The Jebel Ali scheme is expected to have a big role in attracting services to the west of Dubai and will take some of the burden off the central business districts of Deira and Bur Dubai.
Hussein Nasser Lootah, the assistant director general for planning and building affairs in Dubai, said that his department had carried out several planning studies to select sites.
The studies followed guidelines set out in the Dubai masterplan, a government-approved framework for the development of the city.
Officials also announced that Dubai would try to provide increased opportunities for investors.
A fully-fledged investment area has been planned in South al-Barsha, with a total area of 120 ha. It will include 227 residential plots capable of accommodating 42,000 people.
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