The Al Rayhan Neighbourhood project is being spearheaded by Al Enma'a House for Real Estate and was approved by the Northern Municipal Council yesterday.
The new project will include 73 houses, eight four-storey apartment buildings, five three-storey apartment buildings and four commercial buildings.
It will also include a park for residents.
At yesterday's meeting, council chairman Yousif Al Boori warned fellow councillors against blackmailing investors into making charity contributions.
"The investor is already giving financial support to the Saddad Charity Fund and he is willing to do the same to the Shahrakan Charity Fund," said Mr Al Boori.
"There will be no conditions in the contract because we are not here to blackmail anyone.
"We want to encourage investors, not scare them, because most have started thinking that to have council approval for projects they need to pay us huge amounts of money."
Al Enma'a has just completed a similar project in nearby Saddad called Al Zahra Neighbourhood.
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