$3.2bn island city being developed in Bahrain

A new 12 square kilometre island city being developed on land reclaimed from the sea in Bahrain's Al Muharraq area at a total investment of $3.2 billion was unveiled earlier this week by a consortium of investors led by Kuwait Finance House (KFH).

KFH holds a 50 per cent stake in the consortium, called Diyar Al Muharraq, comprising a number of high net worth investors from the region. It will be building the residential township, which will have around 30,000 housing units for over 100,000 people.

Aaref Hejres, CEO of Diyar Al Muharraq, said: "Diyar Al Muharraq is signalling a new era and a proud future for Bahrain as it provides the stepping stone to meet all people's aspirations of property ownership. It will embody the best of what people expect and deserve in both a home and a community."

The island country of Bahrain has been experiencing an acute land shortage and most of the city will be on reclaimed land, which will add another 40km of waterfront area, including sandy beaches and a marina, to Bahrain's coastline.

"This is the first time that a private developer has invested in a development in Bahrain that includes various categories of housing, all of which will share the same high standards of living and amenities. Our goal is to be part of a concerted housing strategy for the Kingdom, and we are actively working towards securing close links with the government."

Diyar Al Muharraq's long-term strategy also includes a plan to support the Bahraini Ministry of Housing's social housing programme. Situated on the northern shores of Muharraq, the development will be gradually released, with the first facilities ready for use in 2010.

The master plan has been developed with internationally renowned consultants in conjunction with local government agencies. The developer's vision is to create a unique city for the future, offering a choice of housing and a quality lifestyle for all. Diyar Al Muharraq seeks to offer a lifestyle for people of all incomes to enjoy, as the price structure and selection of freehold properties is accessible to buyers from various income levels.

The master plan maps out a self-contained city with many accessible, landscaped public spaces. It will be among the largest publicly accessible waterfronts in Bahrain. The development also includes numerous community spaces and facilities, a number of five-star hotels and a shopping mall with extensive parking, a business district and a light logistics support area. "An urban development of this scale required us to thoroughly research urban planning, amenities, infrastructure, and environmental measures, among others. High-level consultations have ensured that the necessary approvals are in place. The result is a comprehensive and methodical plan to develop the many facets of Diyar Al Muharraq," said Hejres.

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