Fitch estimates phase 1 of the project, which includes the construction of 5,000 residential units, four hotels, two golf courses and retail and leisure facilities, will require a total investment of $2,100 million. The gross development value of residential properties due to be completed by 2013, when the principal payment is due, will be $3,000 million, according to Fitch. Residential sales are expected to finance repayments on the notes, with the remaining real estate and facilities as security.

The Blue City is a 34-square-kilometre mixed-use project under development along the coast at Al-Sawadi by Bahrain’s AAJ Holdings. Al-Sawadi Investment & Tourism Company is developing the $15,000 million-20,000 million project (MEED 7:4:06).