A new multi-purpose development will be built on an area of 1.27 million sq ft in Dubai South, according to a memorandum of understanding (MoU) signed by Dubai South, the master developer of an emerging 145-sq-km master-planned city around the new Al Maktoum International Airport, and Dubai-based developer Deyaar.

The new development, which will be owned 50 per cent each by Dubai South and Deyaar, features residential units, shops, retail outlets and hospitality facilities, said a Wam news agency report.

The agreement reflects Dubai South's commitment to building an exceptional destination for living and investment, said Ahmed Al Ansari, acting chief executive officer of Dubai South, who signed the agreement with Saeed Al Qatami, chief executive officer of Deyaar.

The new partnership will allow Deyaar to meet the increasing demand on residential and commercial units and hospitality facilities, Qatami said.