High Profile Projects Are Being Delayed or Canceled

Friday, January 23, 2009, 12:55 PM | Leave Comment

No one and I mean no one is immune to the market meltdown and the credit crunch that the U.S. economy is facing and experiencing. It’s like a computer virus that is spreading all over the world and diminishing the wealth of the wealthiest. The recent news is that a $2 billion dollar luxury beachfront development close to the Bahrain Formula One racetrack is the latest high profile project in the Middle East to be canceled.

Sama Dubai, owned by the ruler of the Bahrain emirate, has pulled the plug and cancelled its deal with South Africa’s Murray & Roberts and Bahrain’s Nass Corporation to build the Salam resort.

The firm did not give a reason for the project being cancelled but it is widely assumed that it is connected with the global economic downturn which has seen other high profile projects in the region delayed or cancelled.

Bahrain until now has not been as badly hit, but the small kingdom island is beginning to feel the effects of the global economic crisis as projects financed by banks and developers from the rest of the region are being delayed.

Moral of the story
When there is a credit crunch, market meltdown in the U.S., its effect is felt all over the world. When America sneezes, the rest of the world catches cold, even in the “desert kingdoms” of the Middle East.

What do you think?

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