Luxury Trump Tower project in Dubai suspended

Trump Tower, a $789.5 million project planned for one of Dubai's palm-shaped islands, has been suspended, one of the companies involved in the project, Australia's Leighton Holdings, said on Monday.

The high-profile cancellation comes one day after developer Nakheel said it had cut 500 jobs or 15 per cent of its workforce as it scales back projects as signs that the emirate is being hit hard by the global credit crisis intensify.

Further slowing of projects and suspensions among Dubai property developers are expected to increase as the credit crunch bites the seaside emirate.

Nakheel has agreed to cover all costs for Al Habtoor Leighton Group and Murray and Roberts' costs incurred to date for the project, which began in July, the statement said.

The project, located on Palm Jumeirah, is a high-end, mixed-use development containing hotel and residential facilities.

Separately, Dubai-based private property developer Azizi Investments said in a statement on Monday its five projects on Palm Jebel Ali were continuing as planned, despite Nakheel's statement on Sunday.

‘Business as usual' at Palm Jebel Ali for Azizi

Azizi Investments, a real estate developer in the Gulf, announced that it was ‘business as usual' on its projects at Palm Jebel Ali following Nakheel's statement yesterday regarding scaling back of projects.

Azizi Investments' Palm Jebel Ali developments are on Crescent A and Crescent E, where work by Nakheel is “continuing as planned'' according to the statement. Azizi Investments is developing five projects on Palm Jebel Ali; Azizi Fontanne, Azizi Diamond, Azizi Crystal and Azizi Platine on Crescent A, and Azizi Onyx on Crescent E.

Mr. Merwiss Azizi, Founder and Chairman of Aziz Investments, comments:
“Azizi Investments is committed to delivery of every project on schedule. Our clear focus is on quality of design, quality of build and outstanding customer service. While we understand the need for Nakheel to scale back its projects in the current economic climate, we are very pleased that this does not affect our progress. We are also moving forward with our projects at Al Furjan and Mina Rashid, other Nakheel projects which also remain unaffected.''