Thursday 9 April 2009

Dubai building boom in mass mothballing

A MASSIVE $US166 billion ($230 billion) worth of projects planned for Dubai have turned to sand as money dries up, forcing developers to shelve projects.

The mass mothballing will cut into the earnings, by 20 per cent in the worst case, of Australian companies such as Leighton Holdings, Sunland, the now-private Brookfield Multiplex, and to a lesser extent Grocon and the relative Dubai newcomer Bovis Lend Lease.

And across the Gulf region, the total value of projects postponed and likely to be cancelled has risen to $US335 billion, according to the Middle East Economic Digest.

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