Work on its major project in Dubai has been suspended by Emaar Properties, which is the largest listed construction company in the United Arab Emirates, according to reports quoting sources familiar with the matter. This decision, according to sources, was because of the spread of the coronavirus pandemic which has impacted the slowdown of the real estate industry in the Middle Eastern business hub.
A direct impact of the 2008 global financial crisis and the weakening of the oil prices in the international market since the last almost four years have resulted in an oversupply of homes and offices in the emirate which has impacted by the property market of Dubai since the last decade or so.
The already struggling real estate industry in the emirates was further hit by the coronavirus pandemic as the Dubai authorities were forced to postpone the Expo by a year – which is a major event for the emirate which was set to be hosted starting October this year.
According to reports, construction projects including the one at Dubai Creek Harbour, a new development touted as offering homes to about 200,000 families, have been suspended by Emaar. The suspension included work on the Dubai Creek Harbour Tower which has been touted to be higher than the Dubai's Burj Khalifa – which is currently the tallest building in the world, said reports quoting the sources.
There were no comments on the issue available from Emaar – which was also behind the construction of Burj Khalifa.
Last month, Emaar had said that work on a luxury residential tower in a prime Dubai district had been suspended by it and had added that it had also closed down a number of hotels because of the severe impact of the virus pandemic on the global tourism industry.
According to the reports which also quoted an internal letter of the construction company, Emaar said Chairman Mohamed Alabbar had also forfeited his salary and as much as 50 per cent of salaries were proposed to be cut of other staff of the company.
(Source:www.usnews.com)
A direct impact of the 2008 global financial crisis and the weakening of the oil prices in the international market since the last almost four years have resulted in an oversupply of homes and offices in the emirate which has impacted by the property market of Dubai since the last decade or so.
The already struggling real estate industry in the emirates was further hit by the coronavirus pandemic as the Dubai authorities were forced to postpone the Expo by a year – which is a major event for the emirate which was set to be hosted starting October this year.
According to reports, construction projects including the one at Dubai Creek Harbour, a new development touted as offering homes to about 200,000 families, have been suspended by Emaar. The suspension included work on the Dubai Creek Harbour Tower which has been touted to be higher than the Dubai's Burj Khalifa – which is currently the tallest building in the world, said reports quoting the sources.
There were no comments on the issue available from Emaar – which was also behind the construction of Burj Khalifa.
Last month, Emaar had said that work on a luxury residential tower in a prime Dubai district had been suspended by it and had added that it had also closed down a number of hotels because of the severe impact of the virus pandemic on the global tourism industry.
According to the reports which also quoted an internal letter of the construction company, Emaar said Chairman Mohamed Alabbar had also forfeited his salary and as much as 50 per cent of salaries were proposed to be cut of other staff of the company.
(Source:www.usnews.com)
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