Dubai says launching project to build world's biggest mall

DUBAI Sat Jul 5, 2014 6:20pm IST

Related Topics

DUBAI (Reuters) - Dubai is launching a project to build an entertainment and hotel district that will include the world's largest shopping mall, the emirate's ruler, Sheikh Mohammed bin Rashid al-Maktoum, said on Saturday.

Plans for the "Mall of the World" project were originally revealed 18 months ago, helping to trigger a strong rally in Dubai's real estate and stock markets.

Saturday's announcement appeared to indicate that substantial work on the project would now begin, though the statement did not say when construction would be completed, how much it would cost or how it would be financed.

“The project will be built in phases in alignment with the gradual growth of family tourism in Dubai,” said Mohammed Abdullah al-Gergawi, chairman of Dubai Holding [DUBAH.UL], which is Sheikh Mohammed's personal investment vehicle and will develop the project.

The latest version of the plans includes construction of an 8 million square foot (743,000 square metre) mall, connected to a theme park, theatres, medical tourism facilities and 100 hotels and serviced apartment buildings with 20,000 rooms.

The complex would be able to host 180 million visitors annually. Seven kilometres (4.4 miles) of promenades connecting the facilities would be opened to the air during the winter but covered and air-conditioned during the hot Gulf summer.

Dubai is still recovering from its 2009 debt crisis and the International Monetary Fund has warned a slew of new real estate projects could lead to another boom-bust cycle. But officials say they are able to handle the risks, and a strong economy is helping Dubai's government-linked firms restructure their debt.

(Reporting by Andrew Torchia; Editing by Stephen Powell)

FILED UNDER:

Reuters Showcase

Uber's Woes

Uber's Woes

Uber, other taxi-hailing apps hit new roadblock in Delhi.  Full Article 

Transfer Pricing

Transfer Pricing

India's Vodafone decision eases tax worries for Shell, others.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook tops Wall Street revenue target in 4th quarter.  Full Article 

Governance Reforms

Governance Reforms

IMF sets June deadline for progress on governance reforms.  Full Article 

Fed's Stance

Fed's Stance

Fed upbeat on U.S. economy, cites strong job gains.  Full Article 

Tumultuous Run

Tumultuous Run

McDonald's CEO Don Thompson leaving.  Full Article 

Samsung Results

Samsung Results

Samsung Elec's smartphone primacy under threat from Apple after weak Q4.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage