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Abu Dhabi Investment House launches $7b 'Style City'

ABU DHABI - Abu Dhabi Investment House (ADIH) launched on Monday the $7 billion Style City - latest development concept that will attract international brand names in the style, design of fashion, jewelry, furniture and luxury living from both academic and retail aspects to create style and design hubs in select emerging markets.

The Style City concept will be implemented in Abu Dhabi, Qatar, Morocco, Tunisia and India, as part of the memoranda of understanding signed by ADIH with major developers in these countries.

Rashad Y. Janahi, ADIH board member and managing director, signed the accord with Dr. Hani Shammah, CEO, Emirates International Properties (EIP) - the real estate arm of Emirates International Investment Company (EIIC) - in order to create Porta Moda Abu Dhabi.

EIP is a highly reputable real estate institution and its partnership with ADIH is a testimony to the project's major potential success.

The first of its kind "Style City" concept is a mixed-use development comprising residential and retail components while focusing on fashion and style. The "city"' will feature a grand fashion district containing premium and luxury brands in the fashion, jewelry and interior design fields; an educational district containing institutions for the same, as well as museums and exhibition centers; as well as a residential and a leisure district with town houses, studios, luxury villas, cafes, restaurants and renowned boutique hotels and spas.

Janahi also signed two MoUs with Peter Panayiotou, acting chief executive officer at Gulf Finance House (GFH) , one of the region's successful investment banks, to establish Porta Moda in GFH 's North African successful developments that are under way in Morocco (the Royal Ranches, Marrakech) and in Tunisia.

Janahi said "there is such a wealth of talented young designers in the region who are traditionally drawn to cities such as London, Paris, New York and Milan to develop their skills in these very competitive markets. We want to help provide environments where the same people can nurture their chosen profession in the world of style, design and fashion but be given the chance to stay close to the markets and consumers they serve. This undoubtedly is the dawn of a new era in fashion and design."

"With the MoUs signed Monday, dedicated locations within these developments will feature Porta Moda to serve the surrounding communities," he added.

Additionally, both Qatar Entertainment City and India Entertainment City have signed MoUs with ADIH to develop Porta Moda Qatar and Porta Moda India.

The global masterplanning of the Porta Modas is being developed based on highest international standards to best serve the targeted market segments. The selection of destinations of "Style City" projects comes as a result of studies that show flexible governmental regulations and the economic growth potential those countries enjoy.

Moreover, study has also shown that young adults are moving toward studying aesthetics and arts.

With Style City being within their geographic reach, they will be able to get their education at the hands of international experts. Additionally, the real estate industry boom in these countries boosts the demand for more housing units in cities and towns as a result of growing urbanization of these countries' population, burgeoning middle class, increased disposable income, easy availability of housing finance at cheaper rates and tax incentives.

Against this backdrop, Style City presents an unprecedented investment opportunity for investors who are looking to diversify their portfolio by industry and region.

A "Style City" fund will soon be created and will be placed through the ADIH Placement team and underwriters who are marketing the fund throughout the Gulf. The Placement team is available in the UAE, Qatar, Oman, Saudi Arabia, Bahrain, Kuwait and the rest of the region. The fund is also being marketed to international investors as demand grows.

Following an ADIH 's landmark concept "Entertainment City" that is currently being implemented in Qatar and India, an Style City Advisory Board has been created to include major names in the fashion and style industry as well.

By Querubin J. Minas

© The Saudi Gazette 2008