Bahrain Bay Development today launched a masterplan for a $2.5bn (£1.3bn) waterfront project in Bahrain.

The developer, a joint venture between Arcapita Bank and a Bahrain-based investment group, plans to develop a residential, commercial and retail district called Bahrain Bay on the northeast shore of Manama. The scheme will also include the Kingdom's first Four Seasons Hotel and Arcapita Bank’s headquarters building.

The proposed 4.5m sq ft (423,000 sq m) scheme has already received a $630m (£322.7m) investment from Singapore developer CapitaLand under its ‘Raffles City’ brand and European energy services company Dalkia is to invest $150m (£76.8m) in developing a waste and energy services facility.

Arcapita’s headquarters will open in 2008 while the Four Seasons hotel will open in 2009 and Raffles City Bahrain in 2010. The rest of Bahrain Bay should be finished by 2011.

The lead architect on the scheme is Skidmore, Owings & Merrill.