UAE to invest in multimillion-dollar resort in Indonesia

The project will cost 500 million dollars
The Minister of Energy and Industry of the United Arab Emirates, Suhail al-Mazrouei

AFP/KARIM SAHIB  -   The Minister of Energy and Industry of the United Arab Emirates, Suhail al-Mazrouei

The United Arab Emirates (UAE) and Indonesia have signed business deals that include a multibillion-dollar resort in western Aceh worth $500 million. The total agreed projects represent the largest investment in Indonesia's history.  

The two countries signed the agreement during a visit by UAE energy and infrastructure minister Suhail al-Mazrouei to Jakarta last week. Aceh governor Nova Irían Syah signed along with the chief executive of Murban Energy. The Emirati company has already developed other luxury resorts, such as in the Maldives and Seychelles. 

According to Indonesia's Maritime Affairs and Investment Coordinator, development of the resort will begin in May in the Aceh region, Indonesia's only Muslim-majority region. Pangetan further stated that "I think within two months' time, we can see the progress of this project in the Singkil ". Indonesia's ambassador to the UAE, Hussain Bagis, explained that one of the considerations in choosing this region is that it is only five hours away by plane. 

The project is part of a $22.9 billion deal signed in Abu Dhabi during the visit of Indonesian President Joko Widodo in January last year. The deal includes not only the resort, but also other projects covering mining, energy and infrastructure, as reported by El Correo del Golfo. 

Joko Widodo, presidente de Indonesia
PHOTO/REUTERS - Joko Widodo, President of Indonesia

These projects include a $1.2 billion agreement between UAE-based Dubai Port and Indonesia's Maspion Group to develop a port and industrial zone in Gresik, Java.  These actions favour the diversification and expansion of the Emirate's economy beyond oil, the UAE's main activity and main source of wealth.   

For this reason, the aim is to reduce dependence on oil to 20%, as stated by expert Víctor Argüello, and to invest in renewable sources, such as solar panels, on which work is already underway in Abu Dhabi. Even if oil remains the main source of income. This year the Gulf country celebrates its 50th anniversary since the founding of the United Arab Emirates in 1971. The year 2020 was described as "the year of preparation for the next 50 years", and the Ministry of Foreign Affairs and International Cooperation described it as an exceptional year in terms of development and future prospects in all areas.