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Dubai Holding to begin development of new tower
DUBAI Holding, the investment firm owned by the emirate's ruler, is set to announce a development close to its iconic Burj al Arab hotel, according to a person with knowledge of the plans.
Downtown Jumeira will include a 550 m high tower called Burj Jumeira, the source said, asking not to be identified because the plans are private. The project could be announced as soon as later this week, and construction will start immediately.
The development in the Al Sufouh district of Dubai will include homes, office space, as well as hotels. The first phase is due to be completed in 2023. There have been previous attempts to develop the site.
The development comes as Dubai Holding is exploring investment opportunities abroad. For many years, the company was mostly focused on selling assets and restructuring debt after a property-led crisis.
The firm, which owns Dubai Properties Group and hotel operator Jumeirah Group, is one of three main state holding companies in the emirate.
The government-backed company is starting the project as a long-running property slump looks set to continue for a couple more years as a record number of new homes come onto the market.
Dubai's residential values have slid about 25 per cent from the 2014 peak, including a 10 per cent drop last year. Jones Lang LaSalle expects values to decline by 5 per cent to 10 per cent this year. BLOOMBERG