Ossis Property Developers has announced plans to build a replica of Egypt's Sharm El-Sheikh resort in Bahrain at a cost of about $130 million.

"The project, Fanar Beach, includes hotels and restaurants, and will be built in partnership with foreign firms," said Saud Kanoo, chairman of the private holding firm.

"They will run the hotels which will be built in different models to attract more foreign and Arab tourists to Bahrain."

The resort forms part of the Amwaj Islands project launched last year and will be built on the west side of the development.

The project will also include a boutique hotel, a 100-berth marina and a shopping mall.

Ossis, owned by Gulf Arab investors, is developing the Amwaj Islands about 2 km northeast of Muharraq Island.

The artificial island, which will secure 3 million sq m of land with a beachfront of 9.5 km, aims to create a self-contained community complete with all amenities including an amusement park, cinemas, bowling alley, health clubs, skating rink, restaurants, hotels, motels, marina club and resorts.

Ossis is currently in negotiations with three international groups to develop a 'Smart City' at Amwaj. "The project will use fibre-optic technology so that each room in a hotel is an office in itself and the same facilities will be replicated in the villas," said a spokesman for Ossis.

Early this year, Ossis launched plans to build a 'floating city' in a bid to recreate Venice at the Amwaj. To be built on the east side of the development, it will feature Venetian-style canals and gondolas.

The consultant on the project is the Australian group Davenport-Campbell operating out of Malaysia.