GCC countries should construct more Sharia-compliant projects to tap large funds held by Islamic banks in the region, the general manager of a top Bahrain real estate firm said yesterday.
First Bahrain Real Estate Development Company general manager Amin Al Rayyad was speaking as he announced plans for a new $450 million development in Seef.
He also announced the appointment of KEO International Consultants to draft a master-plan for a development containing offices, residences and a Sharia-compliant hotel on a 21,000 sq/m adjacent to Bahrain City Centre Mall.
Mr Al Rayyad said the project would go some way to meeting strong demand on the part of investors for Sharia-compliant projects.
"What you have is a lot of liquidity resting with Sharia-compliant banks. There is a lot of money on the sidelines that needs to be channelled into products and investment that are likewise Sharia-compliant.
"Previously such opportunities have not been as prevalent and the money has gone elsewhere," he said.
"There are a lot of investors, especially in this area, who have a preference to invest in Sharia-compliant projects - we feel that the market right now is providing us with enough business in that sector," he added.
First Bahrain's mixed-use development will see the construction of a four- star Sharia compliant hotel and serviced apartments, with work scheduled to begin in the first quarter of next year. "If you have a plan with mixed use there are a lot of synergies between components and that creates a very nice area to live and work.
"It is still early days, but there has been interest from a number of hotel operators because of the project's strategic location," Mr Al Rayyad said.
He also revealed that he believes businesses are now gravitating away from Bahrain's traditional business district in the Diplomatic Area in favour of Seef.
"It is very clear that there is already a very strong interest in Seef that has materialised in things like Seef Mall and numerous towers and businesses and hotels that are already well-established.
"Seef is becoming more defined and I think it will be the business and entertainment hub of tomorrow.
"There is no doubt in my mind that businesses are starting to gravitate here, or the Diplomatic Area has traditionally been the kind of office hub and now I think that is pretty much near capacity in terms of future development so I think that the natural progression will be to the Seef area," he explained.
Award-winning architectural firm KEO's senior vice president Ali Dashti said he believed the development would add "enormous value to the people of Bahrain".
First Bahrain is seeking partners and institutional investors to co-develop the remaining segments of the project.
First Bahrain Real Estate Development Company general manager Amin Al Rayyad was speaking as he announced plans for a new $450 million development in Seef.
He also announced the appointment of KEO International Consultants to draft a master-plan for a development containing offices, residences and a Sharia-compliant hotel on a 21,000 sq/m adjacent to Bahrain City Centre Mall.
Mr Al Rayyad said the project would go some way to meeting strong demand on the part of investors for Sharia-compliant projects.
"What you have is a lot of liquidity resting with Sharia-compliant banks. There is a lot of money on the sidelines that needs to be channelled into products and investment that are likewise Sharia-compliant.
"Previously such opportunities have not been as prevalent and the money has gone elsewhere," he said.
"There are a lot of investors, especially in this area, who have a preference to invest in Sharia-compliant projects - we feel that the market right now is providing us with enough business in that sector," he added.
First Bahrain's mixed-use development will see the construction of a four- star Sharia compliant hotel and serviced apartments, with work scheduled to begin in the first quarter of next year. "If you have a plan with mixed use there are a lot of synergies between components and that creates a very nice area to live and work.
"It is still early days, but there has been interest from a number of hotel operators because of the project's strategic location," Mr Al Rayyad said.
He also revealed that he believes businesses are now gravitating away from Bahrain's traditional business district in the Diplomatic Area in favour of Seef.
"It is very clear that there is already a very strong interest in Seef that has materialised in things like Seef Mall and numerous towers and businesses and hotels that are already well-established.
"Seef is becoming more defined and I think it will be the business and entertainment hub of tomorrow.
"There is no doubt in my mind that businesses are starting to gravitate here, or the Diplomatic Area has traditionally been the kind of office hub and now I think that is pretty much near capacity in terms of future development so I think that the natural progression will be to the Seef area," he explained.
Award-winning architectural firm KEO's senior vice president Ali Dashti said he believed the development would add "enormous value to the people of Bahrain".
First Bahrain is seeking partners and institutional investors to co-develop the remaining segments of the project.
Via|Gulf Daily News|by MARK SUMMERS
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