Al Zorah project downsized in face of real estate slump

AJMAN, UAE, Dec 12, (RTRS): Ambitions for the $60 billion Al Zorah real estate project have been scaled down as the United Arab Emirates experiences a widespread real estate slump, two executives involved in the project said on Tuesday. Al Zorah, located along the coastline of the UAE emirate of Ajman, will aim to accommodate some 50,000 people, down from an original goal of 200,000, Oussama Kabbani, the chief operating officer of Lebanese developer Solidere International Ltd, said.

Solidere is building Al Zorah jointly with the government of Ajman, one of the smallest emirates of the seven-member UAE federation, which has been trying to catch up with more developed neighbours in Dubai and Abu Dhabi.

The project’s chief executive Imad Dana said the development is offering relaxed payment plans in response to tough market conditions, and added that it will take at least 15 more years to complete the project, which was due to be finished by 2023. About half of the land originally set aside for Al Zorah was returned to the Ajman government in 2010, Dana said.

The developers’ ambitions were crimped as property prices dropped throughout the UAE over the last year, with supply continuing to expand despite subdued employment growth and less robust demand for housing. Kabbani said the decision to downsize was prudent, given the sales slowdown throughout the sector, and added that the company will weather the real estate cycle.

Al Zorah is now exploring joint ventures with investors and other developers to fund plans for residential and commercial facilities in the project, the two executives said.