DUBAI, Oct 13 (Reuters) - Sunrise Properties has secured a 515 million dirham ($140.22 million) Islamic loan for the development of a luxury hotel project, banking group Emirates NBD, the main arranger of the deal, said on Tuesday.
Emirates NBD, joined by Doha Bank, are providing the money to finance the Emerald Palace Kempinski Hotel project on Dubai's Palm Jumeirha group of islands.
Nver Mkhitaryan, the promoter of EPG Hotels & Resorts and Sunrise Properties Limited said the project financing showed the banks' confidence in Dubai's tourism market.
The emirate's shopping malls and hotels, with attractions such as an indoor ski slope and aquarium, helped to boost tourist numbers last year.
The number of visitors rose 8.2 percent to 13.2 million in 2014, but they are widely expected to fall this year due to a strong dollar, weak currencies in Europe and Russia and the impact of lower oil prices on consumer confidence in some of Dubai's tourist markets. The dirham is pegged to the dollar.
The government has not yet announced 2015 first-half tourist figures.
Bank lending to real estate sector remains buoyant, with credit to the construction and real estate sector totalling 216.2 billion dirhams in the second quarter of this year from 210.6 billion dirhams in the year ago period, according to the latest central bank data.
The tenure and margin on the loan were not disclosed.
The deal was done as a murabaha, a cost-plus-profit arrangement which is one of the most popular formats for structuring Islamic loans. ($1 = 3.6729 UAE dirham) (Reporting by Archana Narayanan. Editing by Jane Merriman)