Dubai, United Arab Emirates (AFP) – Dubai-based construction company AJM Construction has been awarded a $1 billion US $1,927 million financing deal to build a hotel in the United Arab Emirate.
The deal will see the Dubai-listed construction company receive the first of four $1m loans from Dubai-owned Citigroup Inc and the U.S. Department of Housing and Urban Development.
The loans, which will be secured by the $4.7bn Dubai Development Authority (DDA), are the largest ever from a single U.A.E. sovereign fund, which is expected to contribute $3.5bn to the project.
The construction company is also set to receive a $500m loan from the DDA to develop the hotel.
“We’re excited about the future of the development in Dubai and its potential for tourism, housing, retail and other sectors,” said the company’s chief executive, John Fenton.
The project is set to cost $3 billion to build, according to a government announcement on Wednesday.
It is due to be completed in 2023.
The development comes as Dubai’s development agency, the Dubai Development Company, aims to become the largest sovereign wealth fund in the world by 2020.
Its previous funding round in 2014 was the largest in the UAE’s history, reaching $1tn.
The DDA has been building a number of hotels in the region, including in Dubai, and has also been building the country’s first high-speed railway, linking the Gulf emirate with the southern port city of Ras Al Khaimah.