Dubai: Union Properties' Formula One theme park is the latest project to be suspended in Dubai due to the current economic slowdown, said the developer in a statement.
The project was due to open in Dubai this year. However, the construction and opening of the F1-X theme park has now been suspended for one year, following a board decision.
"The decision was taken due to the current financial market and the drying up of liquidity from banks and financial institutions. The suspension will delay the opening of the Formula One entertainment concept until 2010," Union Properties said in a statement.
Construction of the project, located in Motor City, is more than 50 per cent complete and officials are still hopeful a financial partner will step in to help with funding.
"The project is founded on a strong business model that withstands recession whilst allowing for the future growth of Dubai.
"With construction more than 50 per cent complete, the core of international expertise on the ground and operational plans virtually complete, it is hard to believe that a financial partner will not come forward in coming days or weeks to capitalise on the opportunity," said Penny Fischer, the marketing director for the Formula One theme park, said yesterday.
This is the latest in a string of projects to have put the brakes on construction and joins Nakheel's Worlds of Discovery theme park on Palm Jebel Ali, Trump International Hotel and Tower, Nakheel's kilometre-tall tower and parts of Palm Deira, which are also being developed by Nakheel.
Motor City comprises of five areas, including the Formula One development.
This week, Union Properties announced 12 per cent growth in net profit, which rose to Dh763 million in 2008, beating the prior year's profits.
Union Properties told Reuters at the beginning of the month that Motorcity, the 80-storey Index and Limestone House were due to be completed and delivered in 2009 as scheduled.
However, the financial situation seems to have tightened its grip, with an increasing number of projects being delayed or rescheduled.
Out of a total 875 projects currently in Dubai, Dubai's Real Estate Regulatory Authority (Rera) estimated around 25 per cent of these would be rescheduled given the difficult market conditions.
