January 19, 2009—The developer of a skyscraper planned to be the world’s tallest said it is halting work on the project for a year as the Middle East’s business and entertainment capital grapples with the financial crisis.
State-owned builder Nakheel’s decision to shelve the landmark development, which it unveiled only in October, came as a leading credit rating firm warned that falling real estate prices will likely hurt banks in Dubai and elsewhere in the United Arab Emirates.
The halted skyscraper was planned to soar the length of more than 10 American football fields, and analysts had said its unveiling late last year showed a lot of confidence amid the souring global economy.
In response to questions, state-owned Nakheel said in a brief statement that “further work” on its building’s foundations “will commence in 12 months.” The developer did not say how much work, if any, has already been completed.
As part of government-run conglomerate Dubai World, Nakheel has played a major role in creating modern-day Dubai, a city that has blossomed from a tiny Persian Gulf fishing and pearling village into a major business and tourism hub in a matter of decades. Nakheel is best known for Dubai’s growing archipelago of man-made islands. The new tower would be located in the rapidly growing “New Dubai” section between two of the islands.
For more information, see Nakheel’s Web site.
