The Dubai Festival City will have a multi-billion-dirham golf course community as part of its large-scale, mixed-use development.

Al Futtaim Investments, which is developing the project, is finalising negotiations with Al Naboodah Contracting for the golf course. The project will open by the end of 2003.

The first phase will include an initial investment of Dh500 million ($136.24 million) for the construction of an 18-hole recreational course and 200 residential units with associated facilities, said Al Futtaim Group CEO Omar Al Futtaim.

Plans for the project began to take shape after Al Futtaim commissioned the International Management Group (IMG) to conduct a feasibility study on the golf course market in Dubai.

Dubai Festival City is being developed on a 1,200-acre site at the base of the Garhoud Bridge along the Dubai Creek.

The unique waterfront development will have entertainment, dining, shopping, marina, hotels, residential and office components.

On-site construction is scheduled to begin this September and the first phase should open in 2006.