Contractors must be paid, says British trade minister |
|
Network this!
British contractors and suppliers in Dubai that are owed money "need to be paid", the British trade minister, Lord Davies, said during a visit to Abu Dhabi.
Several reports have emerged in recent months of foreign companies working in Dubai's flagging construction industry being asked to accept only partial payment for work that has been completed.
In other cases, a range of consultants, suppliers and other firms lower down the property development ladder are struggling to stay in business as they wait to be paid.
Earlier this year New Civil Engineer, a UK trade journal, cited an analyst who estimated that British consultants in Dubai alone were owed Dh2.2 billion (US$599m).
"I think when you have a fast-expanding economy as Dubai was and then the world slows down, inevitably it takes a little bit of time to work out some of those issues, so yes, those companies, some of them need to be paid," Lord Davies said.
"I think it's an important issue, so I don't want to de-emphasise it. Neither do I want to make it the big be-all and end-all."
While acknowledging the severity of the problem, Lord Davies described it as a cyclical symptom of the global financial crisis that ultimately would heal itself.
Long-term economic prospects for Dubai and the rest of the Emirates were bright, he said.
"It's an international phenomenon, it's not just a Dubai phenomenon. People are owed money and they have to be paid. But on the other hand, let's not move from that to saying Dubai is somehow finished. That's just not the case.
"I think in the UK these images flash that all the expats are leaving and business is dying. I just don't think it's true. Is there a correction going on? Absolutely. Is it a painful one? Yes. But has Dubai got great medium- to long-term prospects? Yes, absolutely."
Lord Davies's visit to Abu Dhabi follows months of increased diplomatic activity aimed at stoking cross-investment between the UK and UAE. The UK prime minister, Gordon Brown, visited last November, and Lord Mandelson, the business minister, visited in April.
On Thursday, Lord Davies met Sheikha Lubna Al Qasimi, the Minister of Foreign Trade, as well as officials of the Abu Dhabi Investment Authority, the sovereign wealth fund, and Mubadala Development, the Abu Dhabi Government's strategic investment arm. He also visited the carbon-neutral Masdar City project and the airport extension nearby.
The visit was Lord Davies's first to the UAE since Mr Brown appointed him minister for trade promotion and investment under Lord Mandelson in January. He is a former chairman and chief executive of Standard Chartered Bank, a job that saw him visiting the region frequently.
While Lord Davies emphasised the long-standing commercial links between the UAE and Britain - exports from the UK last year were worth £3.7bn (Dh22.2bn), a 34 per cent increase on the year before, and imports were worth nearly £1.3bn - he said more could be done to enhance co-operation between the two nations.
Renewable energy and low-carbon technologies would be the centrepiece of efforts to bring in more British business, he said. Masdar City would require services and expertise that British firms could supply, for example, and Abu Dhabi's selection as the location of the headquarters of the International Renewable Energy Agency last week only added to its importance as a centre for renewables.
"If you look at what's happening with the airport, if you look at what's happening with the development of renewables and the low-carbon industry generally, if you look at the way this place is changing, the need for creative industries and the way that they've also developed technology and science, that plays to our strengths as the British economy," he said.
Small British businesses in particular could stand to increase their presence in the UAE, inking partnerships in industries ranging from construction to renewable energy, Lord Davies said. These businesses often did not consider coming to the UAE because of a lack of awareness about the pace of development and the scale of emerging business opportunities.
"This is very exciting stuff," he said. "Britain is very, very determined at every level, [at the] political and business levels, to develop a closer strategic tie in Abu Dhabi."
By Asa Fitch
© The National 2009
Loading ...-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Loading ...
from issuers in both public and private sectors. It is not an e-tendering service and is entirely FREE.
As an Issuer, you can benefit from posting an unlimited number of Tender
Notices for FREE and reaching out to an online community of bidders.
The service also offers you a tool to track the interest of bidders to your
tenders 'live' online.
| Construction Tenders | Due Date |
Stories
Companies
| Company Name | Country | Industry |
| Consolidated Contractors Company | Overseas | Construction and Design |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Saudi Electricity Company | Saudi Arabia | Electric Utilities |
| Saudi Telecom | Saudi Arabia | Telecommunications Services |
| Emirates Telecommunications Corporation | UAE | Telecommunications Services |
| Sharjah Electricity and Water Authority | UAE | Electric Utilities |
| Al Azizia Panda United Company | Saudi Arabia | General Retailers |
| Hyundai Engineering and Construction Company - Saudi Arabia | Saudi Arabia | Construction and Design |
| National Commercial Bank | Saudi Arabia | Banking |
| Commercial International Bank (Egypt) | Egypt | Banking |
Projects
| Project Name | Country | Sector |
| Takreer - Ruwais Refinery Expansion | UAE | Oil and Gas |
| Al Futtaim Carillion - Marina Hotel (Yas Island) | UAE | Real Estate |
| Emirates Aluminium (EMAL) - Smelter Complex - Phase 1 | UAE | Industry |
| Abu Dhabi DOT - Abu Dhabi Metro | UAE | Infrastructure |
| SATORP - Jubail Refinery and Petrochemical Complex | Saudi Arabia | Oil and Gas |
| ENEC - Nuclear Power Plant | UAE | Power and Water |
| Dubai RTA - Dubai Metro | UAE | Infrastructure |
| Al Safwa - Jeddah Cement Plant | Saudi Arabia | Industry |
| Qatar Bahrain Causeway Foundation - Qatar Bahrain Causeway | Qatar | Infrastructure |
| Qatar Bahrain Causeway Foundation - Qatar Bahrain Causeway | Bahrain | Infrastructure |
what i don't understand is how an internal economic matter of a soveriegn state (the UAE) bothers the british minister. should he not be more concerned about his own country's economy? [Report Abuse | Email to a Friend | Reply to this Comment]