Emaar Announces Slowdown in Saudi Arabian Flagship Project due to Tight Credit

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(SAUDI ARABIA) - In a report published by London-based MEED (Middle East Economic Digest) magazine late yesterday, an Emaar official said that because of a shortage of credit in Saudi Arabia, work on King Abdullah Economic City is being delayed. The official is Hesam Joma, executive director of projects at Emaar The Economic City in Saudi Arabia.

According to Joma, Emaar is prioritizing some projects in King Abdullah Economic City (KAEC) near Jeddah and delaying others in order to be less dependent on banks.

"We have to adapt," said Joma, speaking to a reporter during a forum in Dubai. "We are aware that on a project of this size you need the banks, but our objective is to minimise our dependence on loans, to balance what we are building with what we are selling."

Joma said that building of mid-level housing for professionals and less expensive housing for workers would continue while luxury villas would be delayed.

Previously Emaar spokesmen had said that they expected the development of KAEC to attract investment of more than 100 billion riyals or nearly $27 billion dollars.