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Mon 24 Oct 2016 02:17 PM

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Turkey's Gunal said to be close to $218m loan for Dubai project

Contracting firm is building a hotel and apartment complex as part of Dubai Canal project

Turkey's Gunal said to be close to $218m loan for Dubai project

Turkish contractor Gunal is close to securing a loan of around 800 million dirhams ($217.8 million) for the building of a hotel and apartment complex in Dubai's Business Bay area, sources familiar with the matter told Reuters on Monday.

Abu Dhabi Commercial Bank is arranging the six-year syndicated loan, the sources said, adding that Gunal is keen to close the deal by the first week of November.

Gunal declined to comment when contacted by Reuters.

Gunal was among the contractors awarded a contract in 2013 to build the first phase of an extension of the Dubai Canal, a 3-kilometre stretch of waterway between Dubai's Business Bay and the coast.

Business Bay is a high-rise district between the canal and Dubai's downtown area, home to the world's tallest building, the Burj Khalifa.

A flurry of contracts ahead of Dubai's hosting of the World Expo 2020 event is helping support business in the emirate's construction market, even as lower oil prices stall some projects in the region.

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