Dubai Government Consolidates Real Estate Activities

To date, DIP has been a developer. Going forward, company officials say Sama Dubai will balance its portfolio with acquisitions in the near term, possibly in Europe and the US.

Sama Dubai also will manage local, regional and global real estate assets on both a direct or indirect basis. The effort likely will include the formation of joint ventures. One of DIP's activities has been the administration of $5 billion in real estate investments jointly run by the Istanbul Metropolitan Municipality.

Sama Dubai is one of three Dubai Holding investment companies including Dubai International Capital and Dubai Investment Group. Unlike the others, Sama Dubai will focus exclusively on the real estate industry.

Earlier this week, Sama Dubai announced the launch of a massive new waterfront project on Dubai Creek called the Lagoons. The 1,600-acre project will offer freehold property with 100% ownership to all nationalities. Sama Dubai will develop, market and operate properties on half the land and the other half will be sold to third party investors as land plots for development.

As planned, the Lagoons will have seven themed islands interlinked with bridges and topped with residential units, shopping centers, cultural venues, marinas. Among other things, the development will have its own Central Business District.

The Lagoons is Sama's first in Dubai and is one of the first projects in Dubai to undertake a comprehensive Integrated Environmental Impact Assessment (EIA) following international standards across all phases of the project.

Last month, Dubai Holding announced its plans for $12-billion of real estate projects in major Moroccan cities over the next five years. Two of the projects include Two Dubai Towers-Casablanca and Marina de Casablanca. Already under way in Rabat is Amwaj, a $2-billion community development project.