Gulf Construction Online - $1.6bn complex for Doha on way

Regional News

An artist’s impression of the entertainment and retail destination.

$1.6bn complex for Doha on way

01 October 2010

AL-FUTTAIM, Qatar Islamic Bank and Aqar Real Estate Investment have signed a Dh6 billion ($1.6 billion) agreement to construct a state-of-the-art entertainment and retail complex in Qatar’s capital Doha which will be the first of its kind in the country.

The country’s largest multipurpose complex is located on the northern highway linking Doha International Airport with the proposed Bahrain Causeway and will include a full retail centre, an entertainment park and two hotels. Construction on the 433,000-sq-m project will begin early next year.

The first retail phase is slated for completion in the first quarter of 2012 and the remaining two phases will be completed by 2015.

Ikea, ACE, Toys ‘R’ Us, Marks & Spencer, Intersport – all part of the Al-Futtaim group – have already been confirmed as the project’s premier anchor tenants.

Al-Futtaim is one of the biggest family-owned enterprises in the region and owner of the globally-acknowledged Festival City brands in the UAE and Egypt, which have become the mainstay for leisure, shopping and entertainment in the two countries. The group already has a presence in Doha through its automotive, retail, technology and engineering businesses.

The project is owned and developed by Bawabat Al-Shamal, the parent company which is providing the land to construct this iconic development. Bawabat Al Shamal comprises four primary shareholders: Al-Futtaim Real Estate Services, Qatar Islamic Bank (QIB), Aqar Real Estate Investment Company and a private company.

Salah Jaidah, chief executive officer of QIB, said: “This joint venture agreement with the Al-Futtaim group demonstrates both parties’ firm commitment to not only enhance Qatar’s development, but amplify its positioning within the regional and global economy.”

Al-Futtaim Group Real Estate, the real estate development arm of the group, has built the award-winning Dubai Festival City and Cairo Festival City, both of which have attracted some of the biggest global retail and leisure brands to these mixed-use developments.

Robert Willett, group chief executive officer, Al-Futtaim, said this project will transform the leisure, retail and entertainment industry in Doha while providing visitors a very attractive destination.

“We are excited to be part of this mega venture which will be a defining moment for Qatar’s leisure, retail and entertainment industry. Our involvement symbolises Al-Futtaim’s desire to remain innovative across all markets.

“This project, as with our Festival City brand in Dubai and Cairo, has been designed with the visitor in mind. Our knowledge of the region’s retailing and leisure industry has taught us to do the uncommon, uncommonly well,” he said.
Details of the agreement were overseen by Q-Invest which acted as the sole financial adviser for all parties. Q-Invest specialises in Shari’ah-compliant investment banking and delivers leading financial solutions to its growing spectrum of clientele. The project has also received support from the Qatari government.

The state-of-the-art complex’s futuristic design separates each individual area into its own uniquely identified space that will transport clientele from the world of waterslides and roller coasters, into a retail area populated with diverse international brands.

Ensuring a seamless integration of this one-of-a-kind development has been achieved through an expertly designed infrastructure system, accentuated by a six-lane highway that will increase the flow of traffic to this iconic destination.
With its strategic positioning, the mega complex is ideally equipped to meet the retail and entertainment needs of not only Qatar, but also Bahrain and the neighbouring GCC countries.

The agreement was signed by representatives of all parties at Al Badia Golf Club, Dubai Festival City, Dubai, UAE.