By Andy Sambidge
CEO says company is facing difficulties with existing infrastructure, master developers
Kuwait-based developer Al Mazaya Holding Company plans to reduce its business in Dubai, CEO Nayef Mohammed Al-Awadi has said.
“We want to reduce our exposure in Dubai because of difficulties with existing infrastructure and master developers,” Al-Awadi said in comments published by Bloomberg.
He said the company was “doing well from an operational point of view" but added that the decline of its assets in Dubai "has affected us".
Growth in 2012 will depend on the value of assets at the end of the year, he said.
The company isn’t planning any projects until 2013 and is occupied with existing projects, mainly in Dubai, Al-Awadi told Bloomberg.
Al-Mazaya plans to focus on Saudi Arabia’s residential market, where it sees strong demand, he added.
In March, Al Mazaya Holding said it had signed contracts to restart some of its suspended real estate projects in Dubai.
The company said between 70-80 percent of its problems in Dubai had been resolved and was noticing "some signs of demand on real estate units by international companies".
The renewed demand has encouraged Al Mazaya to sign construction resumption contracts for some of its projects in Dubai, it said in a statement without giving further details.
Al Mazaya Holding reported a net loss of $57.2m in 2011, weighed by provisions totalling $142.9m.
Construction companies in the UAE are searching for work in other markets after $964bn in projects were halted or cancelled in the country as of last November, Citigroup said in a report earlier this year.
This man wants to pull out of Dubai because of the backlash that the last article that AB posted from disgruntled customers that want this man to return their money for not building their properties.
This man is no different from the other developers. As far as RERA is not implementing the law against errant developers, nothing will change and the imae of Dubai Real estate will continue to sink. RERA has a big deal of responsibility in the situation. Either they are unable to deal with the situation and they should state it or they dont want to deal with the situation and they should make it clear to investors. RERA cannot continue to hide their head in the sand and impose rules on Investors but ignore the rules when it comes to developers. Dubai Real estate and UAE real estate are in bad shape due to lack of transparency and legal framework that protects investors. If this situation is sorted Dubai real estate market will boom again with plenty of wealthy potential owners just waiting for a solution