Cairo - A firm from the United Arab Emirates plans to construct a five star hotel with a capacity for 3,000 guests in the Iraqi sacred city of Karbala, a news report said Monday. The name of the firm was not revealed, according to the Voices of Iraq news agency, but construction will begin next year.
The city, located about 100 kilometres south-west of Baghdad, is sacred to Shiite Muslims and attracts many religious pilgrims.
UAE investments in Iraq are estimated to make up a quarter of all foreign direct investment in the country.
However, the Gulf country's own property sector has taken massive hits in the global recession. Last week, Dubai World, a UAE giant with development sectors, asked for a six-month freeze on all debt payments.
