UPDATE: Nakheel restarts work at Al Furjan project
Troubled developer restarts portion of residential project
Nakheel, the debt-laden real estate arm of Dubai World, on Wednesday said it had restarted work on its Al Furjan Project in Dubai.
Nakheel earlier this year had delayed payments to contractors and suppliers causing contractors to suspend work at the 560-hectare Al Furjan project after building only 500 of a planned 4,000 homes.
The developer has instructed Al Shafar Transport and Contracting Co to restart its portion of the project, it said in an emailed statement.
“We expect that all short term projects will be fully mobilised by October 2010,” the statement said.
Arabtec is also anticipating a restart to its phase of the large residential development.
“Arabtec fully expects that when current financial issues are formalised, Nakheel will instruct Arabtec to recommence works on its contracted Phase of Al Furjan Villas,” said Thomas Barry, CEO of Arabtec Construction, in a statement to Construction Week.