Dubai developers look to slow construction

The global financial slowdown is forcing Dubai-based real estate developers to cut back on construction due to funding difficulties, it has emerged.

Many firms are putting jobs on hold until their financial situation improves, as well as implementing measures such as relaxed deadlines and payment plans for property purchasers.

One developer, Arabtec Construction, stated that it is looking into ways of slowing down building levels.

"There was no reason for projects to be implemented at the speed at which they were," chief executive of the firm Riad Kamal stated, adding that it has entered discussions with clients regarding extending the timeframe for many construction projects.

Such a decision could have implications for property investors planning on making purchases in the emirate in the coming months or years.

Elsewhere in the United Arab Emirates, a recent Citigroup report has predicted prices in Abu Dhabi will remain high in the short-term, as the emirate has sufficient funds to finance current development projects.

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