Text size:

  • Small
  • Normal
  • Large

Tameer 'reviewing' Reem Island contracts

The Dubai-based property developer says it is "reviewing" its construction contracts for the $1.6bn Tameer Towers.

ABU DHABI // Tameer Holding, a Dubai-based property developer, is "reviewing" its construction contracts for the US$1.6bn (Dh5.87bn) Tameer Towers on Reem Island. Sources close to the company said the developer was planning to cancel the construction contracts with Al Habtoor Engineering, Murray & Roberts and Al Rajhi Contracting. However, one option the company was considering was to hire the same contractors at renegotiated prices, the source said. "Tameer is reviewing the construction programmes and associated costs for its iconic Tameer Towers project on Al Reem Island," a company official said. "Tameer confirms that the Tameer Towers project is moving ahead. The enabling works are complete. Residential sub-structure works will commence upon completion of this assessment." Property developers have been renegotiating construction contracts as prices for materials such as steel and concrete decline. In some cases, developers have passed on those savings to buyers through lower home prices to spur sales.

Cancelling construction contracts can lead to drawn-out disputes, as is proving to be the case with one large project in Dubai. Earlier this year, the Meydan City project for a racecourse and development in Dubai cancelled its construction contracts with Arabtec and a Malaysian engineering firm, WCT. Last week, the company hired China State Construction Engineering Corporation and Mammut Building System to finish the project. But Arabtec and WCT are seeking Dh1.65bn through arbitration proceedings because they say Meydan broke its contract agreement. Tameer, which is majority owned by the Al Rajhi Investment Group in Saudi Arabia, sacked more than half its employees, or 180 people, late last year as the property sector swung into a downturn.

Tameer Towers is planned to be a central project of the Shams Abu Dhabi development on Reem Island. The project includes six towers, including four residential buildings, one commercial building and a hotel, as well as other facilities. Sorouh Real Estate is the master developer of the site. Gurjit Singh, Sorouh's chief property development officer, declined to comment on the Tameer project specifically, but said the Shams Abu Dhabi project was making "rapid progress" with the Sun and Sky towers expected to reach their final height soon. "In the current global economic climate, it will not be surprising if some developers choose to delay some projects," Mr Singh said. "But such delays will not impact Sorouh or its projects. A development such as Reem Island is a long-term project and short-term delays will not be significant issues." bhope@thenational.ae

Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Miele coffee maker making Cappuccino at Miele Gallery in Sama Tower in Dubai. The cost of this coffee maker is around Dh 17,000. Pawan Singh / The National

Space-age coffee comes at a price from Miele

Miele have taken the coffee machine to a new level with its Dh17,000 offering that is built into your kitchen.

 The bridge of Seajacks Hydra, as the wind farm installation vessel undergoes finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014. Jeffrey E Biteng / The National

In pictures: Building the Seajacks Hydra

The Seajacks Hydra, a wind farm installation vessel, is undergoing finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The rush of new supply of hotel rooms pushed Dubai occupancy rates down to 87 per cent. Sarah Dea / The National

Dubai hotel room rates rise 10 per cent

The rush of new supply pushed occupancy rates down to 87 per cent, a dip of 2.6 per cent from the previous year. Winter months are the strongest for Dubai hotels, with occupancy and prices falling to half their peaks by July.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National