By Shane McGinley
Dubai developer’s $1.4bn RAK project remains on hold two years after its suspension
Saraya Holdings, the Dubai developer with projects in Oman and the UAE, denied it has made widespread staff cuts in its Jordan unit and said it is raising funds to complete existing real estate projects.
The company said media reports the firm planned to cease operations in the kingdom August were “completely untrue”, but said a "minor" number of jobs had been cut in recent weeks.
The company declined to specify the number of employees made redundant.
Saraya, whose real estate project Saraya Aqaba in Jordan is under construction, said it is in talks to obtain a syndicated loan to fund the completion of the development.
The $1bn project comprises a 634,000 sq m site built around a man-made lagoon and includes around 756 residential units. Saraya owns a 37 percent stake in the development.
Dubai’s state-backed Jumeirah Group said last year it would operate a number of hotels and a water park in the development.
Saraya said it was also committed to completing its Muscat-based Saraya Bandar Jissah development, which will be launched to investors later this year.
The company owns a 50 percent stake in the project.
“Both Saraya Aqaba and Saraya Bandar Jissah remain debt free,” the company said in a statement.
Saraya Holdings also confirmed its $1.4bn Ras al Khaimah real estate project remains frozen some two years after its suspension. The company halted sales on the island project in 2009 after the global crisis halved real estate prices in parts of the UAE, but pledged to offer a 100 percent refund to investors.
Headquartered in Dubai International Financial Centre, Saraya Holdings claims total available equity of $364.5m.