Wednesday, July 29, 2009

More than 400 projects suspended in UAE

About 400 projects, worth more than $300billion are either on hold or have been cancelled in the UAE, owing to global financial crisis, revealed Proleads Global.

Construction sector in the UAE will stabilize by the end of the year, and will show further sign of recovery by 2010. Several projects are underway in various sectors, due for completion by 2010-2011, the report said.

The study noticed that there is a slowdown in new projects in the commercial and retail sections, which healthcare and education projects are placed on hold more often than in the past. There is also slowdown in leisure and entertainment, while the rate of cancellations in the residential sector is on the increase.

The once-booming property sector of Dubai has been particularly hit by the downturn, while Abu Dhabi has been more resilient towards the effects of downturn.

At present there are more than 750 active projects in the UAE that are under construction, with almost 450 recently completed.

Proleads, in its February report, mentioned that 52.8 percent of its projects were on hold, while the rest $698billion worth projects are in progress.

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