Dubai World pulls out of Addis development
A US$100-million five-star luxury hotel development in Addis Ababa has been put on hold by Dubai World, the Dubai government owned conglomerate, whose majority stakeholder is Sheikh Mohammed bin Rashid Al Maktoum, because of global financial difficulties, according to the Capital newspaper.
The company had, according to reports, only recently signed a lease, to be paid in three instalments, for two plots of land in the city on which it planned to construct luxury hotels, a business hotel, serviced apartments and offices. The Capital reports that Dubai World had also expressed interest in other Ethiopian projects, including operating the Ethio-Djibouti railway and installing an oil pipeline.
Reuters reports that, according to Abu Dhabi daily The National, Dubai World had planned about US$1.5 billion of investments in Africa, the majority of which has now been suspended.