Abu Dhabi grants Bahrain $101m to build North City

Upon completion of the project, North City will be the heart of Bahrain and made up of a new set of man-made islands

Representational image.
Representational image.

Abu Dhabi Fund for Development (ADFD) has awarded Bahrain a $101m (AED374m) grant to begin building a new city within the Gulf state - North City (Al Madina Al Shamliya).

Upon completion of the project, the new city will be the heart of Bahrain and will be made up of a new set of man-made islands - representing a major step forward in the city state’s development.

The first phase of the project, which will see the construction of the island itself, is worth $101m (AED374m), news agency WAM reported.

The second phase, worth $680m (AED2.5bn), is dedicated to building the initial 2,694 houses.

Basim Bin Yacob Al Hamer, Minister of Housing from Bahrain, said: "The UAE is a committed friend and partner in our ambitious development efforts and today’s agreements are another step forward in this partnership.

“We are hugely appreciative of this funding, which will help us achieve some of our chronic housing shortages here in Bahrain. And the North City project is part of a much broader plan to build 40,000 new homes for our people.”

“I hope that such economic and social development, such as with our new airport, will be a catalyst for national and regional growth,” he added.

Mohammed Saif Al Suwaidi, director general of ADFD, said: “The North City is an important project, which will be an economic boost to Bahrain through new construction opportunities, as well as easing urgent overcrowding issues.

“This grant is part of our wider commitment to the government and people of Bahrain, as the country continues to rapidly grow and confront new development opportunities and challenges. We look forward to seeing this scheme come to fruition."

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