Despite and economic slow down in the gulf, Dubai is not going to stop its plan of building the largest shopping mall. The project named Mall of the World will continue as planned.
The project is going to be covering more than 8 million square feet area. In this mall, there will be thousands of shops which will be connected to the theme park, apartment buildings with 20,000 rooms and 100 hotels. The idea for this Mall of the world was first introduced in mid-2014, that is the same time when oil prices around the world started collapsing gradually.
Dubai is not dependent on oil money as the revenue generated by Oil and Gas contributes less than 5 percent to Dubai’s economy. Rather Dubai relies on diverse industries like tourism, hospitality, retail and goods trading.
Mall of the World is not a small and simple project, the structure and design are large and complex. As per the developer, the project will be built in different phases and any changes will be decided based on market situations.
The developer is optimistic about completing first phase of the project by Expo 2020 which will be about a quarter of the project’s size. Remaining phases will be completed afterwards.
Once the phase one is completed, depending on the market dynamics the further expansion will be carried out. The funding for the project will come equally from company’s internal resources, lenders and institutional investors.
The total cost of building this project will be around DH80 billion and out of this amount, Dubai Holding (the developer for the project) will spend Dh30 billion from its pocket.
“We’re talking to advisors, financial investors, sovereign funds, many people,” Byat said. “We have a lot of understandings with quite a few people. This is a mixed-use project which will be very interesting not only to locals but for the global market to invest in.”