Credit crunch bites into Middle East architecture projects
Photo Credit: Nakheel
By Anna Winston
November 18, 2008
In a sign of the weakening market in Dubai, state-owned developer Nakheel has announced it is to scale back projects in the emirate.
The news comes after a BD survey revealed that UK practices were increasingly relying on work from the Gulf to see them through the recession, with Dubai cited as a key market.
On Monday a spokesperson for Nakheel, developer of both Woods Bagot’s 1,000m-tall tower in Dubai and the Palm developments, said: “The next few months will see a scaling-back of activity around some of our projects.
“This will not affect our long-term business objectives, and is a responsible approach in line with current global economic conditions.”
Smaller developers across Dubai have also revealed job losses and changes in recruitment policy.
Omniyat, the developer behind a number of Zaha Hadid projects in Dubai, has said it will cut 60 jobs, while Damac is losing 200 jobs.
In addition, recent reports in the Gulf Times have suggested that the Dubai government may be considering selling its stake in Nakheel.
Such a move would raise capital for the emirate to reduce its debt, which has become increasingly expensive to finance in the past few months.
One potential buyer being mooted for Nakheel is cash-rich Abu Dhabi.