DUBAI-KM Properties, a member of the UAE-based Al Rostamani Enterprise family conglomerate, is launching a $2.3-billion real estate development fund that will develop and own an international chain of hotels. Phase one of the hospitality and real estate development fund is closed to subscribers; phase two will be open to international corporations.

KM Properties has already committed an investment of $290 million to develop a 700-room hotel and serviced apartment project in Dubai, scheduled to open or business in the summer of 2008. The project also will act as a model for attracting investors and rolling out the company’s multi-market development plan.

The new-concept hotel chain, a brand name for which has not been established, will encompass significant elements that have not been addressed or targeted by existing hotel flags. Chief among them is that the hotels will abide by the Islamic Shari’ah principles, which address many aspects of day-to-day life; politics, economics, banking, business law, contract law, and social issues. The newly created hospitality flag may also take over the management of existing properties.

KM also has formed a Shari’ah-compliant hospitality operator company to operate hotels on behalf of the fund. The company plans to operate Shari’ah-compliant properties throughout the Middle East and Asia. During the first 12 months of the fund, the company hopes to be operating hotels in Saudi Arabia, Morocco, Turkey, Malaysia, and India. Three operating agreements have been signed and several more are in being negotiated.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.