FIE and Dubai Investments set up Dh3bn joint venture
Al Taif Investment, a joint venture between Dubai Investments and Fujairah Investment Establishment (FIE), was officially launched yesterday with more than Dh3 billion worth of projects and Dh500 million in paid up capital.
Dubai Investments owns a 60 per cent stake in Al Taif Investment and the remaining 40 per cent is held by FIE, said Khalid Kalban, Chairman of Al Taif Investment, after the opening of the company’s headquarters in Fujairah.
The joint venture will initially invest in the region’s booming real estate and industrial ventures and plans to buy existing companies.“Fujairah is distinguished by its coastline and mountain views. It is an ideal location for setting up tourist projects.
And, being open to the ocean and not the Arabian Gulf, trade and business would have lower operational costs and be more secure,” said Kalban, explaining the new company’s location. “These were the reasons behind Dubai Investments seeking this partnership project with the Government of Fujairah.”
Al Taif was set up last year and has studied carefully investment opportunities before launching. “Al Taif Investment will commence operations with two major projects – Fujairah Business Park and The Market. These are pioneering developments that will significantly boost mountainous emirate’s profile as an upcoming business hub,” he said.
Another prime area of focus for Al Taif will be the creation of industrial projects in Fujairah aimed at meeting the growing demand for building materials and to position the emirate as an industrial hub. “We will set up a factory for gypsum boards and a plant for the production of extruded aluminum,” said Kalban.
The emirate had largely been overlooked and investors stood to realise significant gains by seizing opportunities in Fujairah, he said. “While the UAE continues to grow, the business potential of smaller emirates such as Fujairah remains largely untapped.
“In launching these projects, we are seeking to capitalise on Fujairah’s investment potential and exploit the diverse business opportunities. Dubai Investments has always been keen to diversify its portfolio by investing in the different emirates, strengthening its presence in the UAE.”
Humaid Aylan, General Manager, Al Taif Investment, said: “Fujairah Business Park, costing Dh650m-700m, will consist of two towers – a 44-level office tower and a 31-level tower comprising a 5-star hotel and furnished apartments, with a total of 424 luxurious hotel rooms and apartment units. The hotel tower will also feature a two-level shopping mall.”
The project is positioned as a landmark one that will significantly alter the business landscape of Fujairah.“The Market project is a Dh2bn investment and will consist of housing facilities, business areas, shopping outlets and a wide range of entertainment and cultural attractions,” added Aylan.
Meanwhile, the planned gypsum board factory will begin production in a year. The total cost of the two-phase factory is about Dh45m.
The Dh300m extruded aluminum plant will deploy machines and technologies imported from Italy and Korea.
Follow Emirates 24|7 on Google News.