Dubai World, the city's global investment conglomerate, on Wednesday announced that it has suspended several of its planned projects.
"Dubai World has put on hold a number of projects until the market improves, including some tourism projects in Africa and elsewhere," a Dubai World spokesperson said in a statement.
In May, the chairman of the holding company, Sultan Ahmad Bin Sulaiman, said that it expected double-digit growth from the emerging market of Africa.
With the formation of Dubai World Africa, focusing on development and acquisition of assets on the continent, it had planned to invest more than US$1.5 billion (Dh5.5 billion) over five years.
Since the credit crunch and the property sector taking a nose-dive at home base, the company has decided to consolidate its losses before taking international projects forward.
Dubai World said it would go ahead with only two of the eight projects planned for Rwanda, The "New York Timesā€¯ reported. Earlier, it had planned to invest US$230 million in Rwandan tourism and US$100 million in Ethiopia. Other projects included a wildlife game reserve in Zimbabwe, and three others in South Africa.
"The scaling back of foreign investments like Dubai World certainly impacts the things that the government of Rwanda wants to do in terms of raising the standards of living for all Rwandans," Clare Akamanzi, an executive with the Rwanda Development Board, said to the daily.
Three months ago, the company said it would expand into new markets of India, China, Thailand and Vietnam, apart from Africa. Under the current circumstances, many of these could be shelved until the economic condition improves.
One of its worst hit units, real estate developer Nakheel, is seeing many project deferrals. Its delayed projects include the Nakheel Harbour and Tower development. The chairman earlier said that projects underway will be completed, and the rest would be put on hold until market conditions improve. - Gulf News - with inputs from agencies
RELATED ARTICLES
Waha Capital CEO speaks to stakeholders on company's growth plans - 23 August 2010
Aabar gets nod to convert to PJSC - 17 August 2010
Aabar suffers Dh1.38bn Q2 loss on derivatives - 16 August 2010
Adia, Asian SWFs eye stake in AIAā€™s US$15bn IPO - 12 August 2010
Abu Dhabi has no plan to cut Europe exposure - 07 July 2010
RETURN TO MAIN NEWS PAGE | WAM
UP TO THE MINUTE NEWS
Home
