State-owned China Machinery and Engineering Corporation (CMEC) has been appointed to finance and build a luxury gated residential scheme in Dubai for Bahraini developer and bank, GFH Financial Group.
GFH announced the appointment on 21 July, fresh on the heels of China’s President Xi Jinping’s visit to Dubai last week.
Called "California Village", the scheme is one of the high-end gated communities located in Dubailand. It will have around 200 private villas and 400 apartments, located across from the IMG Theme Park on Sheikh Mohammed Bin Zayed Highway.
GFH said CMEC would finance up to 85% of California Village, and undertake the $150m project on a turnkey, engineering, procurement and contracting (EPC) basis.
Chinese banks will provide finance under an insurance policy to be issued by Chinese state government agencies, GFH said.
"California Village will mark our first cooperation and we expect to build on this relationship with CMEC and other Chinese partners to undertake works that reach up to US$ 1 billion in value covering other projects currently under discussion in the Gulf region," stated Hisham Alrayes, CEO of GFH.
Image: GFH Financial Group’s render of California Village in Dubailand