MAIL Online: The developer of potentially the world's tallest skyscraper 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.
Home values in the emirate tumbled 8 percent in the last three months from the previous quarter, a report said, marking what analysts say is the first such decline in years.
The halted skyscraper was planned to soar the length of more than 10 American football fields. Analysts said its unveiling late last year showed a lot of confidence amid the souring global economy.
State-owned Nakheel said in a brief statement that 'further work' on its building's foundations '[would] commence in 12 months'.
The developer did not say how much work, if any, had already been completed.
'This is part of our readjustment of our immediate business plans to better reflect the current market trends and match supply with demand,' the company said. >>> By Mail Foreign Service | Wednesday, January 14, 2009
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