Al Futtaim Capital in Morocco land deal

Al Futtaim Capital said yesterday it is in the final stages of acquiring a seven million square metre plot of land in Bouznika, Morocco, to develop a master-planned community encompassing a mix of residential, retail and leisure facilities. This will be Al Futtaim's third large-scale mixed-use project in the region after Dubai Festival City and Cairo Festival City. Once the master plan is finalised, the Dubai-based company will seek the relevant governmental approvals before officially launching the project next year. The project is located halfway between the capital city of Rabat and Casablanca, the country's business hub, with a 5.5km frontage on the busiest highway that connects the two cities. This will be the second investment forming part of Al Futtaim Mena Real Estate Development Fund and will include some of the elements found within the festival city concept. The scheme will also incorporate Al Futtaim's retail brands as an integral part of the development. Omar A Al Futtaim, Chief Executive Officer, Al Futtaim, said: "By expanding into Morocco, we have a great opportunity to grow despite the slowdown in the global economy. There is strength, diversity and depth to the Moroccan economy and we see many good reasons to be confident about our investment. This acquisition gives us a foothold in Morocco that we intend to build on. Morocco is on track to achieve a gross domestic product growth rate above five per cent for 2009, one of the highest in the world, which is a testament to the country's strong leadership and fundamentals." According to the Ministry of Housing, Morocco currently has an undersupply of homes of more than one million and each year more than 100,000 new families enter the market. Based on the directives of King Mohamed VI, the Moroccan Government has launched several programmes that are focused on providing homes to the country's low-to middle-income housing segment. The Al Futtaim Capital's project will cater to this segment of the market. Morocco's diverse and open economy has served it well during these challenging times. With an unemployment rate at its lowest in five years as well as a young, well-educated and growing population, Morocco is one of the most attractive markets in the Middle East and North Africa. It has the second-largest non-oil GDP in the Arab World, and the second largest GDP per capita in North Africa. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .