Dubai Properties to move ahead on Rashid Gardens despite cost pressures
Mr Hashim Al Dabal executive chairman of Dubai Properties said that the development of its AED 200 billion mega eco project Mohammed bin Rashid Gardens will not be impacted by soaring construction costs.
Mr Al Dabal said that "There are always big challenges when building in Dubai, sometimes its supply and demand or prices going up or location issues. But there is always a solution, we worry about the market as a whole, not it terms of just one cost area."
Mr Al Dabal said that Dubai Properties would finance the initial work on the project and seek outside investment later on in its development. He added that "Here we will use a two stage strategy where the infrastructure will be funded by the company and later on we will engage other developers and market investors for another source of funding."
The four clusters, themed around wisdom, nature, humanity and commerce, will each have an iconic building at their centers. The House of Wisdom will include a library, international universities, history and science colleges and the Sheikh Mohammed Mosque. The House of Humanity will include the Mohammed bin Rashid Al Maktoum humanitarian & charity establishment, the museum of light, the human civilization museum and other charities such as UNICEF. The House of Commerce will include banks, financial services firms and insurance companies, as well as higher educational institutions that specialize in banking and finance. Dubai Properties will oversee the project, which will be carried out in 6 stages.
It may be noted that labor and raw material costs have soared in the UAE over the last year due to record high oil prices and the falling value of the US dollar, to which the dirham is pegged, putting further pressure on developers already struggling to finish projects on time and on budget.
Mr Al Dabal said that "There are always big challenges when building in Dubai, sometimes its supply and demand or prices going up or location issues. But there is always a solution, we worry about the market as a whole, not it terms of just one cost area."
Mr Al Dabal said that Dubai Properties would finance the initial work on the project and seek outside investment later on in its development. He added that "Here we will use a two stage strategy where the infrastructure will be funded by the company and later on we will engage other developers and market investors for another source of funding."
The four clusters, themed around wisdom, nature, humanity and commerce, will each have an iconic building at their centers. The House of Wisdom will include a library, international universities, history and science colleges and the Sheikh Mohammed Mosque. The House of Humanity will include the Mohammed bin Rashid Al Maktoum humanitarian & charity establishment, the museum of light, the human civilization museum and other charities such as UNICEF. The House of Commerce will include banks, financial services firms and insurance companies, as well as higher educational institutions that specialize in banking and finance. Dubai Properties will oversee the project, which will be carried out in 6 stages.
It may be noted that labor and raw material costs have soared in the UAE over the last year due to record high oil prices and the falling value of the US dollar, to which the dirham is pegged, putting further pressure on developers already struggling to finish projects on time and on budget.
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