Tunisian legislators endorsed a draft law paving the way for the country's biggest ever inward investment deal, a $14 billion luxury real estate development north of the capital, an official source said.

Sama Dubai, the property unit of Dubai Holding, will lead the project for apartments, offices, trade centres and hotels covering 837 hectares beside a lake north of Tunis, said the official, who declined to be named.

'Tunisia's parliament and chamber of advisers adopted a law concerning the Sama Dubai project, the biggest and most important investment in the country's history,' he said.

The plan will create thousands of jobs and work will begin soon, the official added. He did not give further details such as the duration of the project.

Analysts say the North African country is struggling to lure foreign investors to spur stronger growth, crucial to reducing a jobless rate of 14.3 per cent.

Inward investment in Tunisia totalled $4.2 billion over the past five years.

The government has set a goal for foreign investment of 1.3 billion dinars ($1.0 billion) this year, versus 1.2 billion in 2006, excluding privatisation revenue.

 A Tunisian newspaper said early last month that a Dubai deal was in the works and that it would create 150,000 jobs for Tunisians.

Several large-scale North African projects funded by GCC investors have been mooted in recent years, but many are facing long delays in being approved.Reuters