Sharia-compliant Damac project phase one sold out

Damac Properties is offering a limited release in its sharia-compliant serviced hotel apartments project, Ghalia, after a sold-out phase one.

Construction of the project is underway, and will be operated by Damac Hotels & Resorts, which is the hospitality arm of Damac Properties.

The 38-storey tower in Jumeirah Village will offer 742 keys, with furnished units ranging from studio, one, two and three bedroom apartments, with prices starting at AED 550,000 (US $150,000 approx).

Damac Properties managing director Ziad El Chaar said: "The demand arising from halal tourism is gaining traction in Dubai, with a significant number of visitors from the GCC, and most notably Saudi Arabia, who seek luxury accommodation options, which are also sharia-compliant.

"Saudi tourists represent the largest number of visitors from the GCC, with 1.5 million visiting Dubai last year and this number is expected to reach 2.5 million by 2020. Considering the demand for such accommodation along with the limited supply, we at Damac Properties, see this scenario as a huge opportunity to tap into."

El Chaar added: "Similarly, for investors, this translates into a lucrative investment due to the potential rental yields whilst being in compliance with the financial principles of sharia."

According to findings from the State of the Global Islamic Economy Report 2015/2016, the market for Muslim travellers was worth $145 billion last year, representing 11% of the global travel market, and is expected to grow to $233 billion by 2020.

The UAE ranks second after Malaysia amongst the top global destinations for halal tourism.

“Ghalia presents a niche opportunity - to invest in Dubai’s growing hospitality market through a vehicle that is in-line with the principles and beliefs of many of our customers," noted El Chaar.

Ghalia will have separate ladies’ and men’s gymnasiums and swimming pools as well as dedicated dining areas for families and single men.

Furthermore, the development will feature ladies-only floors, served by female-only staff. The furnished luxury apartments will comprise fully-equipped kitchens and daily housekeeping services.