Skip to content

Dubai Travel News

Travel & Tourism News of Dubai and rest of UAE

Menu
  • About
  • Advertise Here
  • Business Directory
    • List Your Company
  • Contact
  • Currency Rates
  • Privacy Policy
  • UAE Cards
Menu

Leighton, Abu Dhabi Abandon Venture on Market’s Slump

Posted on June 19, 2009

June 17 (Bloomberg) — Leighton Holdings Ltd., Australia’s largest construction company, and a developer of tourism-related buildings in Abu Dhabi abandoned a venture that was expected to generate revenue of at least $1.5 billion within five years.

Leighton, a Sydney-based company controlled by Hochtief AG of Germany, and the Tourism Development & Investment Co. agreed to create the venture in December 2007. TDIC is the development arm of Abu Dhabi’s tourism authority.

“After a strategic review of TDIC’s business model and due to the changing economic climate, it became more commercially viable for TDIC to retain the flexibility to work with different contractors,” Lee Tabler, TDIC’s chief executive officer, said in an e-mailed statement today. “Therefore the joint venture was never progressed.”

Since the venture was announced, the worst financial crisis in more then 70 years has prompted developers in Abu Dhabi and the rest of the United Arab Emirates to cancel or delay construction projects. Leighton scrapped a 4.9 billion dirham ($1.3 billion) venture to build an additional concourse at Dubai airport in April after failing to reach an agreement with Dubai’s Department of Civil Aviation.

Lower Prices

“The market has changed,” TDIC spokesman Bassem Terkawi said by telephone today. “The prices of materials are lower and contractors are more desperate for work, so TDIC and other developers are reacting to that and looking for the best return on investment.”

Leighton, with operations across Asia and the Gulf region, last month cut its full-year profit forecast by 10 percent because of the slump in the industry.

The company is working on 3 billion dirhams worth of projects for TDIC, according to Chris Gordon, Leighton’s spokesman in Dubai. They include Angsana and Eastern Mangroves and the Saadiyat Island Link, Gordon said today by telephone.

The company will have to bid for any other contracts, he said.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  • Abu Dhabi Events
  • Deutch
  • Duabi Property Deals
  • Dubai Books
  • Dubai Events
  • Dubai Hotels Special Offers
  • Dubai News
  • Dubai Tours
  • Dubai Videos
  • Events/Conferences
  • featured
  • General
  • International News
  • New Hotels in ABu Dhabi
  • New Hotels in Dubai
  • People
  • Products
  • Technology
  • Travel Industry News
  • الصور
  • عربي




Our Sections of site

  • Amari Hotel Reservations Amari Hotels reservations 0
  • Brunei Travel & Culture Services Tours and hotel reservations Brunei Daressalam 0
  • Dubai Desert Safari Desert Safaris in Dubai 0
  • Exotic Dubai Tours Dubai tours safaris and hotel reservations 0
  • Guluna News 0
  • Kar group Dubai 0
  • Nawab Zippers Zippers Buttons and pullers for leaather garments in Pakistan 0
  • Qatar Tours Doha Tours, desert safaris and hotels. 0
  • Sri Lanka Travel & Culture Tours to Sri Lanka 0
  • Taj Mahal Hotel Reservations Taj Hotel reservation service 0

Partners

  • Biomed Articles Medical articles 0
  • Exotic Italy Tours Italy Tours 0
  • Hunza Tours and Treks Hunza Vally tours and hotels 0
  • London Pass London Pass web site online purchase 0
  • Tanzania Tours & Safaris Tanzania Travel 0
  • Travel & Culture Services Travel & Culture Pakistan 0

Abaya American Arab ArabIsraeli Arabs Brand New Burj business Christianity city Conflict Dhabi DSF Dubai Dubai Tourism East Edition Emirates From Guide Head History Islam island Israel Life Mark Middle Middle East Muslim Palestine Peace plans Politics Product Read remainder mark Scarf Shemagh travel UAE United united arab emirates White World

©2023 Dubai Travel News | Design: Newspaperly WordPress Theme