Dubai contractors face cash flow crisis
In the latest sign of the slowdown enveloping the Gulf, contractors working in Dubai are facing severe cash flow problems as state-linked developers, hampered by blocked credit markets, fleeing investors and a tumbling local property market, fail to meet their financial commitments.
Some contractors and consultants have not been paid for up to six months, and large Dubai-affiliated developers owe billions of dollars, according to contractors, lawyers and executives.
They say large government-controlled developers in the emirate, such as Nakheel and Emaar, are among those failing to pay.
Not so long ago Dubai was an Eldorado for construction and property companies. Attracted by some of the world’s most ostentatious and expensive projects, contractors from round the world flooded in to help the ambitious emirate turn itself into a modern metropolis.
[ Continue reading original article at FT ]