Several Dubai-based contractors say they are owed millions of dirhams by state-linked developers and some may face bankruptcy as credit dries up and major projects are cancelled or scaled back in the former Gulf Arab boom town, Reuters reported. "There has been a marked increase in the number of contractors asking for help to obtain payment, including payments certified months ago on some of Dubai's largest projects," Michael Grose, a partner at legal firm Clyde & Co LLP, in the Middle East Projects and Construction Group, told Reuters. As the global financial crisis began to hit the seaside emirate late in 2008, major government-linked developers behind some of Dubai's high profile projects have put work on hold and cut jobs. Around $75 billion worth of projects in the United Arab Emirates have been suspended or cancelled altogether according to an HSBC report issued in January. In response to a Reuters query, government-linked developer Emaar Properties EMAR.DU, the largest listed Arab developer, said payments were based on a credit cycle and other conditions and that those that qualified would be paid. Read more.
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