Arab City Delayed By Bureaucratic Red Tape

KUALA LUMPUR: Bureaucratic red tape may force the developer of Arab City, which is designed to be a symbolic gateway connecting Malaysia to the Middle East, to move from its site in Jalan Ampang in Kuala Lumpur to Melaka, which promises a 24-hour approval for the project.

Hesham El Din Fathi Mohamed, Managing Director of Golden Corporate Heritage Sdn Bhd, said Melaka Chief Minister Datuk Seri Mohd Ali Rustam had assured him that the state would facilitate all procedures for the company to invest in the state.

"He (Ali) told me, anytime you face a problem, you can walk in my office and my house is also open for 24 hours to fix the problem," the 45-year Egyptian told Bernama in an interview at his head office in Menara Ambank in Jalan Yap Kwang Seng recently.

Incepted six months ago as a joint venture between Dubai, Saudi Arabian and Malaysian partners, the company has branch offices in Dubai and Saudi Arabia with diverse interests in real estate, trading and oil and gas business.

Drawn by Ali's investor-friendly approach, Hesham said the company planned to invest more aggressively in Melaka, with initial investments of RM350 million.

"So, any place which gives us a good environment to invest and do projects, we will go for that. It will not cost the government a single penny to have the project here. We are paying and all projects will be financed by our company. So, I wonder why you ( KL authorities) are not helping us enough," he said.

The Melaka government, he said agreed to provide the company with a piece of land on the riverside, in the heart of the city, to develop the Arab City.

"For Arab tourists, it will be a short distance from the airport and better than travelling to Penang and Langkawi which will be crowded during the peak season. We find Melaka a good place given its rich historical background. The state government really wants to help us."

Hesham said the company was still waiting for approval from the relevant land authorities for its proposed request for a 33-year lease of the land located near the Saloma Bistro and the Malaysia Tourism Centre (Matic) in Jalan Ampang.

It had earlier expected to complete the project by June this year in time for the Arab summer break.

He said after several meetings, Tourism Minister Datuk Seri Azalina Othman took only two weeks to give the company conditional approval for the project to be located in Jalan Ampang, which is at the Golden Triangle.

"If the land department has problems with that piece of land, it must inform this company to find an alternative. But you cannot leave the situation hanging while people are spending overheads.

"So, we hope that things will get a little faster. We won't run away from the bureaucracy. We will fight it. We consider Malaysia as our country. As Muslim businessmen, we want to invest in a Muslim country."

The project, sited a few hundred metres from the iconic Petronas Twin Towers, will be a retail, business and lifestyle hub with a display of rich Arab food, culture and tradition in the heart of the city.

He said development cost of the project is estimated at RM35.4 million while operating cost is over RM150 million. The proposed Arab City enclave, which is to be equipped with state of the art security systems, will have a two-storey complex with 337 parking bays.

Among the facilities are an exhibition and convention centre which will host events throughout the year, ten restaurants, two coffee houses, bakeries and a supermarket.

The bazaar area will have more than 150 shops of international and local fashion brands, a multipurpose hall, prayer rooms, beauty salons and a theme park for families with children.

"The Arab city in Jalan Ampang will not just boost tourism but will also be a dynamic hub for attracting investments."

The project is expected to provide job opportunities for about 1,000 Malaysians while 200 Arabs are expected to run the business.

Hesham said the company expected revenue of RM8.8 million annually from the Arab City in Jalan Ampang.

With no approvals in sight from the authorities here, Hesham said the company had no choice but to start the Melaka project ahead of its earlier plan to have the Arab City in Kuala Lumpur.

"Within seven days from now, I will give my proposal for an Arab City in Melaka to the state government. Hopefully, I can start my project in Melaka next month.

"As for KL, I don't know who I am talking to and who is talking to who. These are all land matters. We are ready. Our people are ready to start on the construction. Our media campaign is also ready.

"Everything is ready. We had hoped to catch the Arab tourists during the Arab summer season in May or June. What's going on now is, if all approvals are not received by end of this month, and there is no way to catch them (Arabs) in this season, I would have to take all my attractions (Arab City) to Melaka."

Hesham said more than 1.2 million Arabs come to Malaysia each year to shop and spend time with their families because of a strong Islamic presence in the country.

The company has been in a limbo for six months, with overheads and other expenditure rising. He said todate, RM6 million, including RM3 million for overhead costs, have been spent with no results.

"We are willing to spend more, willing to be part of the society and to help bring business from the Middle East to Malaysia. But just open the door for us." --BERNAMA