The Abu Dhabi Group and Pakistani real estate tycoon, Malik Riaz, will invest $45 billion to build various construction projects in Pakistan, a rapidly developing country.
The money will be invested over a period of 15 years.
“It will be in phases. Every phase will be studied by itself… It depends on the situation when we decide to go ahead with the projects,” said Sheikh Nahayan, chairman of conglomerate Abu Dhabi Group and the United Arab Emirates Minister of Higher Education and Scientific Research.
Currently, the plan is to invest $10 billion in Islamabad and Lahore, and $35 billion in Sindh.
Construction projects in Karachi will include: the tallest building in the world, a sports’ city, an education and medical city, an international city and a media city. The Seven Wonders of the World will also be constructed in miniature.
The most likely site for construction is 3-4 km off the coast of Karachi in the Arabian Sea on KPT or “Kutta” Island.
There is also a rumor that the Abu Dhabi Group-Malik Riaz may also build 125,000 houses on KPT Island.
The project also intends to address the current water and electricity issues in Pakistan. Seawater will be used to produce electricity for the new buildings, and a modern water treatment plant will convert seawater into drinking water.
The deal should be a major boost for Pakistan’s economy. The intended projects will employ more than 2.5 million people and will boost more than 55 industries like cement, bricks, iron, steel and glass, said Dr. Murtaza Mughal, President of The Pakistan Economy Watch (PEW).
The various job types created by the construction projects will also provide positions for the lower and middle classes of Pakistan.
The new construction projects will be an especially great boon for the cement industry which is undergoing a slow comeback from for an estimated 4 years of stagnant sales. In the first half of 2011, the cement industry underwent a net loss of $6,242,756,500 (Rs337 billion). But, sales in 2011-12 increased 8.84% domestically and 3.45% overall. Experts expect the new deal to aid the continued rise of domestic sales.
The Tourism industry is also expected to improve once the world’s tallest building and miniatures of the World’s Seven Wonders have been constructed.
If successful, the deal will boost Pakistan’s economy and may convince foreign and local investors that it’s time to invest in Pakistan.
– Kasey Beduhn
Source: The Nation, Arabian Gazette, The News, Dawn.com
Photo: Dreambuild Construction