Dubai, July 12th, 2006 (WAM) - Dubai Waterfront, a subsidiaryof Nakheel, began reclamation work on the first of seven islandsto be reclaimed at the project.

The reclamation phase of the 310-hectare island marks one ofthe pivotal stages in the construction of the iconic development.

This activity assumes significance as it marks the actual 'waterbreaking' milestone. Work on the first island, worth more than$200 million, will be completed in the next 18 months, companyofficials said. The entire project will take approximately sixyears to complete.

Elaborating on the progress of the development and the detailsof the reclamation, Khaled Al Huraimel , Chief OperatingOfficer of Dubai Waterfront Company, said: "The awarding of thereclamation contract is another key milestone for Dubai Waterfront,indicating the fast pace at which the project is being developed.

This reclamation work on the first island is critical as it willpave the way for future development and reclamation work of therest of the islands. We shall also start work very soon on MadinatAl Arab, the first district zone and the nucleus of the entireDubai Waterfront development. When completed, Madinat Al Arabwill be the most sought after downtown area offering an unparalleledcosmopolitan lifestyle. Special attention will been given tothe quality of life within the development through planned roadsand other amenities that will measure up to the demands of therising population."The contract for the reclamation work has been awarded to JanDe Nul, a leading Belgian company specialized in dredging andland reclamation. The work on the first island of the developmentwill be executed mainly by Trailer Suction Hopper Dredgers thatwill transport sand offshore, approximately 20 nautical milesand ferry the sand towards the waterfront area where it willbe dumped or jetted into the reclamation area.

Speaking at the ceremony to mark this landmark event, J.P.J.

De Nul, Owner and Managing Director of Jan De Nul stated: "Dubaiis witnessing a tremendous growth and it is really exciting tobe involved such an ambitious and iconic project that will bea part of the legacy of this great city. This project representsa unique opportunity for our company and we look forward to workingon this dynamic development. " Matt Joyce commenting on the project said: "The constructionand reclamation of Dubai Waterfront is an incomparable logisticsoperation which has attracted many highly experienced professionals,all driven by the passion to bring this incredible vision tolife. Meticulous project planning and research, coupled withthe most efficient methods of construction, is being undertakento ensure that the world's largest waterfront development achievesits ambitious objectives and goals." More than 300 million cubic metres of sand and 12 million cubicmetres of rock to protect the seven islands will be utilizedfor the process. The first offshore island is about fifteen percent of the entire Dubai Waterfront project, which will coveran area of approximately 2,300 hectares.