N-E firm will help build a second Atlantis in Dubai

K Home International, based in Thornaby, on Teesside, hopes to recruit 50 workers from the North-East to work on the project, which will be only the second seven-star hotel in the world.

Atlantis, on the Palm, in Dubai, will have 2,000 bedrooms in two towers. Work on the project is expected to begin early next year.

K Home managing director Trevor Arnold said: "This is great news because it will give us a worldwide profile. We are a local company with global capabilities.

"The total cost of the project is going to be $1.1bn. We are forming a project management and site supervision team to build the hotel and water park on the Palm, in Dubai.

"It is a real coup for us because we were bidding against ten of the best companies in the world for this project.

"It is difficult to say exactly how much it is worth to our company because we will be paid on a monthly basis, but it will certainly be in excess of £11m."

Mr Arnold said he would be recruiting site inspectors, engineers, safety managers and quality checkers from the region to work on the project.

The hotel is being developed by Kerzner International, which built the first Atlantis hotel, in the Bahamas.

Attractions at the Dubai Atlantis hotel will include one of the world's largest marine habitats, a snorkel trail, an archaeological experience, a swimming with dolphins programme and tens of acres of water park rides.

Mr Arnold, who has extensive business contacts in Dubai, introduced Middlesbrough Mayor Ray Mallon to the head of development company Emaar, His Excellency Mohammed Ali Alabbar, who visited the Tees Valley this week.

On Thursday, Mr Arnold was with Mr Mallon and His Excellency when they met with Prime Minister Tony Blair to discuss Emaar's interest in the area.

K Home International, has completed more than $3bn-worth of projects in the past ten years.

It specialises in construction management, engineering design, and the chemical and food sectors management.