Kuwait Investment Company announces USD47 million investment in Al Areen Desert Spa & Resort in Bahrain

Addressing a joint press conference in Kuwait today to unveil the details of the investment, top officials of the two reputed investment houses emphasized the unique value proposition of the project, which will serve to complement Bahrain's drive to emerge as a hub for family and health tourism in the Middle East.

Explaining the details of the investment, Mr. Bader Nasser Al-Subaee, Chairman & Managing Director, KIC, said: 'Being a pioneering institution in offering high-yielding investment opportunities in Kuwait as well as in the region, we are extremely confident of our decision to invest in Al Areen. Tourism, particularly family and health tourism, is a key focus area for Bahrain and the project represents an unparalleled development in spirit as well as magnitude which will catapult Bahrain's fame on to the global tourism industry map.'

Mr. Al-Subaee further pointed out that this was the second time in the recent past that the two companies had come together for a real-estate development project. 'Last year, KIC worked jointly with GFH to underwrite US$45 million which is part of the overall private placement exercise for the Bahrain Financial Harbour Holding Company, and this amount was oversubscribed.'

Mr. Esam Janahi, Chief Executive Officer, GFH said: 'We are very excited about having KIC, one of the oldest and reputed investment institutions in the region, as a key investor in the Al Areen project. We are confident that this partnership will add tremendous value to the Al Areen project, being developed as a first-of-its-kind project in the region.'

'KIC is our first overseas partner in the project, and the significance of the investment lies in the common outlook the two institutions share about the future of the regional tourism industry as well as the benefits of strategic economic diversification, which is a common imperative for countries in the region,' he said.

The Al Areen project has been 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. The development has four major components - the Oasis Spa Resort, Themed Hotels, a Residential Village and Aqua Park.

The first phase of the development - The Oasis Spa Resort - covers 300,000 square metres and offers the entire array of health, spa and therapeutic facilities from Indian Ayurveda to Roman Baths. It 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 evolution of the Al Areen project has been in top-gear since it was formally unveiled in January this year. Last month, GFH, along with the Bahrain Ministry of Finance & National Economy (MOFNE), announced the setting up of a holding company, capitalized at US$530 million for the project.

KIC with an authorized capital of KD50 million has the Kuwait Government as the principal shareholder holding a stake of 77 per cent. The investment institution was the first to launch international and local investment funds in Kuwait and has strong and exclusive relationship with large government and quasi-government institutions.

Al Areen Desert Spa & Resort is being developed as a strategic project by GFH with the support of the Government of Bahrain which holds 33.33 per cent through MOFNE in the project's holding company.

Al Areen Desert Spa & Resort, 25-minute drive from the city centre of Manama and 35-minute drive from the Bahrain International Airport, will offer an eclectic blend of relaxation and rejuvenation facilities apart from a variety of tourism and leisure activities, hospitality services and residential units with modern amenities and infrastructure. It will be located behind the Al-Areen Wildlife Sanctuary and adjacent to the Bahrain International Circuit (BIC).

Since establishment four years ago, GFH has earned an unimpeachable reputation as being one of the most innovative and imaginative investment bank in the region with a global focus. It is acclaimed widely as a business house with an eye on diligent diversification to various business segments including the airline industry. The investment bank has charted out growth through strategic alliances in the GCC and Middle East and North Africa region.