Dubai: Nakheel PJSC, the state-owned developer planning a kilometre-high tower in Dubai, will scale back some of its projects because of the global economic slowdown.
Nakheel will reassess its "immediate business objectives to accommodate the current economic climate", the Dubai-based developer that's building palm tree-shaped islands off the emirate's coast said yesterday in an e-mailed statement.
"The next few months will see a scaling back of activity around some of our projects," Nakheel said, without providing details of the projects that are being reassessed. "This will not affect our long-term business objectives and is a responsible approach in line with current global economic conditions."
Dubai is bracing for a slowdown in the property market as economic growth slumps, reducing demand for real estate. Emaar Properties PJSC, the Middle East's largest real-estate developer, said November 13 that it is reviewing recruitment policies as the global financial crisis squeezes credit facilities and slows the regional property market.
Damac Holding, a closely held property developer based in Dubai, said November 11 it eliminated 200 jobs as the regional real estate market is hurt by the financial crisis.
Omniyat Holdings, another Dubai-based developer building projects designed by Pritzker Award-winning architect Zaha Hadid, will cut around 60 jobs, The National reported last week, citing a company official.
Dubai property prices, including villas and apartments, fell 4 per cent in the month of October, while in Abu Dhabi they declined 5 per cent, HSBC Holdings Plc said last week. The report was the first statistical evidence of a weakening housing market in the United Arab Emirates.
HSBC and Lloyds TSB Group Plc, two of the largest UK banks operating in the UAE, are reducing lending in Dubai.
The restrictions come after house prices in the emirate quadrupled in the last five years, stoking speculation that a drop is imminent.