The Business of… 2010’s underperformers
Strikes, debt and defaults; 2010 hasn’t been kind to a lot of UAE businesses. Here is our pick of the biggest underperformers in 2010.
December 29, 2010 11:22 by shafeer
In the middle of the mess that was the Delhi Commonwealth Games was also the apparently shoddy construction work of one of Dubai’s top property developers. Emaar was active in India as Emaar-MGF (Emaar’s India subsidiary is a partnership with MGF).
The joint venture company was charged with building the Games village for the athletes, which was criticized for being delivered late and unfinished or inadequate. The Delhi Development Authority says that Emaar-MGF failed to achieve project milestones in time and failed to pay bodies and agencies for utility services. For its part, Emaar insists Emaar-MGF provided adequate documentation as regular updates to the DDA which included “the fact that the authority’s contractors were causing damage and were not being supervised,” says Indian Express.
Emaar-MGF says there are no outstanding dues to any companies or bodies, and that the Games Village has been built to highest standards. Though Emaar initially tried to shake off the implications, analysts say its dealings with the commonwealth games, as well as heavily indebted Amlak Finance, are making balancing the books quite a task for Emaar.