Dubai s Emaar says mulling project cancellationsDubai s Emaar Properties said on Thursday it will consider a petition from investors to cancel or postpone projects worth more than $24.5 billion as the emirates suffer from a real estate downturn. Some 200 investors have called on Emaar, which is building the world s tallest tower in Dubai, to hold off on dramatic expansion plans after house prices fell by at least 25 percent from peaks last year. Emaar Properties has received a petition from investors regarding some of its projects and will consider their proposals seriously, an Emaar spokeswoman said in a statement. The petition by individual property buyers who call themselves the Emaar investor group calls for the cancellation or postponement of the Warsan, Asmaran and Maysan projects in Dubai launched in mid-2008. Dubai residential real estate prices have fallen by an average of 25 percent since a peak of September, Morgan Stanley said last month, adding some $263 billion of projects had been cancelled or put on hold in the United Arab Emirates. The petition is the latest setback for the property developer after being hit hard by the global financial crisis. Emaar posted a loss of 1.77 billion dirhams ($481.9 million) in the fourth quarter due to writedowns from its US unit. Robert McKinnon, managing director of equity research at Al Mal Capital said the cash-strapped developer would have difficulties paying back deposits should it cancel the projects. Depending on the scale of any rebates, Emaar may not have the cash to give back at the moment given their already strained working capital. Dubai s Arabtec, which was awarded the contract by Emaar to build more than 500 villas at the 3.4 million square foot Warsan development in July 2008, is still working on the project, its Chief Executive Riad Kamal told Reuters. We haven t received any notification. We are still working on it. A cancellation of the contract would be another blow for Arabtec, the region s largest listed contractor, which is seeking at least $460 million with Malaysian engineering firm WCT Bhd in compensation for a Dubai race course contract that was cancelled in January. Asmaran is a 70 million-square-foot hospitality development worth 90 billion dirhams launched by Emaar Bawadi, a joint venture between Emaar and Dubai developer Tatweer s Bawadi unit. The Maysan project, also launched by Emaar Bawadi, comprises three high-rise apartment towers within the Asmaran development. The Emaar spokeswoman said the firm was committed to upholding the interests of all its customers and stakeholders. – Reuters
Morocco adds new phone numbers to keep up with demand Morocco s telephone network is set to expand Saturday when over 200 million new numbers will be created to keep with increasing demand for mobile phones.The national telecoms operator ARNT said it will add an extra digit to the existing nine-digit telephone numbers from 0200 GMT.In 2008, just over two-thirds of Morocco s population – some 30 million people – were mobile phone customers.The changes mean 200 million new mobile numbers will be created and 10 million new landline numbers. – AFP
Turkish lira drops to record low against dollar Turkey s currency slid to a record low against the dollar on Friday, due to simmering tensions in world stock markets and worries about the effect of the global financial crisis on the country s economy.The Turkish lira weakened to 1.7900 against the dollar at midday Friday, after closing at 1.7520 on Thursday.Experts said the currency s fall was due to the shake-up in financial markets – driven this week by fears of more major companies collapsing, particularly in the US – which is driving investors away from the higher-risk emerging markets such as Turkey. It is the result of developments concerning General Motors and the global crisis that has been ongoing for some time, Industry and Trade Minister Zafer Caglayan said of the lira s plunge against the US currency.A warning from struggling automaker General Motors Corp. that it may have to file for bankruptcy has shaken world markets, including that of Turkey, where two-thirds of the stock market players are believed to be foreigners.The Turkish lira has weakened some 15 percent against the dollar since the start of the year. – AP
Serbia, Iran to sign free trade agreementSerbia and Iran plan to sign a free trade agreement in order to increase economic cooperation between the two countries, the economic ministry said Friday. We are planning to sign a free trade agreement with Iran which foresees a significant liberalization of exports which will enable the increase of mutual trade, it said in a statement.Serbian Economy Minister Mladjan Dinkic met Friday with an Iranian delegation led by Foreign Minister Manouchehr Mottaki, who invited Serbian companies to take part in infrastructure projects in Iran, it said.Dinkic said Serbian exports to Iran in 2008 amounted to around $40 million (?32 million), two and half times more than the year before.Serbia and Iran are reportedly considering cooperation in the oil industry, metalurgy, food trade and pharmaceuticals.Mottaki was also due to meet with Serbia s Prime Minister Mirko Cvetkovic and Foreign Minister Vuk Jeremic. – AFP
