September 2 2009

Most investors in the AED20 billion ($5.4bn) Awali City project in Ajman have stopped payments for the past eight months, it was revealed on Monday.

The project is likely to be resized by up to half its original size as the global economic crisis continues to impact, master developer Awali Real Estate Investments said.

"There are 136 plots of land and all had been sold at the time of launch. Most of our investors have stopped paying us for the past eight to nine months and so we are in talks with every one to find out their plans," said Amal Amir, sales and marketing manager, Awali Real Estate Investments, said in comments published by Emirates Business.

"We will be reworking the master plan once we get feedback from all our investors."

Amir told the paper the company has not forfeited any deposits nor cancelled any contracts as such steps have to be taken after informing the Ajman Real Estate Regulatory Agency (Arra).

Earlier this month, Arra Director-General Omar Al Barguthi said developers will not be allowed to arbitrarily cancel any sales and purchase agreements without permission.

Separately, Ras Al Khaimah-based Saraya Development Group said it was suspending sales of its $1.4 billion project citing a lack of availability of electricity.

Omar Agha, Saraya's managing director, said the suspension of sales was temporary and the project had not been cancelled or put on hold indefinitely.

Source: Arabian Business