Farayand Virtual World

* Dubai begins to lure American funds for major projects

Dubai, which has made the best use of Gulf financing to develop its property and tourism sectors, has finally begun to attract American capital, showing its competitive edge, said investors.

Capital Partners, a private American equity firm spearheading investment between the United States and Dubai, yesterday announced the development of RiverWalk, a Dh3.67 billion project to be built in the Dubai Internet City funded by American capital.

Capital Partners is investing Dh730 million to build the project, valued at Dh3.67 billion when completed. It is one of many projects to come.
The company signed an agreement between Capital Partners and Dubai Technology and Media Free Zone (TECOM) part of Dubai Holding to develop RiverWalk.
A Venetian-style development in the heart of "new" Dubai, RiverWalk offers a car-free environment covering more than 1.6 million square feet of land and will include more than 5 million square feet of residential apartments, inspiring offices, boutique shops, galleries, cafes and an international business hotel.

Capital Partners was set up in Dubai in 2002, a time when the gap between the US and the Arab world was at its peak following the September 11 attacks.

Company officials said, initially, it was a hard sell that took about three years to convince the US investors to put their money in Dubai.
"Initially, it was difficult to convince the US investors to come to Dubai. American society is dominated by the media and we had to do a lot of work to break the ice," said Jon-athan Wride, managing director of Capital Partners.

"We offer a 20 per cent leveraged return. It makes good business case for investors."
Ahmad bin Byat, director general of Tecom, said: "From its inception, Dubai Internet City has been known for its innovation, and it is fitting that it should be the location for a development like this, as well as be the start of what we believe to be an inevitable influx of FDI.
"However, this project is not just about figures: it is about creating a sustainable community environment for our tenants and residents for decades to come."

DAR Consult is the designer and architect for the project while Al Habtoor has carried out the enablement work.

(Source:www.Gulf News.com)