The Ascott Group will manage two serviced residences in Bahrain and Qatar, and the two properties - the 118-unit Somerset Juffair Manama City in Bahrain and the 200-unit Somerset Corniche, Doha in Qatar - will be managed for 10 years with an option to renew the contracts for another 10 years.

The contracts are part of Ascott's master development agreement with Addax Investment Bank (Addax) signed in April this year to launch at least 15 serviced residences across the Middle East and North Africa by 2010. MENA Serviced Residence Holding BSC (C), to be renamed Nuzul Holding BSC (C), is the holding company set up by Addax in June this year to source for, acquire and develop the serviced residences.

Under the master development agreement, Addax will set up and manage a US$1 billion investment fund to finance the acquisition and development of the serviced residences. Ascott will manage the serviced residences, provide technical consultation on the development, design and renovation as well as create marketing and branding programmes for the properties.

The signing ceremony will be held today in conjunction with International Enterprise Singapore's (IE Singapore) office opening in Doha. IE Singapore is an agency under the Ministry of Trade and Industry spearheading Singapore's efforts to develop its external economic wing.

Prime Minister Mr Lee Hsien Loong will officiate at both events. Ascott's signing ceremony and IE Singapore's office opening are part of a business mission to Saudi Arabia and Qatar organised by IE Singapore in which Ascott is one of the 17 participating companies from Singapore.

Mr Cameron Ong, Ascott's Managing Director and CEO said: "The Gulf region is an important growth market for Ascott. Ascott has been looking at the region for several years and we have strong confidence in the market. The Singapore government's drive to promote greater cooperation between our countries is a strong signal that it is timely for Singapore companies to enter the region. Ascott's strategy is to gain a foothold in the key gateway cities in the Gulf Cooperation Council (GCC)."