Kleindienst Group, developer of The Heart of Europe megaproject on Dubai’s World Islands, aims to have all remaining hotels under construction by the end of 2025, founder and chairman Josef Kleindienst told Arabian Business in an exclusive interview.
The $6 billion tourism and hospitality development spans six man-made islands and will feature 20 hotels with more than 5,000 keys, along with themed resorts, floating villas, climate-controlled streets, underwater experiences and coral regeneration zones.
The Heart of Europe is the first major development to gain traction on the World Islands following years of inactivity after the 2008 financial crisis.
Fifteen hotels are in various stages of construction, with a few already completed or in pre-opening. The remaining five, including the planned Buddha-Bar Hotel & Floating Villas, are scheduled to break ground before year-end.
“Fifteen are under construction [at] different stages. The remaining five will start construction this year… Our goal is for all of them to be complete by 2027,” Kleindienst told Arabian Business.
Few hotels open, others nearing launch
The only fully operational hotel is the voco Monaco, an adults-only boutique property that officially opened last year. It features party suites, rooftop views and direct beach access. The Nice Hotel, also part of the Côte d’Azur resort, is completed and in its pre-opening phase, offering themed gardens, a rooftop pool, and retail along the “raining street.”
The Portofino Hotel, a five-star family-only resort, is currently under construction. It will feature 466 sea-facing suites, a kids’ club, annual cultural festivals, and a lobby housing over 500 aquariums.
Other partially completed or sold assets include The Floating Villas, Sweden Beach Palace at Sweden Island, and villas on Germany Island. Kleindienst said villas on Germany Island and the Sweden Beach Palaces are at an advanced handover stage, with interiors and landscaping nearing completion.
What’s next to break ground?
The five hotels still to begin construction in 2025 include:
- Buddha-Bar Hotel
- Ibiza
- Elizabeth
- Floating Lido & Empress Elizabeth
- Switzerland
Each new property will follow a two-year construction cycle post-mobilisation, Kleindienst said, aligning completion with the group’s 2027 target.
“When all of this is in place, and when all your approvals are coming in time, then you have a realistic chance to finish a hotel in two years. It’s challenging, but possible,” Kleindienst said.
Independent infrastructure powering construction
Unlike mainland developments, the World Islands lack municipal infrastructure. Kleindienst Group has independently mobilised construction logistics, including concrete batching plants, barge unloading zones, sewage treatment, a temporary marina, and accommodation for 3,000 workers.
“The World Islands are very complex in regards of improvements, because [they’re] not connected to the infrastructure and very specific in regards of environmental regulations,” he said.
The entire project must comply with a zero-discharge policy — one of the strictest environmental mandates in Dubai — requiring 100 per cent recycling of water and total containment of waste output.
“Nobody in Dubai has the burden of such high-level environmental regulation like the World Islands,” Kleindienst said.
Long-term, self-funded model
Kleindienst said the Heart of Europe is funded through a 50:50 model — half from the group’s capital and the rest from off-plan sales — with no bank financing involved. This gives the developer control over pricing and avoids pressure for fast sell-outs.
“We are not using bank loans… We invest 50 per cent of the project, and the other 50 per cent comes through off-plan selling,” Kleindienst said. “So we don’t need to satisfy a bank and we don’t need queues in front of our sales centre.”
“We have a target of how much we want to sell every month, and we have a target how to increase our price. And we follow this target. We follow this strategy.”
The group says investment interest remains strong, with guaranteed rental income options offered for hospitality units, fully furnished villas, and floating homes. According to project materials, some units offer a “100 per cent net ROI” for buyers, although this has not been independently verified.
The Heart of Europe is the only multi-hotel development active on the World Islands — a man-made archipelago once envisioned as a billionaire’s playground but mostly left undeveloped since 2008.
While more than 90 per cent of the 300 islands were reclaimed over a decade ago, the lack of roads, power, water, and investor confidence kept most plots idle. Infrastructure solutions are now under discussion with various public and private entities, Kleindienst said, though no centralised marine transit system has been confirmed.
In the meantime, the group continues to expand through standalone marine and construction systems. It announced an expanded masterplan at the end of 2024 that would increase Dubai’s five-star hotel room count by 10 per cent, adding 5,000 new keys — pushing the Heart of Europe’s total estimated project value to $6 billion.
“This is more than real estate. It’s experiential tourism. We’re building something that’s never been done before — and finally delivering it,” he said.
