Gulf property developers gear up to transform Tunisia's capital city

Diggers are busy tearing up the wider Tunis area, which is braced for vast urban development, as the government tries to boost economic growth to offset the country's spiralling unemployment.

The largest project, launched in September and christened ‘The Mediterranean Gate,’ will house Africa's tallest tower according to Farhan Faraidouni, the head of Sama Dubai property development company, a subsidiary of Dubai Holding.

The new town is being built on a thousand hectares of land by a lake shore, south of Tunis, at a cost of 25 billion dollars (19 billion euros) -- the country's biggest ever investment in property development.

Sama Dubai has poured one billion dollars of its own money into constructing 16 commercial buildings in October to get the project off the ground.

At the heart of Tunisia's construction boom lies the government's pledge to change the law to allow foreigners to purchase property in the north African country, according to the local media.

Unlike some of its neighbours in the Maghreb, Tunisia is not rich in natural resources and has to target foreign-led projects to revive its economy and spur on growth.

Faraidouni said he has been assured foreigners will be able to buy the buildings without going through the rigmorale of getting permission from local authorities.

The Mediterranean Gate project, which will take 15 years to complete, will be surrounded by kilometres of maritime coast along the Bay of Tunis, business and leisure parks, homes, luxury hotels, a golf course and a marina.

Developers say the complex will have space for up to 500,000 inhabitants and 100,000 daily visitors and provide a haven for off-shore investment and wealthy tourists.

It may be early days in the country's construction boom, but many local peoples' dreams of improving their living conditions and job opportunities are resting on the different projects.

‘When the building arrives, everything will follow!’ an analyst told AFP.

Developers are betting on Tunisia's proximity to Europe and guaranteed sunshine to draw in buyers and investors, who may be attracted to its stability and potential for tourism.

Meanwhile, authorities hope the country's annual growth rate will rise by 0.6 percent and create 350,000 jobs over the next five years.

Overall, Tunisia hopes to create a million new jobs by 2018 to cut its exorbitant unemployment rate, which stands at 14.3 percent nationally, including the 88,000 university graduates who cannot find work every year.

‘The dream is achievable if we do not isolate the new cities, ignore the local market or cause frustration,’ the analyst added.

Another project, ‘Tunis sports City,’ which includes luxury homes and state-of-the-art sports academies, was launched in May by another Gulf construction company, the Aboukhater Group.

Similarly, the ‘Bled Al Ward’ (Country of Roses) project will cover 50,000 hectares (124,000 acres) of marsh land in the north of Tunis, where Al Maabar group plan to construct a lakeside town devoted to health spas.

As the world's second most visited destination for seawater therapy after France, Tunisia has witnessed a surge in private medical tourism and people in search of aesthetic treatment.

In the coastal area of Raoued, Gulf Finance House will build by 2010 ‘North Africa's first offshore financial centre,’ according to another property developer.

The sites in the north and south of Tunis will be linked by a bridge suspended 260 metres above the sea to ensure easy access to the old part of the city and the airport.