Pakistani media had hell of a time last week congratulating Bahria Town and Malik Riaz over making a $45 Billion deal with Abu Dhabi Group, one of the investments arms of HRH Sheikh Nahayan Mabarak Al Nahayan of Abu Dhabi, UAE.
The newspapers publishes quarter page advertisments for many days congratulating Malik Riaz on his spectacular achievement that would bring prosperity and good fortunes to Karachi, generating jobs for thousands and injecting much needed cash in the feeble economy of Pakistan.
Arabian Business, leading Business Portal in the GCC, reported the news quoting Pakistani media:
A Pakistani construction tycoon signed a multibillion dollar deal with Abu Dhabi Group to build the world’s tallest building in Karachi, Pakistani media reported.
Malik Riaz, the founder and chairman of Bahria Town, one of Asia’s largest private real estate developers, signed a US$45bn deal with the Abu Dhabi-based investment company to build projects across Pakistan.
Around US$35bn will be spent in the Pakistan province of Sindh while the remaining amount will be invested in Islamabad and Lahore, Geo News reported. The report claimed the projects will create jobs for 2.5m people.
“We have selected the site for our mega project which will be spread over 16,000 acres of land and also house 125,000 houses,” Riaz said.
“This construction project will bring in staggering investment into Pakistan and it will benefit industries and people. My dream is to create a new Pakistan and new Karachi,” he added.
Sources indicated to the news outlet that the project is likely to be in built on Kutta Island, an island located some distance off the coast of Karachi. No details on the funding, time frame or height of the development were provided, although it was reported that it would trump Dubai’s 828m Burj Khalifa, completed in 2010.
The report did not include confirmation from Abu Dhabi Group, which according to Bloomberg is chaired by UAE Minister of Higher Education and Scientific Research Nahayan Mabarak Al Nahayan. The company’s investments include in banking, real estate and telecommunications in Pakistan, Bangladesh, Iran and Africa.
Burj Khalifa is set to lose its crown as the world’s tallest building in the coming years. Jeddah’s Kingdom Tower, backed by Saudi Arabian billionaire Prince Alwaleed bin Talal, is set to reach over 1km in height when completed in 2017.
However, it all turned out to be another castle in the wind. Abu Dhabi Group has categorically denied any agreement with Bahria Town. It has stated that they have signed a Memorandum of Understanding to prospect any invsetment opportunities in Karachi, but it has now been cancelled.
So much for Mr. Tycoon Riaz and his gang of opportunity seekers.
Also shows Karachi is not a safe place to invest.
The clarification statement by Abu Dhabi Group as published in newspapers today.