Al-Mazaya Holding Co. (MAZAYA), a Kuwait- based property developer, plans to reduce its business in Dubai, Chief Executive Officer Nayef Mohammed Al-Awadi said, citing difficulties.
“We want to reduce our exposure in Dubai because of difficulties with existing infrastructure and master developers,” Al-Awadi said in an interview today in Kuwait.
Construction companies in the United Arab Emirates are searching for work in other markets after $964 billion in projects were halted or canceled in the country as of last November, Citigroup said in a Jan. 6 report.
Al-Mazaya, which posted a profit of $3.4 million in the first quarter of this year, is “doing well from an operational point of view but unfortunately, the decline of our assets in Dubai has affected us,” Al-Awadi said. Growth in 2012 will depend on the value of assets at the end of the year, he added.
The company isn’t planning any projects until 2013 and is occupied with existing projects, mainly in Dubai, Al-Awadi said. Al-Mazaya plans to focus on Saudi Arabia’s residential market, where it sees strong demand, he added.
Al-Mazaya shares were unchanged at 70 fils ($0.25) at the close in Kuwait today. The stock has gained 13 percent this year.
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