December 11 2018

Dubai-based firm Al Nakhil to invest in Zanzibar tourism

Source: The Exchange – Africa's Investment Gatway

Property developer Al Nakhil is looming at seizing investment opportunities available in Zanzibar, as both countries look to cement their bonds. Zanzibar President Dr Ali Mohamed Shein has assured the Emirati investors of support, peace and security on investments in the tourism sector, the country’s arguably economic mainstay.

The Head of State met with the company’s construction company chairman Sheikh Ali Rashid Ahmed Lootah at the State House to hold business talks. Dr Shein noted, “Zanzibar has many investment opportunities in the tourism industry which are yet to be exploited, so investors are welcomed to utilise the opportunities available.”

He affirmed the government’s stance in building the sector as it plays a crucial role in contributing to economic welfare. The tourism industry contributes more than 80 per cent of Zanzibar’s foreign exchange earnings and 27 per cent of the island’s Gross Domestic Product (GDP), proving to be a pivotal pillar in the nation.

Zanzibar has a tourism target of attracting 500,000 tourists in 2020 with the larger percentage coming from the Far East countries. Indonesia, Philippines, China and India are the target market with the massive potential to promote the country’s sector. Tapping into these markets will increase tourism earnings which stood at $350 million in 2017.

Al Nakhil company is one of the largest construction firms in the United Arab Emirates (UAE) established in 2001. The company has undertaken master developments projects including Palm Jumeirah, The World, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City, Jebel Ali Gardens and Nad Al Sheba.

The business’ impact in Zanzibar is significant and equally important to attract tourists and investors. Improved infrastructure is a business bait as it minimises operation cost, open the business to untapped markets and facilitate trade. The efficient flow of goods and people boosts smooth operation of businesses and leads to a better return on investments.

Sheikh Ali Rashid Lootah applauded Zanzibar for its efforts in creating a conducive business environment similar to its mainland, Tanzania. The strategies to boost tourism sector have attracted Dubai investors to eye business opportunities in the industry. He added that his company is eager to work with the government to achieve the tourism goals.

Zanzibar Islands competes with other Indian Ocean islands such as Seychelles, Reunion, and Mauritius. Zanzibar has at least 6,200 tourist hotel beds in 6 classes of accommodation.

Nakheel announced a net profit of $1.05 billion for the first nine months of 2018, down from $1.08 billion in the same period last year, the Arabian Business recorded. Previously, the construction developer unveiled the UAE’s first floating swimming pool, 50 metres offshore in the waters of the Palm Jumeirah in the Arabian Gulf.

Middle East Investment continue to increase in Tanzania and across East Africa, as the region is reckoned to be a preferred investment hub in Africa.