Dubai theme park hit by delay

Dubai's World of Discovery theme park has been delayed due to the credit crunch, it has emerged.

Developer of the site Nakheel has postponed construction for a year, as it looks to cut back its operations in the current financial climate.

The first phase of the theme park - which is being developed in partnership with Busch Entertainment (BEC) - was due to open in 2012, with the second section originally scheduled to be completed three years later.

Each of the park's four areas are designed to form a killer-whale-shaped island known as the Crown, which is located art the top of Palm Jebel Ali.

"While design work and site preparation on the crown of Palm Jebel Ali has been delayed for 12 months, BEC and Nakheel remain committed to the Worlds of Discovery Dubai partnership," Nakheel said in a statement.

The announcement follows the news that Egypt's Housing and Development Bank is considering purchasing a stake in Damac, another Dubai-based developer that currently has a number of projects underway in Egypt.