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Deyaar Puts Unsold Projects on Hold, Sees Record Q4

Markus Giebel told reporters the company had put “many projects” on hold adding “it’s wrong to deliver units which have not been promised to the customer”. Gibel did not give figures when asked about his profit forecast for 2008 and the fourth quarter, but said: “The increases are substantial, We have a record breaking quarter and year.” Deyaar has an 8 per cent debt to equity ratio, making it almost “debt free”, Giebel said.

But he predicted that the financial crisis will dog the sector for a least six more months. “People say it will be over in the first quarter. No way. It’s not a process to be completed in the next six months.” Deyaar will deliver five residential and commercial projects in Dubai in 2009, he said, adding it has around 22 projects in the emirate, worth between Dh20-25 billion ($5.45-6.81 billion), under construction, Giebel said. Deyaar is in negotiations with a Saudi firm to develop a master community in Jeddah, worth Dh20 billion, he said. Giebel said he expected there to be a reduction in the number of developers in Dubai in 2009 as a result of the financial turmoil.