A property company makes provisions of more than Dh181 million after customers who bought homes in the development defaulted on their repayments.
Al Mazaya sets aside $49m over Dubailand
A property company that heavily invested in Dubailand has made provisions of more than Dh181 million (US$49.2m) after customers who bought homes in the development defaulted on their repayments.
Al Mazaya Holding, which lists its shares in Dubai and Kuwait, lost Dh112.5m last year. It did not provide figures for 2009.
Developers countrywide have racked up losses on soured projects this year after developments ran out of cash and customers failed to make mortgage payments.
"Al Mazaya did everything possible to maintain its relative stability throughout 2010," said Rashid Yaqoob al Nafisi, the chairman. Dubailand,on the outskirts of the city, failed to attract sufficient investment to build more than a handful of the original 45 theme-based developments planned. Al Mazaya said investors had defaulted on projects including Business Avenue Towers in Jumeirah Lakes.
* The National