Construction firms owed billions

Construction firms in Dubai say they are having to either accept reduced payments, or risk not getting paid at all.

Riad Kamal, the chief executive of Arabtec Holding, the UAE’s largest construction company, told Reuters yesterday the company had outstanding invoices of about Dh3 billion (US$817 million), of which nearly 80 per cent was due from the Dubai Government or related entities. Arabtec is hoping to meet government officials next week to discuss the payments.

“We feel quite secure the money is going to come eventually. It’s a question of if it’s going to come in good time to be able to sustain the outlook and commitments that we have with our suppliers and sub-contractors,” Mr Kamal said.