Wednesday, June 09, 2010

$364bn of UAE construction projects on hold, cancelled

A total of 1,296 construction projects worth more than $418bn are currently being built in the UAE, research company Proleads said on Sunday.Its new report also said an additional 303 projects worth $143bn were in the design, planning and or bidding stage.
It said 842 projects with a total value in excess of $350bn were on hold as a result of the economic slowdown and a further 111 projects valued at more than $14bn have been cancelled. The total state of the UAE civil construction market included a total of 2,552 projects with a combined total budget value of almost $930bn, Proleads added.
“The construction boom has slowed down in the UAE as it has elsewhere but there is still 1,600 projects worth over $560 billion either in execution or about to start construction in a more sustainable approach to development,” said Graham Wood, group director of CityBuild Abu Dhabi organiser IIR Middle East.
The Proleads investigation considered projects with a budget value greater than $10 million and divided the market into five sectors - commercial, retail, hospitality, residential, and healthcare and education sectors.
In a sector breakdown, Proleads said the total commercial sector consisted of 462 projects valued at $253bn.
Although a large proportion of projects were in execution, many have been placed on hold or even cancelled since the fourth quarter of 2008, the research house added.
New project construction starts have also slowed, while those completing are increasing, the report said.
The total retail sector consisted of 336 projects valued at $148bn with 64 percent of projects still active while the hospitality sector consisted of 392 projects valued at $162bn with 63 percent active.
The residential sector included 682 projects valued at $306bn with 62 percent of projects active.The education and healthcare sector included 680 projects valued at $58bn with 64 percent of projects active.
The research was done on behalf of CityBuild Abu Dhabi which opened on Sunday and is being held alongside Cityscape Abu Dhabi.
Announced project cancellations and suspensions in the UAE


Project Value                        (US$mn)               Client                                          Status

Nakheel Harbour and Tower 38,000                  Nakheel                                       On hold

Al Salam City                           8200                 Al Rajhi Group, tameer Holding      On hold

Asia-Asia Hotel                        3270                Tatweer                                          On hold

Al Salam City (Phase 1)            2700               Al Rajhi Group, Tameer Holding      On hold

Dolphin City                             1700                Emirates German Group                  On hold

Western region Aluminium Smelter Power Plant 1500 Abu Dhabi Water and Electricity Authority On hold

Nad El Sheba Racecourse        1300                 Meydan LLC                                    Cancelled

Redevlopment of Mina Rashid 1000                 Nakheel                                            On hold

Aqua Dunya (Dubvailand): Phase 2 950           Aqua Dunya                                       On hold

Aqua Dunya (Dubvailand): Phase 1 950           Aqua Dunya                                        On hold

Investment Corporation of Dubai (ICD) 817  Investment Coprporation of Dubai On hold

High Rise Boulevard               817                High Rise Real Estate                              On hold

Anara                                     800               Tameer Holding                                       On hold

Plaza Mayor (Jumeirah Village) 800             Tasees, Makaseb Holding, Ishraqah          On hold

Falcon City of Wonders (Dubailand) 680      ETA Star                                                  Cancelled

Atrium Project                      654                  Sunland Group                            On hold (for redesign)

Palm Deira: Mixed-use Building Project 600  Nakheel                                                 On hold

Palm Trump Hotel and Tower 600                  Nakheel, Trump Organization                  On hold

The Vantage                           545                 Cirrus Developments                                   On hold

Light Rail and Tramway (Dubai Waterfront) 500 Nakheel                                               On hold

Rotating Tower (Jebel Ali) 500                   Merjen Group                                               On hold

Tiara United Towers         480                   Investments, United Group Holdings               On hold

Dubai Exhibition City        450                  n/a                                                             Cancelled

Jumeirah Hills                   450                      Sama Dubai (Dubai Holding)                   On hold

Esplanade                         422                       Muzoon Holdings                                       On hold

Cactus Theme                 420                       Nakheel                                                         On hold

Lagoon Club Hotel and Residences 400             Tourism Development and Investment Co   On hold

Signature Towers (Business Bay) 400                Dubai Properties                                          On hold

DRI and Meltshop Plant         400                     Al-Tuwairqi Group                                      On hold

Emivest - DSO - Towers         400                  Emirates Investment and Development PSC On hold

International Powers/Mitsui - Umm Al Nar RO Plant 350 Abu Dhabi Water and Electricity Authority On hold

Replacement of Infirld Pipelines (Zakum Field) 350 Abu Dhabi Marine Operating Company On hold

Desert Gate Hotels and Towers 350                      Bawadi                                                    Cancelled

X2 Towers 300                                                    Al Odaid                                                  On hold

Borouge - Melamine Plant 300            Abu Dhabi Polymers Company Ltd (Borouge)            On hold

Ain Al-Fayda 300                               Al Qudra Real estate                                                    On hold

Sharjah Sports City   250                    Government of Sharjah                                               On hold

Tatweer Towers       250                            Mizin                                                                   On hold

Dubai Healthcare City - Phase 2 235            Tatweer                                                               On hold

Forbidden City    222                              Nakheel                                                                 On hold

Residential Towers on Plot 39 210               Emaar                                                                On hold

Porsche Design Towers (Business Bay) 200 Dubai Properties                                               On hold

Pilkington Emirates - Float Glass Factory 200 Pilkington Emirates                                         Cancelled

Sienna Square         150          Cirrus Developments                                                             On hold

Sea Gull Tower      145                    East & West Properties                                               On hold

Image Residences 137                        Al Fara'a Properties                                                    On hold

Canal Point           136                         Istithmar                                                                  On hold

Seascape Topwer  135                        East & West Properties                                           On hold

Dubai Marina - Ice Tower 130  Mada'in Properties  Abyaar Real Estate Investment               On hold

Waters Edge (Busienss Bay) 125            Damac Properties                                                Cancelled

Mina Rashid - Mixed-use Tower 110    Azizi Investments                                                       On hold

West End Tower 1 and 2 (Jumeirah Village South) 110 Al Rashid Investments                          On hold

Business Bay - Burjside Boulevard 100           Damac Properties                                         On hold

Dolphon Towers 100                                         Damac Properties                                     Cancelled

West Bay Tower (Business Bay) 88 Snasco, International Investment Bank                         On hold

Al Odaid - Palm Tower 80                 Al Odaid                                                                   On hold

Nadra Tower (Business Bay) 70           Tamweel                                                               Cancelled

Jumeirah Village - Green Park 50             Damac Properties                                                 On hold

Palm Island Hotel Resort 50                 Al Fardan Group                                                    On hold

Source: HSBC Global Research

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