Dubai government-owned developer Nakheel has denied reports it has shelved dredging work on the largest of the three palm-shaped islands it is building of the emirate’s coast.
London-based magazine MEED on Friday reported the developer has told dredging contractors to stop work on the Palm Deira, a 42.2-square kilometre project made up the main palm and five islands at its base that if completed will be larger than Manhatten.
MEED said Nakheel is focusing on completing the islands closest to the mainland rather than working on new sections.
The global economic downturn and tightening credit markets have raised questions over the viability of some of Dubai’s mega-projects due to decreased investor appetite and difficulties raising funds.
However, Nakheel said in a statement work on Palm Deira is “ongoing as planned”.
“The focus of our activity is currently being directed at reclamation works in areas closest to the shore. Once this is complete we will start progressive land sales and development. This is in line with Nakheel’s business model, and is a very responsible approach in line with current global economic conditions,” it said.
Nakheel’s chief financial officer (CFO) Kar Tung Quek said last week the developer may scale back its huge land reclamation projects to curb costs and protect profits.
Gavin Boyd, director of development for Palm Deira, told Arabian Business earlier this month construction and the sale of plots on Palm Deira were going ahead as scheduled and the global economic slowdown and ensuing credit crunch had not hit development.
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