Syndication of the $700 million loan is expected to be launched soon among local banks. The remaining $400 million will be in the form of equity, with $200 million being provided by the local Istithmar– the investment arm of Nakheel – and the remainder from Kerzner.

The financing deal will be the biggest ever undertaken in the UAE for a tourism project. It will also be the first time that project financing will be secured to fund one of Dubai’s major tourism developments. ‘This is the first deal of its kind here,’ Butch Kerzner, chief executive of Kerzner International, told MEED on 23 June (see Construction).