UAE’s Eagle Hills adds Indonesia to global portfolio with $3bn deal

Abu Dhabi developer Eagle Hills Properties is looking to add Indonesia to its global portfolio. 

Mohammed Alabbar, the developer’s chairman and founder, and Erick Thohir, Indonesia’s minister of state-owned enterprises signed a memorandum of understanding this week.

The agreement includes plan to invest up to $3 billion to develop Indonesia’s tourism infrastructure assets, including property, airports and tourism destinations.  

The agreement will be effective for one year only, with the possibility to extend, the company said in a statement. No timeline was outlined for the investment.

Development of new tourism spots, and enhancing state-owned hotels and airport infrastructure, including the Soekarno-Hatta International Airport, are part of the deal. 

"Indonesia has significant potential due to its resources and tourism destinations,” Mohammed Alabbar said. 

“[We believe] Indonesia can be competitive and increase its proportion of the tourism sector’s contribution to the GDP [gross domestic product] – Eagle Hills would like to support this endeavour."

Eagle Hills, which operates in more than 11 countries across three continents, has a global projects portfolio valued at around $30billion. In May, the developer said it would invest $3.25 billion to redevelop a beachfront property in Latvia. It also plans to invest $4 billion to develop real estate in Bahrain. 

“This partnership aligns perfectly with our national strategy to diversify our economy and establish Indonesia as a premier global tourism destination,” minister Erick Thohir said. 

“We are confident that this collaboration will not only boost our infrastructure but also create significant employment opportunities and drive sustainable economic growth across our beautiful archipelago."