Dubai's Alabbar to Develop Tourism Projects in Indonesia

18.07.2024 - 14:03 / skift.com / Josh Corder / Mohamed Alabbar

One of the most powerful real estate developers in the Gulf is partnering with the Indonesian government to boost its tourism sector.

Eagle Hills, chaired by Emirati billionaire Mohamed Alabbar, has agreed to a $3 billion pact with Indonesia, working to build new airports, hotels and wider tourism infrastructure.

Indonesia’s Ministry of State-Owned Enterprises and Eagle Hills will create a $3 billion “cooperation” together, according to Indonesian state news. It is unclear how much money each party is putting in.

It’s a tentative deal right now: It only has a validity of one year and does not lay out any specific timeline for construction or how the money is being used. But it does have the “possibility of extension through mutual agreement.”

The deal is also expected to see renovations for Soekarno-Hatta International Airport and various state-owned hotels in the country, bringing them up to “international standards.”

“This partnership aligns perfectly with our national strategy to diversify our economy and establish Indonesia as a premier global tourism destination,” Indonesia’s minister of state-owned enterprises, Erick Thohir, said. 

It is the latest in a string of billion-dollar deals for Alabbar, known for creating Emaar in Dubai. Emaar is the developer behind the world’s tallest building, the world’s largest mall, and a string of luxury hotels across Dubai, including the Armani Hotel.

Eagle Hills, based in Abu Dhabi, is effectively his international development business.

In the past year, Eagle Hills signed deals worth $1.5 billion to build a golf resort in Baghdad; a $4 billion real estate project in Bahrain; $3 billion for a waterfront development in the Latvian capital Riga, including more than 1,000 hotel rooms; and a $5.5 billion development in Budapest. The company also operates in Albania, Egypt, Serbia, Morocco, Oman, Jordan, and Ethiopia.

The majority of Eagle Hills’ developments formed part of larger agreements between the UAE government and other countries.

At the Skift Global Forum East 2023, the former president of Atlantis Resorts, Tim Kelly, said if a UAE operator like Atlantis wants to go overseas, it has to work directly with governments first as the cost to build that sort of product is so large.

Kelly said: “When we [Atlantis] go into a destination, we go to the community, we go to the government and we tell them we want to put an Atlantis there. It’s not a case of investors telling us they want an Atlantis, it doesn’t work that way.”

“We need alignment at a government level. After that, we look for the investors. If you go money first, it’s not the same. We form connections with governments, make sure we align with values and look for the money.”

For 2023, Dubai saw 17.15