Dubai World to invest USD70 million in Comoros Island Beach Development and Resort

Dubai World inked a deal yesterday with senior representatives of the Comoros Government. The deal saw the formation of a company established specifically for the acquisition, Dubai World Comoros Limited, in which the Comoros Government is a shareholder.

The partnership will see the redevelopment and refurbishment of the country's leading hotel, the 150-room Le Galawa beach resort and spa. In addition, 22.5 hectares of adjacent prime beachfront will be developed, with 100 new residential villas and townhouses, a spa, restaurants, and beach and kids club. A watersports centre with a boat club, diving centre, marina watervillas and a residents' club will also play an integral role in the upscaling and expansion of the resort development.

Sultan Ahmed Bin Sulayem, Chairman of Dubai World, said:

"Today's announcement marks the first stage of a strategic partnership between Dubai World and the Government of Comoros. We have a strong understanding and affinity with our new partners, and look forward to building a long-term relationship that will see Dubai World play an active role in the master-planning of the country."

"We believe our partnership will make a significant contribution to the tourism offering in Comoros. It also marks the expansion of Dubai World into the African tourism market, following recent investments in hotels and resorts in Djibouti and Cape Town - including V&A Waterfront and Pearl Valley Signature Golf Estate and Spa - and the opening of a Cape Town office for Istithmar."

The Le Galawa resort was formerly owned by Sun International and built by Sol Kerzner. Interest in the project was built following a visit by Dubai World executives to Comoros in July 2007, where they met with representatives of the country's government, including the president of Comoros, Ahmed Abdullah Sambi.

Idi Nadhoim ,Vice President of the Union of Comoros, said:

"The tourism potential of Comoros is clear to all visitors but has been largely untapped until now. Having Dubai World on board as partners in this major redevelopment of the country's leading hotel, and subsequent master-planning for additional island developments, will enable us to maximise that potential.

"We expect the partnership to yield significant returns for the people and economy of the Comoros as a result of the investment and sector expertise of Dubai World."

Khaled Al Kamda, Vice Chairman of Istithmar, said:

"This is an important strategic deal for Istithmar. Comoros has tremendous potential for growth, and this development offers both partners significant opportunity. Construction on the development will commence in October 2007, with a view to reopening the hotel, resort and residences in early 2009."