Bawadi announces joint venture with Al Ghurair Investment to develop AED 10 billion shopping mall

Phase 1 of the shopping mall is set to be completed by 2012, and will cover a gross leasable area (GLA) of four million sq ft.

The project follows a directive from His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to double investments and develop the biggest shopping area in the world on a total area of 40 million sq ft at Bawadi.

The agreement to develop the mall was signed by Saeed Al Muntafiq, Executive Chairman of Tatweer, and Abdullah Al Ghurair, Chairman, Al Ghurair Investment, at Tatweer's offices in Emirates Towers.

Following the signing ceremony, Al Ghurair said: "This agreement highlights our confidence in Bawadi as one of the most desirable investment opportunities. It also underlines the active role Bawadi will play to meet the tourism and commercial objectives of the recently announced Dubai Strategic Plan.

"The innovative and uniquely designed, top-notch shopping mall will be one of the largest within the biggest shopping area in the world, and will add a new dimension to the variety of services and facilities offered by Bawadi. With this agreement, both companies will seek to bring back the historic Okaz Souq - the first-ever retail outlet which existed in the region - as Arabs are known to be the pioneers in this sector."

Saeed Al Muntafiq said: "This agreement reflects our faith and trust in Al Ghurair Investment and the success of its investments locally and regionally especially in the retail sector, in which it has implemented several many projects. This new project is Al Ghurair's second investment in Bawadi and, as such, is a vote of confidence in Bawadi's potential to deliver sustained commercial success. It also validates the level of trust and the strength of the relationship Bawadi has developed with investors locally, regionally and internationally.

"This agreement also reflects the keenness of both the companies to help establish Dubai as a prime tourist hub in the region. Our first agreement included Al Ghurair's initial investment of AED800 million in the Al Maghreb Resort and Spa, which will position Bawadi as a leader in the tourism and hospitality industry providing solid investment opportunities and an encouraging business friendly environment in the region."

Al Ghurair Investment is credited with setting up the first shopping mall in the Arab world in Dubai. It owns and manages a diversified business portfolio, ranging from industrial sectors and real estate to banking, retail and shipping. The group operates both locally within the UAE and in overseas markets.