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Meltdown will Not Alter Rakaa Properties’ Abu Dhabi Projects

ABU DHABI — The Riyad-based Rakaa Properties was not planning any scaling down of its upcoming projects at Al Reem Island, one of the most prestigious mega developments in Abu Dhabi, in the wake of the current global financial meltdown.

Quoting the Rakaa CEO Dr Abdul Rahman Al Tasan, the company spokesman told Khaleej Times here that the company would go ahead with its plan to develop two residential towers at Al Reem Island, as per the original schedule.

The state-of-the-art towers to be built using Smart Building technology is estimated to value about Dh1.5 billion.

“We were about to award the contracts for the piling and other foundation works. But it was deferred because of the sliding prices of cement, steel and other related items. We have already invited the revised bids, and we would be finalising the contracts very soon,” the spokesman said.

He disclosed that one of the two buildings would have 28 floors while the other would have 32 floors. Both of them are targeting the high-end customers and almost 85 per cent of the units have already been sold out.

Asked whether the company was planning any pruning of size in the wake of the credit crunch, he said: “We didn’t recruit more people than what was required and we didn’t over expand even during the peak periods of real estate boom. Our plans were based on sound studies of the market.”

“In fact, we are planning some expansion in the region by launching some projects in the Northern Emirates,” he added.

According to him, the CEO of Rakaa Properties has made it clear that the the company perceived UAE as a potential area of economic growth.

“The UAE’s monetary policy has distinguished the country globally as transparent, whether in times of crisis or stability. The UAE unified government account holds a surplus Dh 200.7 billion, which represents an increase of 39.5 per cent or Dh72.5 billion from the figures of 2007.”

“Government support of the banking sector, which includes Dh120 billion to be submitted in two installments to active banks in the country during times of need, is the balancing factor between profit and risk, the maintenance of stability in the market, and the guarantee of cash-flow, despite the aggravating crisis.” the CEO has said.

— ramavarman@khaleejtimes.ae