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Sat 13 Dec 2008 04:00 AM

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Palm centrepiece on hold

Work on the Trump International Hotel and Tower Dubai, the centerpiece of the Palm Jumeirah, has been temporarily suspended, master-developer Nakheel has said.

Work on the Trump International Hotel and Tower Dubai, the centerpiece of the Palm Jumeirah, has been temporarily suspended, master-developer Nakheel has said.

The US $790 million (AED2.9 billion) project is one of the highest profile individual developments to be hit by delays resulting from the global financial crisis.

It is one of a number of Nakheel projects that have been scaled down or delayed as the firm has reacted to the fall in demand for real estate across the region.

The contractor for the project, a joint venture between Al Habtoor Leighton and Murray and Roberts, said that Nakheel had agreed to cover all costs incurred through suspension of the project.

Last week Nakheel announced it was cutting 500 jobs, equivalent to 15% of its workforce.

Sections of the mammoth Jumeirah Gardens development have also been put on hold, according to master-developer Meraas.

The $95 billion project was unveiled just two months ago at this year's Cityscape Dubai exhibition.

The master-developer said in a statement, "We are simply reviewing our business strategy, as well as the phasing and rollout of the Jumeirah Gardens project to make sure the development proceeds in the most opportune way to meet changing investor needs"

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