By Shane McGinley
Drake & Scull boss says the time taken to settle bills has lessened since last year.
The time taken by Dubai developers to pay overdue invoices to contractors has improved, compared to the downturn last year, the head of one of the Middle East’s biggest contractors said in Dubai on Wednesday.
“Everybody has payment issues in Dubai, we all have,” said Khaldoun Tabari, vice chairman and CEO of contractors Drake and Scull International PJSC.
“Things have improved in the sense that when it started, the economic downturn, we were expecting our money at 60 days and it became, 90 days and 120 days. We feel comfortable if it is 90 days and after 120 days it becomes alarming,” he added.
“Now people do not venture into a project without knowing where the money is coming from… [and] developers are not even starting if proper finance is not available… so everyone understands the risk,” he said.
Earlier this month, it was reported that Nakheel, one of Dubai’s most high profile master developers which has been frequently chastised for non-payment of contractors, said it has started paying its contractors which are owed AED500,000 ($136,240) or less.
"All trade creditors have been or are in the process of being paid AED500,000, which means that those owed AED500,000 or less are paid in full," a spokesperson for the company told the Zawya Dow Jones newswire.
In May, Nakheel said that that more than half of its claims with trade creditors have been approved.
Now perhaps we'll be able to collect on the $400K that we're owed by one of the biggest construction projects in Dubai. But I doubt it.