The confirmation comes just six months after the launch of the project and the announcement of sales of US$2.7bn, which represented the first wave of income from Phase One of the project and demonstrated the strong international investor interest in the new coastal city.
Mr Nasser Chammaa, Chairman and Chief Executive Officer of Solidere International, and Board Member of Al Zorah Development Company, has provided the update on Al Zorah, Ajman's largest real estate development to date, in light of the current economic situation:
"After successful land sales of US$2.7 billion earlier this year we have a strong balance sheet and a good cash position to support the development of Al Zorah. We are comfortable with our current position and pleased with progress on infrastructure development, which includes roads, and very soon, marine works, which we can definitely finance from our own funds, withour any recourse to any debt finance."
He went onto highlight one benefit of the current market situation:
"With overall business slowing in real estate development we are now in a better position to negotiate with contractors and bring prices down. We see this situation remaining for the foreseeable future as we undertake all preliminary development work prior to developers starting construction on individual projects – this is bringing significant benefit to our cost position," he said.
Dr Chammaa also acknowledged the current financial situation: "The world is facing a significant change in economic activity and real estate developers everywhere will experience the effects. However, the long-term outlook is favorable for companies with a strong financial foundation like Solidere International and Al Zorah."
Al Zorah is a 12 square kilometer new coastal city being built in the Emirate of Ajman and located along pristine beachfront. It will be a self-contained, master planned residential, business and leisure community. It is being built by the Al Zorah Development Company a joint venture between the government of Ajman and Solidere International.
Solidere International is a leader in urban planning and the development of large scale projects in the Middle East, with projects currently underway in the UAE, Egypt, Saudi Arabia and Europe.
