Two banks in the United Arab Emirates have signed a 900 million dirham ($245 million) loan facility to fund construction of a three-tower real estate project adjacent to Dubai's main thoroughfare.
Dubai's real estate sector has been showing signs of recovery in recent months, with prices rising and new projects being announced. Prices had tumbled by more than 50 percent from their 2008 peak at the height of the property boom.
Monday's statement from Dubai lender Emirates NBD (ENBD) said that ENBD and Abu Dhabi's First Gulf Bank had provided the funding to local developer Abdulsalam Al Rafi Group to build Burj Al Salam Towers.
The three-tower development, sited alongside the six-lane highway that runs through the heart of Dubai, would include commercial and residential towers and a hotel to be managed by Starwood Hotels under the Sheraton Dubai Tower Hotel name.
The first two towers would be completed in September, with the hotel to be ready in March 2014, the statement added.
No terms for the financing were given in the statement, except to say that the loan was split equally between the two banks.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.