At 62 storeys, the £520 million tower was intended to be a centrepiece of developer Nakheel’s Palm Jumeriah project. But contractor Leighton Holdings confirmed that work has been suspended, blaming ‘easing market conditions’.
The news is a further setback for Nakheel, which has reportedly agreed to cover all costs incurred to date. Yesterday, the developer announced that it will cull 500 staff, 15 per cent of its workforce.
In June this year a buyer offered $3,000 (£2,000) per square foot, or close to $30 million (£20 million) for a penthouse in the development, more than twice the going rate of Dubai's next most expensive properties.
Read more about Dubai as an emerging market in this week’s AJ, published on 4 December.