A subsidiary of one of the United Arab Emirates' biggest family-owned firms has set up a $2.3 billion sharia compliant real estate development fund that will focus primarily on hotels, the firm said on Tuesday.
A statement from KM Properties, a member of Al Rostomani Enterprises, said the fund would be used to set up a hotel operator and finance a hotel chain that will also abide by Islamic sharia law.
The hotel operator is eyeing taking over existing hotels in the Middle East and Asia, including in Saudi Arabia, Morocco, Turkey, Malaysia, and India. The first KM hotel will be set up in Dubai and is set to open in 2008, the statement added.
"Phase one of the fund is closed to subscribers, but it is anticipated that international corporations will enter the fund in its upcoming stages," the statement added.
The UAE is home to the tourism and trading hub of the Gulf Arab region, where economies are booming on the back of record high oil prices. The fund is the latest to emerge from the UAE, which is in the midst of a real estate and hospitality boom. |
