DUBAI, May 2 (Reuters) - The indebted shipbuilding arm of
Dubai World, the conglomerate that triggered Dubai's
debt crisis four years ago, signed a deal to develop undersea
hotels with a Swiss firm on Wednesday.
Only a month after it sought insolvency protection in Dubai
and Singapore to push through a $2.2 billion debt restructuring,
Drydocks World unveiled an agreement with BIG InvestConsult,
which holds the technology rights, to build the World Discus
Hotel.
The hotel, featuring a discus-shaped residential underwater
building connected to another discus above water, will be funded
by BIG, which is in talks with other investors.
"Drydocks and Maritime World is appointed as the exclusive
main contractor for construction of the new concept hotels and
cities floating in the Middle East," Drydocks said in a
statement.
Extravagant projects were the hallmark of Dubai during the
2002-2008 boom years and the emirate is home to man-made islands
shaped like palms as well as a map of the world. It also boasts
the world's tallest tower and an indoor ski slope.
The projects, aimed at boosting Dubai's global profile, were
built on massive amounts of leverage that nearly crushed the
emirate after the 2008 global credit crunch.
Thanks to a strong showing by its logistics, trade and
tourism businesses and benefiting from its status as a safe
haven amid the Arab Spring revolts that have roiled the region,
Dubai has been making a recovery.
On Wednesday, the firms said two developments with five
hotels attached to them are planned in the Middle East. The
Swiss firm is eyeing the coast of Dubai and Abu Dhabi.
"We are in the design and fabrication side for the project
... it's the same concept as rigs," Khamis Juma Buamim, chairman
of Drydocks World told reporters.
"This project has seven different types of designs and (each
will cost in) the range of around $50 million to $120 million.
The amount varies based on the design."
"The discussions are to build these around the world, not
just the UAE," he said.
(Reporting by Praveen Menon; Editing by Sitaraman Shankar)