of Jumeirah Central.
Jumeirah Central will be setup on land that was allocated for building the giant Mall of the World. It was under consideration to develop a carpet area of 8 million sq.ft (745,000 square meters) internally connected to 100 hotels and a Theme Park.
That project was announced in the middle of year 2014, it was just then the downfall of oil prices started. Last week, Dubai Holding announced the location change for the project, but officials kept mum over the questions regarding the happening to that project.
Although Dubai’s economy seems to be perform better than the gulf neighbors affected by cheap oil owing it to emirate’s tourist and business services sectors. However, real estate prices witnessed a slump since last year and some residential and retail projects have been called off.
Mohammad Kamal, a research analyst at Dubai-based Arqaam Capital, claimed that Jumeirah Central would rejuvenate the business climate in the region particularly the construction companies under crisis.