Job losses at Limitless and delay to Arabian Canal

Limitless has delayed awarding contracts for the second excavation phase of the Arabian Canal.

Developer Limitless confirmed that it had cut 7% of staff, and delayed the award of contracts for the second excavation phase of the Arabian Canal, in response to the global economic downturn.

Limitless, the property arm of investment giant Dubai World, said 38 redundancies were made at its headquarters in Dubai and in other offices around the world.

“We have made a difficult but necessary decision in response to current market conditions. Unfortunately, this means taking the painful step of laying off a small proportion of staff," a spokesman for the company said.

Yesterday the developer also announced it had postponed the award of contracts for phase two of excavation at the 75km long Arabian Canal project.

In October last year the company tendered contracts for the next stage of excavation and insisted it had seen ‘a healthy response’ from local and international firms.

It blamed its decision to delay the procurement process on ‘market conditions’.

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“Our invitation for bids on phase two of the excavation received a healthy response from local and international firms. We have contacted them all to advise them of the postponement of the award of this contract, and have reassured them that we will be in touch as soon as possible to invite them to resubmit their bids,” the spokesman added.

The earthworks are planned over ten phases, over the next 15 years.

In September 2007, the contract for the first phase was awarded to Tristar Contracting, who began work in October.

Work on the first phase of excavation continues.

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