Khamas Investment Group will invest almost Dh2 billion in property projects in Dubai in a major expansion of the group’s holdings.
Vice-Chairman Bader Khamas said his group will invest Dh1 billion to construct five new towers in Jadaf for media and technology companies. The group also recently started work on two hotels: one on the Palm Jumeirah valued at Dh600 million and another in Rafaa that will cost Dh300m. Both hotels will have 620 rooms. Once the two hospitality projects are completed, the investment group will own a total of nine hotels, Khamas said.
Regarding investment returns in the hospitality sector, Khamas said it is still an attractive sector in the light of the growing number of tourists visiting the country and the construction boom.
He added the trend was true for the country in general but particularly so for Dubai. The returns range from 16 per cent to 20 per cent – “somewhat reasonable”, Khamas said.
However, he called for the further development of Dubai’s tourism sector and an increase in the number of entertainment events hosted in the emirate, saying visitors are drawn by creative events rather than the sea or safari tours.
To boost the sector, Khamas recommended that a theatre be built and called for more attention to be paid to the old city and museums.
Last summer, Khamas said, the tourism industry witnessed a considerable drop as hotel occupancy rates hit 50 per cent, as compared to previous years when it stood at 80 per cent. Khamas attributed the slight drop this season to the perception that Dubai is an expensive holiday destination.
Khamas set to invest Dh2bn