The course and precinct will form a key element of the island city development in Bahrain.

In addition to the 18-hole course, designed by Ernie Els, the plan will include a luxury hotel and residential villas, a club house and a health centre.

Durrat Al-Bahrain features 15 inter-connected islands off the southern Bahraini coast. When completed in 2010, it will be the size of the capital Manama. It is expected to have more than 60,000 permanent residents and up to 4,500 visitors a day.

The development is owned by the Durrat Khaleej al-Bahrain Company, in which the government of Bahrain and Kuwait Finance House each hold a 50 per cent stake.