UAE property companies sign infrastructure deal with Iraqi government

Abu Dhabi’s Bloom Properties and Dubai’s Damac Properties have both signed a contract with the Iraqi Ministry of Construction and Housing to be a part of the war-torn country’ major infrastructure rebuilding projects during the Cityscape Global 2012 event in Dubai, UAE’s Arabian Business reported on Friday.

Included in the Abu Dhabi deal is the construction of commercial and residential units, schools and sports club for Iraqi government personas.

Damac Properties, on the other hand, will focus on constructing residential and commercial projects in the city of Baghdad and the surrounding region, adding that they have also recently opened a branch office in the city.

“The process of reconstructing Iraq requires the collaborative efforts of diverse industries to ensure the development of infrastructure and self-contained communities,” said Iraqi Minister of Construction and Housing Mohammed Saheb al-Darraji, as quoted by the Arabian Business.

“Our agreement with Bloom acknowledges and applauds the key role that the master developer continues to play in restoring real estate sector in Iraq,” he added.

“The agreement comes at a time when Bloom is expanding upon its strategic vision and pursuing high-growth markets in the region,” Bloom Properties CEO Simon Azzam was quoted as saying in the report.

Earlier this year, Bloom Properties was assigned by the Iraqi government as the master developers for a project that consists of 40,000 houses, schools, universities, clinics, hospitals mosques, retail outlets, sports fields, recreational centers, gardens, parks, hotels and hotel apartments.

In June, Bloom Properties made an announcement on the completion of construction on its Bloom Gardens project, which will have over 300 villas. Handover of its phase one, comprising of 123 villas, has begun in June.

He added that “Iraq is clearly one of the most important destinations that we have earmarked for growth. Our experience also indicates our ability to close the gap in market demand for high quality real estate developments.”

Damac Properties chairman Hussain Sajwani remarked that “Damac Properties is delighted to be invited to work with the Iraqi government on these forthcoming projects. This is a significant agreement which will allow us to take the Damac Properties commitment of luxury and quality to a new territory.”

On Wednesday, an announcement has also confirmed Dubai’s Emaar Properties’ similar deal with the Iraqi government.

Iraq has a $2 billion budget for infrastructure and housing projects in 2013, needing 2 million new housing units.

Darraji was quoted in the Arabian Business report that “Iraq has seen significant changes to regulations and the governing of economic activities. The new laws promote fresh investment and this transition will promote the rapid restructuring of our economy.”