Bin Zayed International Withdraws from RM40 Billion Langkasuka Project
Bin Zayed International LLC, a subsidiary of Dubai-based conglomerate BZI Group, has officially withdrawn from the RM40 billion 99-island Langkasuka project in Langkawi due to limited growth prospects.
Reason for Withdrawal
According to BZI Group’s managing director, Sheikh Midhat Kidwai, the company initially viewed the project as a potential investment, but since 2022, the company no longer sees value in it and has decided to pull out. "Initially, we viewed the project as a potential investment, but since 2022, the company no longer sees value in it and has decided to pull out," he said.
New Focus on Other Opportunities
The company is now concentrating on other opportunities and real estate projects that offer a faster return of investment. Sheikh Midhat said that several opportunities have been identified, including one in Kulim, Kedah, where there is ready infrastructure. Two other projects involving the firm are pending approval from the Kuala Lumpur City Hall.
Expansion Plans
Sheikh Midhat added that the company plans to expand within the region, starting with Malaysia and Singapore, followed by potential projects in Indonesia and Thailand.
Background on the Langkasuka Project
Bin Zayed International previously entered into an agreement with Widad Business Group Sdn Bhd in March 2021 to form a special purpose vehicle called Widad BZI Sdn Bhd for the Langkasuka project. The joint venture was reported to have been for the development of a cluster of 99 islands at a cost of US$9.6 billion (RM40.2 billion).
Project Details
The project, expected to be completed within the next 15 to 20 years, will span 800ha with nearly 90% of the area located in the sea near Padang Matsirat. Widad Business Group will also reclaim land and develop a 405ha man-made island, which will account for 50% of the total area.
Conclusion
Bin Zayed International’s withdrawal from the Langkasuka project marks a significant shift in the company’s investment strategy. With a focus on faster-return projects, the company is poised for growth and expansion in the region.
FAQs
- What is the reason for Bin Zayed International’s withdrawal from the Langkasuka project?
Bin Zayed International has withdrawn from the project due to limited growth prospects. - What is the company’s new focus?
The company is now concentrating on other opportunities and real estate projects that offer a faster return of investment. - What are the company’s expansion plans?
Bin Zayed International plans to expand within the region, starting with Malaysia and Singapore, followed by potential projects in Indonesia and Thailand.