Dubai's Meydan Terminates Racecourse Construstion Deal With WCT!

Posted on Business Times:

• Dubai axes racecourse deal with WCT Engr
  
  Published: 2009/01/06
  
  DUBAI: Dubai’s Meydan LLC said yesterday it has cancelled a racecourse construction deal with Malaysian construction firm WCT Engineering Bhd and local firm Arabtec.
  
  A Meydan statement did not give a value for the deal, but WCT said in 2007 that its 50-50 joint venture with Arabtec had won a US$1.3 billion contract to build the racecourse in Dubai.
  
  The contract was cancelled “because of non-adherence to the agreed time schedule for construction,” Meydan said in the statement.
  
  Arabtec officials could not be reached for comment.
  
  Meydan is taking steps to commission other companies to complete the racecourse by 2010, when it is to be opened with the Dubai World Cup horse race, the statement said.
  
  The racecourse is designed to include a 1 km (0.6 mile) grandstand and capacity for up to 60,000 spectators.
  
  Because of the global financial crisis and falling construction costs, Gulf Arab countries have cut back on some large projects or tried to renegotiate costs with contractors. - Reuters

Source: here

Bad news for WCT Engineering!

Would we see more termination of contracts from Gulf Arab countries?

Judging from the drastic decline in the crude and the impact on their stock markets (see the following blog posting last year: Crisis Hit Arab Nations, Sending Stocks Into Tailspin ) and the current global financial crisis, I would not discount this from happening again!