An investment company created in Abu Dhabi three years ago is planning to set up more ventures in Qatar to tap its massive liquidity and high per capita income, said chief executive officer.

Abu Dhabi Investment House (Adih) has been encouraged by its mega Entertainment City to pump more investment in Qatar's fast growing but costly real estate sector, Rashad Al Janahi told the Qatari Arabic daily Al Sharq.

Janahi said his company and local partners are pushing ahead with the $3 billion (Dh11bn) Entertainment City, which is located in the heart of the master plan Lusail Development just north of the capital Doha.

"This is one of our biggest projects to be constructed in the Gulf. For this purpose we have set up a $500 million fund to spend on the project. Work on the infrastructure has started and the project will be carried out in stages… we expect it to be one of the most attractive tourism sites in Qatar," he said.

Janahi said Qatar would remain a priority for Adih on the grounds that there is huge domestic liquidity, the per capita income in Qatar is very high and demand for property will remain strong, adding this would allow Adih to make high profits.

"As I have said, Qatar is a very attractive and promising investment market and because of this, we intend to enter into another investment venture in property services. We are currently holding discussions with potential Qatari investors to enter as partners into this project, which will not be smaller than the Entertainment City."

Adih was set up in Abu Dhabi in 2005 to invest in real estate and other sectors in the oil-rich Gulf.

Last year the company reported its net profits jumped to Dh149 million in 2006 from Dh39m in 2005, while its assets nearly tripled to about Dh714m from Dh266m in the same period.

With a focus on private equity, corporate finance, real estate, asset management and investment placement, Adih advises clients on investments that deliver excellent performance in a regionally booming economy.

Its team of professionals can also assist clients in managing Initial Public Offerings (IPOs) and raising Private Equity.