Source: ArabianBusiness.com 29 October 09
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Many UK companies are still owed money by Dubai developers for work completed, it was reported on Thursday. Some UK contractors are turning down invitations to chase work in Dubai because of continuing doubts over whether they will be paid on time, it was reported on Thursday.
According to Nelson Ogunshakin, the chief executive of the UK Association for Consultancy and Engineering (ACE), a significant number of UK firms are still owed money by struggling developers in the emirate, UAE daily The National reported.
Almost £400m ($660m) is reportedly owed to UK consultants and engineers in unpaid fees from work undertaken in the UAE, ACE said in April.
“A substantial part of that is outstanding,” Ogunshakin told the paper. “There’s a dialogue going on between various government departments and clients, with a view to easing the process and ensuring payments come through.”
He added that firms which had been paid were forced to take a discount of up to 30 percent as developers braced for further losses.
Foreign contractors operating in Dubai continue to report payment problems despite moves to ease liquidity through a $20bn bond programme, the paper added.
I too have heard that companies are avoiding Dubai in large numbers including certain railway contractors
ReplyDeleteThat's *very* interesting Dave as there's a very grand rail plan being proposed here. Meanwhile over the border the litigation resulting from the failures in the Saudi rail development grind on into the 3th or 4th year.
ReplyDeleteApparently the lack of opening of no more than ten stations of the Dubai Metro had nothing to do "running behind schedule"but more to do with withdrawal of services by the principal contractor until minimum payment terms were met by the Govt authorities.....
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