Dubai International Financial Centre (DIFC) Investments, the major stake holder in Dubai Pearl, has pulled itself out of the project. Dubai Pearl, the US$3.8 billion (Dh13.95bn) project, overlooking Palm Jumeirah has witnessed a slowdown in construction activity following the loss of its major stakeholder.
DIFC Investments had a deal of purchasing 29 floors in the east tower of Dubai Pearl. But the investment house paid only $13.6 million towards the deal. According to the chief executive of DIFC Investments, the company has no commitment beyond $13m. The deal was one of the major announcements in the peak of property boom.
Industry experts analyze the situation to be pathetic. Office space is oversupplied, with over 50 per cent vacancy rate by the end of this year. There is a sharp decline in building activity across UAE. Developers are struggling to find investors and funds for completing the projects that have been stalled due to the downturn in the late 2008.
Dubai Pearl is no less than others. A recent visit to the site found involvement of few workers and little progress on the construction front.However, the company said that the first phase of the project is as per the schedule.
Dubai Pearl Holdings, which is the parent company of Pearl Dubai FZE, the builder of the project, has Al Fahim Group and others as holders of $73.5 m worth shares. Though Al Fahim Group is a major investor in the project, it is unclear about the holdings the company has in the project.