Palm Islands project awarded TO Malaysian Contractor

Phase One of the auspicious Palm Islands project (the largest man made Islands in the world) in Dubai has been awarded to Malaysian contractor’s, Perkapalan Mesra SDN.BHD The estimated value of the contract is worth US $270m and will cover the reclamation works for the first Island.

Sultan bin Sulayem, Chairman of Dubai Palm Developers, explained that “each Island will be divided into 11 main projects and we are delighted to confirm that Perkapalan Mesra are the first contractors to be appointed. They provided us with the most competitive bid of the 7 contractors who submitted proposals and have had similar experience building an Island in Malaysia, work will start immediately”.

Mr bin Sulayem continued “the first two phases of the Palm Islands project concentrates on the physical construction of each Island and then the installation of all the infrastructure. Building work will then start on each of the Island’s 40 hotels, 2000 villas, 2 marinas, multiplexes and a variety of attractions including the regions first water theme park”.

The project is being managed on behalf of Dubai Palm Developers by a joint venture between two American consultants, Hill International & Parsons International. The consultants estimate that the overall value of the contracts for Phase One & Phase Two of each Island will amount to US $ 1.5 Billion.

Mr Saeed Ahmed Saeed, Senior Manager Engineering Projects for Dubai Palm Developers said that “all 80 million cubic metres of raw materials will be put into place using an entirely marine based operation. To minimize any disruption onshore, barges will be used to bring the rocks from quarries around the UAE coast and Iran. A network of 4 temporary jetties will be constructed in the location where the islands are to be built”.

The first phase of the Palm Islands project is expected to take 2 years to complete. A further eighteen months is planned for the development of the infrastructure.

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Questions and Answers below help to explain the details of the Palm Island Development :-

1. What is the Palm Islands development ?

A- Palm Islands are a leisure, residential and tourist development being built in the Arabian Gulf off the coast of Dubai.

Each Island is being built in the shape of a Palm Tree consisting 17 fronds and a trunk along with a protective barrier reef.

2. Where exactly are they being built ?

The first Island is being built along the Jumeirah coast line opposite the recently established Dubai Internet City. This is about 25km from the Dubai city centre.

The second Island will be built about 15km away, just to the south west of Jebel Ali port.

3. How big are the Islands ?

Each Island will measure approximately 6km in diametre and collectively add something like 120km of new, sandy coastline to Dubai. The protective barrier reef surrounding each Island will measure approximately 11km and be 200m in width.

4. How long will the project take ?

Construction of the Island will take 2 years after which a further 1 – 2 years will be needed for building the infrastructure, hotels, homes and a whole variety of other leisure facilities.

5. Who came up with the idea to build Palm Islands ?

The rulers of Dubai have a history of innovation - no more so than with the recent successful development of a burgeoning tourist industry. Palm Islands is another example of this successful strategy to encourage foreign tourists to Dubai. It was conceived by Sheikh Mohammed bin Rashid al Maktoum.

6. How many hotels will they (each island) have ?

Each Island will have around 40 low level luxury boutique hotels plus one other larger property. Each property will have a distinctive style reflecting the peace and tranquility that the Islands will create.

7. Have any hotels signed up yet ?

There are literally dozens of hotels wanting land on Palm Islands, but the first to be announced was the Kempinski Group. Others will follow soon.

8. How many homes will be constructed ?

2,000 homes will be built on each development, mostly consisting of individual villas and condominium type apartments. The villas will all benefit from either a private beach or private marina facility. At least 26 architectural styles have been designed so far ranging from traditional Arabian to modern European, and Mediterranean to Oriental.

9. Who can own the houses ?

Properties will be for sale to local UAE Nationals, other Arabs from neighbouring Gulf States and Saudi Arabia. Property will be sold to buyers from overseas on the basis of a 99 year lease.

10. How much will they cost ?

The aim is to provide home buyers with a sound investment opportunity. At this time it is difficult to accurately predict what each home will cost, but as a guideline, individual houses will start from around US $550,000.

11. What facilities will the Islands have ?

Each Island will have a wide range of leisure and retail facilities catering to the needs of residents and visitors alike. These include a shopping complex, health spas, restaurants and cinemas along with the region’s first water theme park featuring Killer Whales & Dolphins.

Palm Islands will be home to 2 marinas, each capable of berthing up to 200 yachts. The marinas will also provide a shuttle service for guests staying at the Island’s Reef hotels.

12. What is the Reef ?

Each Island is surrounded by a protective barrier reef, landscaped with tropical gardens and vegetation. The reefs will be home to 40 luxury boutique hotels and become a haven of tranquility.

13. Where will the materials come from to build the Islands ?

The foundation rock will come from quarries around the UAE and further a field, including Iran. These will be taken to the site by large barges to minimize any disruption on land. Sand will be used as in fill and this will be dredged locally.

14. How much rock & sand is needed ?

We presently estimate that 80 million cubic metres of rock and sand will be need to build each island.

15. How much will it cost to build ?

The overall cost of the first two phases for each Island is estimated at US$1.5 Billion. This includes the building of the land, infrastructure, services & roads. The third phase relates to the construction of the hotels, villas and other buildings. The cost for this will be announced in due course.

16. How is the project being funded ?

The project is being funded by the Government of Dubai, local & international banks.