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UAE: $5 billion City of Arabia Fast Taking Shape
2009-03-27Dubai - Construction work at Dubai's $5 billion mixed-used tourism development -- City of Arabia -- is moving ahead, and has started taking shape inspite of the slump in the real estate sector.
While rumours and speculation surrounding many of Dubai's major projects, City of Arabia's owners Ilyas and Mustafa Galadari Group say that all elements within the project, including the Mall of Arabia, are on track and moving forward, with the global financial crisis having little impact on construction works. City of Arabia is being built in Dubai Land, the new Dubai next to Global village.
"The city will become a unique urban community within the new Dubai with its business offices, schools, clinics, luxury apartments, shopping mall, galleries, restaurants," said its Executive Director," S M Sayed Khalil, in an interview with Khaleej Times.
"We conceptualised a city where replicas of the world's best places would be build. Wadi Walk is themed on Venice, while Restless Planet is modelled on Disneyland.
The project would have a phased opening starting towards the end of 2010," Khalil added. The Mall of Arabia will have 10 million sq ft of gross leasable area -- the largest retail space in the region with 1,400 retail outlets.
A self-contained community designed to minimise the use of cars, the City of Arabia will be served by its own monorail system and will transport residents and visitors to and from a designated Dubai Metro station and around the site.
Here are excerpts from the interview:
What are the main components of the City of Arabia?
A: Its four key elements are Mall of Arabia, one of the world's largest malls; Restless Planet, a $300 million theme park, earth science museum and planetarium; Wadi Walk, a water front community with stylish apartments, outdoor cafes and attractive retail outlets; and Elite Towers, a group of 34 impressive commercial and residential buildings.
Why has the projects been delayed? Is it due to the current credit crunch?
A: The project has experienced some delays as is common for any large scale development in the course of construction, but all four elements are moving forward.
The delays are due to the size and scale of building infrastructure for a totally inclusive city rather than the current economic climate. Building costs have significantly reduced and that is all for the better.
What is the current status of construction?
A: The project is progressing well with ongoing pile cap works at 10 of the 44 zones.
Furthermore, 16 of the 44 zones are progressing with ongoing ?blinding works.
The mall's electricity substation is taking shape with concreting, plastering and equipment installation almost complete.
All the four elements, Wadi Walk, Elite Towers, Mall of Arabia and Restless Planet, are proceeding as usual.
Are you planning to go in for bank lending to complete these projects?
A: The Galadari family has been doing business in Dubai for more than 50 years and has forged strong and long-standing relationships with local banks. We have every confidence in our business model and all finances are firmly in place.
How much of construction is complete on the first two projects -- Mall of Arabia and Wadi Walk?
A: The entire infrastructure of the development is very near completion, which includes the main foundations, sewerage, drainage, irrigation and underground works.
In the wake of people leaving Dubai and decline in the number of tourists, how do you see the success of tourism-centric developments?
A: We anticipated today's environment and fully understand the major impacts facing businesses in the UAE. We have taken steps to protect their portfolio of businesses to ensure growth for years to come. As a well-planned mixed use development that includes both residential and tourism components, we are well prepared to face a long-term future in the region.
Are you considering lay offs in the coming months?
A: No, we are not.
By Aneela Batool
© Khaleej Times 2009
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