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New ‘Mega-Projects' Announced as Gulf Markets Tumble
The Media Line News Agency
The Media Line Staff
08 October 2008
Dubai-based real estate developer Nakheel has announced plans to build what will become the world's tallest tower once complete, in a new project called Nakheel Harbor & Tower, according to the company's website. The centerpiece of the development will be a 3280-foot-, or one kilometer-high tower overtaking the Burj Dubai tower, which is estimated to be 2887 feet, or 880 meters, once completed.
At the same time government-owned Meraas Development presented its plans for a $95-billion new city called Jumerirah Gardens . The project is supposed to be finished in 12 years time. Both of these projects were announced during the annual Cityscape real estate exhibition in Dubai , the highlight of the year for the real estate industry in the oil-rich kingdom, where the current leader, Sheikh Muhammad Al-Maktoum, has been instrumental in pushing the country away from oil dependency towards tourism and finance.
As a sign of his success some 20 percent of all the world's cranes are at the moment in Dubai . However, this year the news of new mega projects was not enough to turn red into green as the stocks of several leading developers fell on local markets. Emaar Properties, which in responsible for the construction of the Burj Dubai, fell by 10.7% on the Dubai bourse.
International real estate markets have been hit hard by the current global financial crisis, as fewer funds have been available: developers usually really heavily on loans to finance new projects. In other bad news for the construction sector, Cayan Investment and Development announced an 18-month delay to its Infinity Tower currently being constructed on the Dubai marina.
No specific reason was given for the delay, but the local construction industry has been hit by both shortages of skilled manpower and higher prices of basic materials such as steel and concrete.
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