QATAR has signed a deal with Cyprus to develop a hotel, office and residential complex in the capital Nicosia, targeting rising numbers of visitors to the eastern Mediterranean island.
Qatari Diar Real Estate Investment Company and the Cypriot government have agreed to set up a joint venture for the development of a leisure complex, with the initial investment exceeding $150 million.
Mohmmed bin Ali Al Hedfa, group CEO of state-owned Qatari Diar, said the first phase will be a five-star hotel with apartments and offices making up the second phase.
The area allocated for the complex is government-owned land close to the commercial hub of the capital and is expected to cover around 50,000 sq m.
Construction is set to begin within the next few months and the project is set for completion towards the end of 2012.
The joint venture agreement was one of several signed between the Cypriot government and Qatar during a visit to the island by the Gulf state’s ruler.
Cyprus, one of the smallest members of the euro zone, is heavily reliant on tourism, banking and real estate. It has well-developed tourism infrastructure along its coastline, but does not have many luxury hotels in Nicosia, located in the centre of the island.
“This is a welcome development which comes at a difficult time when most countries around the world have suffered from an economic slump.
“The development has helped restore investor confidence in the tourism industry of Cyprus,” said Antonis Paschalides, Cyprus Minister of Trade, Commerce and Tourism.