Dubai Festival City has announced plans to build a multi-billion dirham golf course community as part of its large-scale, mixed-use development.

The project is currently underway and will open by the end of 2003.

The first phase will include an initial investment of Dh500 million ($136 million) for the construction of an 18-hole recreational course and 200 units of residential development with associated facilities.

The project is being developed by Dubai's Al Futtaim group whose CEO Omar Al Futtaim said the addition of a world-class golf course community will further strengthen Dubai's image as a tourist destination.

Al Futtaim commissioned IMG (International Management Group) to conduct a study of the golf course market in Dubai and they confirmed the feasibility of this project.

The company said it is in negotiations with Al Naboodah Contracting for the construction of the course.

Dubai Festival City is the recently announced, "city within a city" being developed along Dubai Creek.