Qatar to invest millions in a tourism complex venture deal in Cyprus

On Wednesday was signed an important agreement between Cyprus and Qatar about building of a multimillion dollar project, which will include a luxury hotel, offices and residential properties, in Nicosia, commercial center of Cyprus.

This agreement, signed by Qatar's Emir Sheik Hamad bin Khalifa Al-Thani and by Cyprus President Dimitris Christofias, represents a joint venture where each side will hold 50% share. Cyprus contributes the land and Quatar will pay in cash the equivalent of the property value, which, according to the Minister of Finance Charilaos Stavrakis, will most probably exceed the value of the land.

First phase of the project, the 5* hotel, is expected to be started already by the end of this year and due to be completed in 30 months. Estimated cost of the hotel is over 150 million Dollars (111.7 million Euro). Total estimated cost of the project remains undisclosed.

Cyprus was not a random choice for investment but was chosen due to the fact that the island's economics proved to be resistant during the global crisis. "We believe in the economy of Cyprus," said Mohammed Bin Ali Al Hedfa, Chief Executive Officer of Qatari Diar, Qatar's real estate investment company. Additional agreement was signed on forging closer air transport links.