Pic credit: WAM
Dubai will rely on its “own resources” to finance some of the multi-billion dollar projects that it announced in the last two weeks, a senior official has said.
“We do have our own resources and we are sure that these projects will be achieved,” Hani Al Hamli, the secretary general of the Dubai Economic Council was quoted as saying by local media reports.
Last week, Dubai’s ruler Sheikh Mohammed Bin Rashid Al Maktoum announced plans to build a massive tourism and retail development, which will include the world’s largest shopping mall, over 100 hotel facilities and a park 30 per cent bigger than London’s Hyde Park.
The project, called “Mohammed Bin Rashid City”, will also include an entertainment centre developed with Universal Studios.
Earlier this week, Dubai also revealed plans to build a Dhs10 billion ($2.7 billion) complex of five theme parks.
The financing for these projects will come within the UAE, said Al Hamli.
“We are part of a bigger unit, the UAE, and there are neighbours [Abu Dhabi] with massive natural resources.
“We also have excellent relationships with Asia, especially the two main developers, Emaar and Dubai Holding,” he added.
Dubai’s economy was badly hit during the economic downturn in 2008/ 2009, and the emirate was forced to cancel or suspend work on many of its extravagant projects.
A recent report by property consultants Christie and Co found that 25 per cent of the UAE hotel projects in the pipeline have been put on hold. The study also found that out of the 70,000 rooms in the pipeline, 21 per cent of the projects have been postponed.
“Projects are most likely on hold due to lack of financing,” explained Gavin Samson, managing director, Christie and Co MENA.
The UAE central bank also issued new regulations earlier this year that restricts bank lending to government and government-related entities.
However, Al Hamli was confident that the developers of these new projects will have access to bank loans.
“I am sure there’s a way of finding loans with a good interest rate and good maturity,” he said.