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Al Manal plans to invest Dh5b in Dubai real estate

Juma bin Ahmed Al Ghurair, Chairman of Al Manal Development, told Khaleej Times yesterday that most of this investment would go to develop residential and commercial towers in Dubai Investment Park.

He said the project, which will include "a number of buildings", was currently at initial design stage, adding that an official announcement to that extent is likely to be made next year.

The company, which was established earlier this year to make its foray into a freehold market, will also be launching two more towers in the emirate, including a residential tower in down town Dubai (on Al Maktoum street) and an office tower in Port Saeed area (on Al Ittihad Road).

To be developed at a combined cost of Dh500 million, both towers will be offered on 99-year leasehold since buildings in these areas cannot be sold on a freehold basis. Both projects are expected for delivery in 2008.

Asked why the company has opted for down town Dubai rather than going for the New Dubai area, Al Ghurair said: "A lot of people want to stay in down town Dubai, because of the proximity to their businesses or just being used to the area."

"I would like to suggest that the government gives more importance to this area. If not, the area will be decaying with the time since everyone now wants to invest in the New Dubai area and nobody is really interested in pouring money in the area that I would not like to call Old Dubai," he said.

"We, on the contrary, believe that our project on Al Maktoum street is going to be more successful and attractive than most of the projects in the New Dubai area, because it will be located in the city centre and just a few metres away from the Central Metro station," he added.

The other project strategically located on the Dubai-Sharjah road, on the other hand, is invaluable because it will have an ample parking area, which is a big issue and great deficit in Dubai nowadays, he explained.

Both projects, which are currently in design stage and getting a preliminary approval from authorities, will be launched in November and in December respectively after the ground work starts, he said.

Al Ghurair said the Dh330 million Lakeside Residence project in Jumeirah Lakes launched in April has got tremendous response, with nearly 50 per cent of the development having been sold so far.

According to him and contrary to the view that rents in Dubai will come down in the near future, rents and real estate prices in Dubai will go up "more and more". Dubai is growing into a new dimension and qualifying itself as a new metropolis. In five years' time it will be mentioned among other major cities in the region, he predicted.