| A rain of foreign investment projects in Tunisia |
| Local news |
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A Dubai development company has announced a $25 billion deal for the largest-ever foreign investment project in Tunisia, pledging to build a new city near the capital. The planned town, called "Gateway to the Mediterranean," will spread 2,470 acres (1,000 hectares) along the shore of Lake Tunis and include skyscrapers, tourist resorts, theaters, and housing for over 300,000 people, said Sama Dubai, the group developing the project. The cost estimate of $25 billion is twice as big as Tunisia's annual government budget. The company and the government announced they had agreed on the deal during a ceremony late Friday. Sama Dubai's Chief executive, Farhan Faraidooni, said his group had chosen Tunisia because of its proximity to Europe and its appeal to international businesses. European aircraft manufacturer Airbus' recent announcement that it would build a factory in Tunisia "only comforts us in our choice," Faraidooni told reporters. Mohammed Nouri Jouini, the minister for foreign investment, said the project should add 0.6 points to Tunisia's economic growth rate, which is estimated to reach 6.3 percent annually over the next decade. He said building the new town will create 50,000 jobs. The project should take 15 years to complete, said Sama Dubai. The company belongs to Dubai Holding, a group owned in part by the royal family of the Gulf emirate. Dubai Holding owns several luxury hotels, including the famed Burj al-Arab, and is currently building a tower, Burj Dubai, expected to be the world's tallest. Small, relatively stable Tunisia is a popular destination for European tourists but has sought to boost international investment in other sectors. Oil-rich Arab states such as Saudi Arabia and the United Arab Emirates have shown increasing interest in investing in Tunisia in recent years. The Airbus announcement of a new factory in Tunisia comes amid efforts by its parent company, EADS, to improve competitiveness and compensate for the euro's rise against the dollar. |
