Bahrain Ministry of Finance and National Economy and Gulf Finance House form holding company for Al Areen Desert Spa and Resort project

Commenting on the formation of the holding company after signing the MoU and Articles of Incorporation at the MOFNE, Mr. Esam Janahi, Chief Executive Officer (CEO), GFH said that the setting of the holding company signified a milestone in the development of this ambitious project which will emphasize and enhance the status of Bahrain as a regional hub for family and health tourism.

"With the support of the Government of Bahrain, we are absolutely confident that the Al Areen Desert Spa & Resort development will be a tremendous success, contributing more weight to the growing tourism industry of Bahrain."

Mr. Janahi further said: "Ever since the announcement of the Al Areen project in January this year, we have been getting tremendous response from potential investors and development partners who are keen to associate with the project. We are in advanced talks with many of these and will be making a series of announcements soon unveiling the partners of the project."

Mr. Janahi further said GFH will have a stake of 66.67 per cent which will include the share of investors and strategic partners in the project while the Bahrain Government will hold a stake of 33.33 per cent. He said the issued capital of the holding company will be to the tune of over US$185 million (BD 70 million).

Sheikh Hesham A. Mohammed Al-Khalifa, Head of Central Strategy Office, MOFNE, said: "The Government of Bahrain is keen that developing the tourism industry, particularly family and health tourism sector in Bahrain, should be a focus area. Our partnership with GFH is also a significant example of how Bahrain values joint efforts by government and private sector in pursuing economic development objectives."

The Al Areen Desert Spa and Resort, conceived as an unparalleled destination for a mixed blend of relaxation and rejuvenation facilities, coupled with a host of tourism and leisure activities, hospitality services and residential units with modern amenities and infrastructure was officially launched in January, 2004 under the patronage of His Highness Sheikh Abdulla Bin Hamad Al Khalifa, the Governor of the Southern Province.

The project, 25-minute drive from the city centre of Manama and 35-minute drive from the Bahrain International Airport, will have four major components - the Oasis Spa Resort, Themed Hotels, a Residential Village and Aqua Park. It will be located behind the Al-Areen Wildlife Sanctuary and adjacent to the Bahrain International Circuit.

The heart of the entire development will be the Oasis Spa Resort covering 300,000 square metres offering the entire array of health, spa and therapeutic facilities from the Indian Ayurveda to Roman Baths. The Oasis Spa Resort will further consist of two VIP towers that will house a range of specialized alternate medical therapeutic services, restaurants and 60 Bedouin style-tents for guest accommodation.

The Aqua Park, spread over an approximate area of 600,000 square metres will offer tourist and leisure activities and will be ready by mid 2007. World-class themed hotels spanning an area of 300,000 square metres will cater sophisticated hospitality services to guests of Al Areen Desert Spa and Resort. These are expected to be completed by 2006.

Spread over an area of 500,000 square meters the Residential Village component of the development will be a confined exclusive community consisting of about 350 exquisitely built one and two-storey villas.

The Oasis Spa Resort will be the first component of the project to be fully operational and is expected to be completed by 2005. The themed hotels will be completed the following year, while the rest of the development will be operational by 2007.