GCH TO INVEST RM400 MILLION IN MELAKA'S ARAB CITY

MELAKA (Malaysia), March 3 (Bernama) -- Golden Corporate Heritage Sdn Bhd
(GCH), will invest RM400 million (US$107.8 million) to develop an integrated
commercial project in southern state of Melaka featuring an Arab architecture
concept, said Chief Minister Mohd Ali Rustam.

The project, Arab City, will be the first of its kind in the world. It will
have three major locations -- Pulau (island) Melaka, Klebang and Sungai (river)
Melaka.

Its development includes shopping bazaars, Arabic themed restaurants and
cafes, Arabic health and beauty spas and an Arab village.

The project will be on a 90:10 joint venture basis with the state government
through the Chief Minister Incorporated (CMI) of Melaka. CMI will own the land.

The first phase of the project in Pulau Melaka on a 1.68 hectare (4.2 acre)
site, will cost RM150 million(US$40.4 million), Mohd Ali disclosed.

"The work will start by mid-March and is expected to be completed within 18
months or in December 2010," he told reporters after the ground breaking
ceremony here Tuesday.

"This particular investment and project will also inject enthusiasm into the
tourism sector in Malaysia, especially for Melaka," he said.

Mohd Ali said a total of 272,490 tourists from the Middle East visited the
country last year, an increase of 6.9 percent compared to the previous year.

Melaka, he added, received in turn a total of 26,160 Middle Eastern tourists
in 2008.

Meanwhile, GCH managing director Hesham El Fathi said the company was
still carrying out due diligence on the projects in Klebang and Sungai Melaka.

"We want to ensure that the Arab City project receives global attention to
draw tourists," he added.

He also said that he expects the project to generate returns within five
years.

GCH is a joint venture among Dubai, Saudi Arabian and Malaysian partners.

It has branch offices in Dubai and Saudi Arabia with diverse interests in
real estate, trading as well as oil and gas.
--BERNAMA