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FINANCIAL NEWS
Abu Dhabi keen to pay off its debts to contractors
26 Jun 2012
(MENAFN) The Abu Dhabi Office of Government Communications said that the government has taken appropriate steps to ensure its entities’ financial obligations are met, Reuters reported.
The statement did not give any further details on what measures had been taken.
Construction companies, consultancy and architectural firms have faced slow and irregular payments from some Abu Dhabi government-linked entities, in some cases leading to severe financial difficulties.
For the past decade, the oil-rich emirate has been spending billions of dollars on a wide range of infrastructure and tourism projects, creating a construction boom that attracted contractors from all over the world.
Following the global financial crisis, Abu Dhabi had to tighten spending, and last year launched a strategic review of government spending that saw major projects pushed back, funds frozen and numerous top-level management changes.
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