Work stops on Nakheel Harbour and Tower for a year
Further evidence of the effects of the global recession on Dubai comes in the form of the announcement by Nakheel, Dubai’s state owned property development giant, that work on the 1000 metre high Nakheel Harbour and Tower has been suspended for a year.
The Tower, which formed the centrepiece of the $38 billion (140 billion dirham) project, only announced in October, was to have been the world’s tallest.
Hot on the heels of the cutting of fifteen percent of their staff and the suspension of work on the $790 million Trump Tower in consecutive months, this postponement delivers a clear message about the current state of the property market in Dubai.
Nakheel, like many other developers in Dubai who have also cut staffing levels, and abandoned or scaled down projects, are struggling in the current financial climate which seems to be hitting the property sector particularly hard.
A Nakheel spokesman, trying to put a brave face on things, attributed the delay to being: “part of our readjustment of our immediate business plans, to better reflect the current market trends and match supply with demand.”
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Clearly you would think a company of this size and stature would have people on hand to ensure that projects announced with such fanfare are not ditched 90 days later.