Master developer Nakheel and Spain’s RIU Hotels & Resorts have signed a contract worth AED385 million ($105m) for the construction of a 800-room, joint venture beachfront resort and water park at Deira Islands in Dubai.

The resort, which has a total investment value of AED670 million, will be built by Bin Ladin Contracting Group LLC Dubai, according to a Nakheel statement.

The contractor was chosen from a shortlist of 10 contractors who bid for the project. Construction will be completed in two years, Nakheel said.

Nakheel has now awarded almost AED8 billion worth of infrastructure and construction contracts at Deira Islands, with more on the way.

Nakheel Chairman, Ali Rashid Lootah, said: “Today marks a key milestone for the Nakheel Hospitality, Deira Islands and Dubai. Our first international joint venture will bring a new dimension to Dubai’s hospitality offering by providing a new concept in accommodation and attracting a new market segment to the emirate. The RIU resort at Deira Islands is a shining example of our commitment to delivering a diverse range of tourism-related projects that will help the government achieve its 2020 tourism targets, and I look forward to seeing this exciting resort come to fruition.”

Joan Trian, RIU’s Financial Director, said: “Today we are a step closer to the opening of our first hotel in Dubai. We are sure that our loyal clients will want to explore the new offerings of the city with us, and we look forward to attracting new customers to our joint venture hotel, too. Nakheel has proven to be the best partner for our entry in to the Middle East market, and we hope it is the first of other projects to come. In fact, this is a great step forward in our long-term expansion strategy in the Middle East and South East Asia”.