Who’s going to fall next?

Who’s going to fall next?

Even as the financial crisis drags on into the New Year, announcements of project cancellations and delays are starting get common.

February 5, 2009 11:10 by Aarti Nagraj

A report by HSBC said that almost $75 billion worth of property schemes have been put on hold in Dubai because of the economic slowdown. And while people are still trying to figure out which buildings have been cancelled or delayed by developers, international ventures in the city are also starting to take a hit.

In December last year, work on the $790 million Trump International Hotel & Tower was suspended. The 62-storey tower was set to become the centerpiece of Nakheel’s Palm Jumeriah island when completed in 2011. In August 2008, Hilary Swank, Russell Crowe, Arnold Schwarzenegger and Orlando Bloom were some of the celebrities who attended the exclusive party thrown by Donald Trump and Sultan Ahmed bin Sulayem in LA for the launch of the tower.

And now, another Nakheel collaboration, the Worlds of Discovery, a collection of four theme parks coming up on The Palm Jebel Ali, has been shelved. Orlando-based Busch Entertainment Corp and Nakheel have said that the project has been delayed for at least a year, and that they will announce a new completion date “in due time.”

The project was initially announced in February last year, and while SeaWorld and Aquatica were scheduled to open in 2012, the Busch Gardens and Discovery Cove were set to open in 2015. The parks were planned to be built on 300 acres, shaped like Busch’s killer whale logo.

The HSBC report says that high-end residential schemes and commercial developments were those most at risk of being shelved, adding that “the worst of news has seen cancellations of entire projects even though they appeared in advanced stages of construction.”

In the recent past, Dubai began to announced grand plans for its 2015 ‘vision’ which included Dubailand with its numerous theme parks and leisure areas; a sporting center: Dubai Sports City with golf courses and a mega stadium; and the ultimate lifestyle destination: with Fashion island (Isla Moda) on The World and gigantic malls.

But as the money dries up and projects get shelved and postponed, will Dubai be able to realize vision? Is the financial crisis only delaying its vision, or cancelling it altogether? And even if some of the projects do materialize, will the city continue to entice tourists?

Tags: Busch entertainment, cancelled, delayed projects, Dubai, Financial Crisis, future, international developers, nakheel, Real estate, Sea world, theme parks, vision

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1 Comment

Joe on February 10, 2009 11:57 am

Dubai does not have the foundations such at London, New York, Sydney to rebound from this real estate and market crash. That showed within minutes the crisis became worldwide, Dubai Stocks and Real Estate collapsed. Dubai had the second biggest stock market lostâ€¦ Iceland was the biggest, and 50%-70% drop in property prices and rents is unprecedented I would think.

Thankfully, Dubai has Emirates Airlines and to some extent Etihad Airlines, these brilliant airlines do entice tourist to fly themâ€¦ subsequently bringing tourists to Dubai, almost as a primary designation. However, most passengers just stopover in Dubai to experience â€œDubaiâ€�â€¦ there is no doubt about it, Dubai is a fun place to visit for 3-4 days.

Like in the old â€œGold rush Daysâ€� people came when all was good and the gold was to be found, making the town busy and a great place to be. But when the gold was all gone, the once happening town lost the appeal it had during the gold rush daysâ€¦ it never gets though days back, because the next new gold rush town appears.