The multi-billion dollar project will create a city housing 400,000-750,000 people and offer about 150 plots for hotel development. The first phase, which is scheduled for completion in five-10 years, covers 10 districts encompassing 31 square miles. The areas will be made up of mixed-use residential, commercial and tourism neighbourhoods running from Palm Jebel Ali to the border with Abu Dhabi emirate, partly on reclaimed land. This phase will include Al-Burj, set to be one of the world's tallest towers. Al-Burj was formerly known as Pinnacle tower and was to be located on Palm Jumeirah (MEED 7:01:05).

The second phase, named Arabian Canal, comprises a 75-kilometre manmade creek, beginning at the start of the waterfront, stretching into the desert and surrounding Dubai's proposed second airport at Jebel Ali before connecting with the Gulf along the southern channel of the Dubai Marina. As a separate project, Arabian Canal will also provide investment opportunities to develop land on both banks of the manmade creek. Sources close to the project suggest the second phase could take 25 years to complete.

In total, Dubai Waterfront and the associated canal will add 375 kilometres of new shoreline. 'We only have 60 kilometres of beach in Dubai, so we want to extend the coastline,' said Dubai Crown Prince Sheikh Mohammed bin Rashid al-Maktoum, announcing the plans. 'This is the largest project so far in Dubai and the biggest waterfront development in the world.' Speaking to potential investors, Sheikh Mohammed added that plans to link the natural Ras al-Khor creek with Arabian Canal are also under study.

Nakheel will have an overriding 51 per cent share in DWC, with strategic investors making up 30 per cent and other investors 19 per cent. Investors have also been promised a 44 per cent return on investment from land sales. Officials say that the names of the remaining shareholders will be finalised by mid-February. Partners will initially be required to pay 50 per cent of their investment up front, with the remaining 50 per cent deferred over five years.

Nakheel is looking for 10 founding shareholders, each taking a 4.9 per cent stake in the project. As part of the deal investors will be given discounted rates on land allocation and preferential options on unsold plots on Palm Jebel Ali. Investors will also have the opportunity to maximise revenues from downstreambusinesses, as DWC will also create various subsidiaries handling administrative aspects of the city ranging from leasing and financing to cooling, landscaping and maintenance.

According to Nakheel, detailed designs for the project are yet to be completed. However, basic infrastructure packages are expected to be issued for bid in the first half of the year. Tenders are likely to be divided into three packages: expansion and extension of the waterfront; roads, electricity, water supply and sewerage systems; and ground levelling and preparatory earthworks.

The project's conceptual masterplanning has been in progress for two years and was carried out by an international consortium of architects, planners, urban developers and financial advisers. Those involved include: Michael Graves & Associates, Davis Brody Bondand Gruzen Samton, all of the US, and the Netherlands' MVRDV.

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