Dubai Holding, the investment vehicle of the emirate's ruler, has announced a $20 billion (nearly Rs 1.33 lakh crore) project to develop a new district in the city, signalling the emirate plans to keep growing rapidly despite the impact of low oil prices on the region. The first phase of Jumeirah Central, estimated to cost 24 billion dirhams ($6.5 billion or Rs ​43,242.8 crore), is to include 2,800 hotel rooms and 3,000 apartments. That project was announced in mid-2014, just as oil prices began falling sharply. Mohammad Kamal, a research analyst at Dubai-based Arqaam Capital, said that while Jumeirah Central could provide new business for construction companies in the region, they were struggling with difficult conditions in the industry. "Overdue receivables linked to suspended or cancelled projects remain prone to write-down risk, and cash flows remain weak in a historical context," he said.

Source: dna September 05, 2016 03:33 UTC