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Sama Dubai has cancelled construction of their US $1 billion (BHD 377 million) Salam Resort project in Bahrain amid growing pressures of the financial crisis.
On Tuesday it was revealed the Dubai developer, part of government-owned Dubai Holdings, had revoked its contract with contracting joint venture Murray & Roberts and Nass Corporation.
“They decided not to go forward for now and they are going to review the viability of the project over the next six months,” Nass chairman Samir Nass told Construction Week.
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“Sama have about 10 big projects and I think this is one of several that are not going forward at this point.
“I think definitely it is going to go ahead in the future but when is the big question.”
Nass said the cancellation will have no negative financial impacts on his company as did Murray Roberts in a public statement.
It is the second blow in as many months for Murray & Roberts who also had their contract for Trump Towers Dubai scrapped in December.
No one from Sama Dubai was available to comment but the company said in November it was considering job cuts and reviewing its upcoming projects.
Last week it was reported that their $534 million (SAR 2 billion) Dubai Jeddah Towers project in Saudi Arabia has been put on hold.
Until now construction projects in Bahrain have remained relatively unscathed from the financial crisis with no major delays or cancellations being publically announced.
The Salam Resort was billed to be the first luxury beach community on the untouched south western coast of Bahrain, 45km from the capital Manama.
Construction on phase one of the project started in September 2007 and was due to be completed this year.
Phase one included a 288-room luxury beach hotel, seven hotel villas, a conference centre and six royal villas on a private island. The second phase was made up of a residential community and retail outlets.
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