Dubai Formula One theme park delayed due to lack of funding
News emerged today that the Formula One theme park set to open at the end of the year within Dubai Motor City has been postponed due to a lack of funding.
The CEO of developers Union Properties said the unwillingness of banks to lend in the current economic climate had caused work on the $460 million project to be halted after three years of construction. At this stage the park is fifty percent complete and was reportedly ready for the installation of rides.
The developers of the F1 theme park now hope to complete the project by the end of 2010. The other projects slated for Motor City are apparently all on course to be completed on time.
The F1 theme park is by no means the only project to be affected, the Dubai Real Estate Regulatory Authority estimates that around 25% of development projects in Dubai have been suspended due to the current economic crisis, and banks are increasingly wary of lending against developments in the emirate – even after the UAE government’s $10bn cash injection.
Sadly it’s looking like the depth of the global recession, and particularly the level of concern lenders are displaying about the state of Dubai’s construction and real estate sectors, could mean an end to gloriously insane projects like this one for the time being at least:
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