Dubai Developers Struggle To Pay Bills

DubaiForeign construction firms have revealed that they are owed billions in unpaid invoices from Dubai property firms.

Some Japanese companies have said that they are owed so much money that they are starting to struggle. According to Otsuka, an Abu Dhabi based newspaper, among those companies affected are Mitsubishi Heavy Industries Ltd and Taisei Corp.

Dubai property development firms have struggled in recent months after the global economy took a beating, helping cause the property bubble in Dubai to burst. The Dubai property market has seen mortgage lending slump, property prices slump up to 50 percent in some areas, and a lack of people looking to buy.

Some Dubai property developers have requested discounts of up to 35 percent on existing invoices in a bid to slash costs and reduce the amounts they owe. There is now also a $20 billion state fund in place to help state-related companies through the Dubai property slump and it is expected that this fund will be topped up with a further $10 billion later this month.

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