Dubai Festival City signs loan deal

The agreement was signed with a syndicate of banks comprising National Bank of Dubai as lead arranger & facility agent; Arab Bank Plc and Barclays Bank Plc as co-arrangers with Clifford Chance acting as legal advisors to the financing banks.

The agreement represents the single largest financing deal so far for any component of the Dubai Festival City project and is one of the largest syndicated real estate project financing deals in the emirate.

Omar Al Futtaim, CEO of the Al Futtaim Group said: "This financing lead arranged and syndicated by National Bank of Dubai, one of the largest banks in the UAE with participation from leading regional & international banks is unique in terms of both its size and complexity. This financing is to part fund the Festival Centre, the core component of the Dubai Festival City development."

Planned to open in September 2006, Festival Centre located on a waterfront marina at Dubai Festival City, is a lifestyle retail and entertainment development comprising a High Street Boulevard with large retail stores, over 450 stores/outlets; Canal Walk, a 1 km long canal with water taxis, cafes & walkway and several themed waterfront pavilions.

The Festival Centre will provide a world class collection of shopping experiences combined with distinctive restaurants, cafes, family, entertainment and speciality shops and offering an unparalleled view across the marina, Dubai Creek and the city skyline.

Omran Sultan Al Owais, Managing Director, National Bank of Dubai said: "This transaction is a demonstration of NBD's commitment to take a leading role in structuring and arranging financing for a high quality project of Dubai and regional level importance which will further emphasise Dubai's status as the pre-eminent tourist destination and business hub in the Middle East.

"We are delighted to be associated with this prestigious project promoted by the Al Futtaim Group, one of the largest, professionally managed business houses in the Middle East."

Sa-ed Jarallah, Senior VP and Area Manager-UAE, Arab Bank Plc said: "This financing is a continuation of the long and well established banking relationship with Abdulla Al-Futtaim's Group and is in line with Arab Bank's overall strategic objective of growing its business in the UAE market."

Mark Petchell, Barclays Group Country Manager - UAE, said: "Barclays is very proud to be associated with Dubai Festival City and the Al Futtaim Group. This is an iconic development for Dubai, contributing to its leading role as a global commercial and tourist destination. Barclays' participation is a direct reflection of our commitment to the progressive development of the UAE and the region".