(Bloomberg) -- Dubai Holding LLC, the investment firm owned by the emirate's ruler, is set to announce a development close to its iconic Burj al Arab hotel, according to a person with knowledge of the plans.
Downtown Jumeira will include a 550 meter high tower called Burj Jumeira, the person said, asking not to be identified because the plans are private. The project could be announced as soon as this week and construction will start immediately, the person said.
The development in the Al Sufouh district of Dubai will include homes, office space, as well as hotels. The first phase is due to be completed in 2023, the person said. There have been previous attempts to develop the site.
Read more: Dubai Real Estate Reality Check Felt by $20 Billion Project
The development comes as Dubai Holding is exploring investment opportunities abroad. For many years, the company was mostly focused on selling assets and restructuring debt after a property-led crisis. The firm, which owns Dubai Properties Group LLC and hotel operator Jumeirah Group LLC, is one of three main state holding companies in the emirate.
Still, the government-backed company is starting the project as a long-running property slump looks set to continue for a couple more years as a record number of new homes come onto the market. Dubai's residential values have slid about 25 percent from the 2014 peak, including a 10 percent drop last year. Jones Lang LaSalle expects values to decline by 5 percent to 10 percent this year.
Read more: In Dubai, Avalanche of New Homes Extends Property Slump
To contact the reporter on this story: Archana Narayanan in Dubai at anarayanan16@bloomberg.net
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Claudia Maedler
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