Architect major sees cash shortfall from developers

Global architect firm RMJM has admitted it may never see all the money that it is owed by UAE developers.

In an interview with Arabian Business, RMJM director of global emerging markets Nick Haston, said the company would recoup some of its debt - but stopped short of criticising developers, saying it was part of "risk in business".

“I think we will get money back, I’m not sure we will get everything back,” he said, declining to say how much was owed to RMJM and by whom.

“That is part of risk in business. I’d be very surprised to hear anyone in the construction industry who isn’t owed money. I think it’s important to have an understanding of the position they [developers] are in as well, and striking a balance between pursuing what is owed to you and being able to move on and run the business,” Haston added.

Tight liquidity and a property downturn triggered by the global crisis has left many contractors and consultants in mainly the construction and real estate sectors owed millions of dirhams by UAE developers.

“We have invested here for a reason. We could have taken some very easy decisions to review our whole approach to the UAE. We did that, and rather than going the way of most people, we’ve stayed,” Haston said.

RMJM, whose projects include the ADNEC Capital Gate tower in Abu Dhabi, employs 288 staff in Dubai. It has been working in the UAE for 38 years and employs around 1000 architects globally.

Haston said Dubai was unlikely to return to the heights it enjoyed during its six year real estate boom, which unravelled this time last year in the wake of the financial downturn.

“People are deluding themselves if they think it will go back to the peaks of what it got to,” he said.

Edinburgh-based RMJM, which is pitching for new projects in Bahrain and Saudi Arabia, is in early stage talks about a possible move into Iraq.

The company has previously looked at Afghanistan.

A full interview will appear in Sunday's edition of Arabian Business magazine.

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