Nakheel has formally signed the AED1.2bn ($327m) contract to build the Nakheel Mall on the Palm Jumeirah with local construction companies United Engineering Construction (UNEC) and Actco General Contracting Company.

The two companies were awarded the contract in May this year. The 418,000-square-metre mall will have five retail levels with more than 100,000 sq m of retail space, three basement parking levels with 4,000 spaces, 300 shops, two anchor department stores, a nine-screen cinema, medical centre and fitness complex. There will also be a roof plaza with food and beverage outlets. The project is expected to be completed in 2016.

Nakheel also plans to build the 50-storey The Palm Tower alongside Nakheel Mall. A separate construction contract will be awarded for the hotel and residential tower. In June, Nakheel signed a letter of intent with Hong Kong-based Shangri-la Hotels & Resorts to manage the property.

Nakheel Mall is one of several new retail projects being developed by Nakheel. Others include a 620,000 sq m mall and a night souk at Deira Islands, The Pointe at Palm Jumeirah, extensions to Dragon Mart Mall and Ibn Battuta Mall and retail centres at five Nakheel communities across Dubai.