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PETALING JAYA: Bin Zayed International LLC, a subsidiary of Dubai-based conglomerate BZI Group, has officially withdrawn from the RM40 billion 99-island Langkasuka project in Langkawi due to limited growth prospects.
BZI Group’s managing director Sheikh Midhat Kidwai confirmed that the company is no longer involved in the project, reported Berita Harian.
“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.
“The company is now concentrating on other opportunities and real estate projects that offer a faster return of investment,” he said after the opening ceremony of Bin Zayed International’s office at Tun Razak Exchange today.
Sheikh Midhat said 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.
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.
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).
In May, Berita Harian reported that the construction of the infrastructure for the project would commence in the last quarter of 2024.
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.