Emaar closes office in Algeria

Emaar Properties has closed its office in Algeria due to a lack of progress on its projects in the North African country, it said.

"Emaar created designs for key developments in the country and the master plans were submitted to the authorities for necessary approval," said Emaar.

"Due to a lack of progress which is beyond the company's control, the office set up to drive these projects forward has now been closed," said the company.

In March 2008, Emaar and the Algerian Government signed a protocol accord on the development of $20 billion (Dh73.4bn) worth of projects, the biggest ever property development in the country.

Some major North African real estate projects have been delayed or quietly abandoned as firms hit by the global downturn retreat from a frontier market dogged by an opaque business environment and heavy bureaucracy.

At the end of last year, Emaar's United States home builder John Laing Homes was forced to seek Chapter 11 bankruptcy protection and the company posted a 74 per cent drop in first-quarter profit as the property slump hit sales and deliveries.

As the downturn took hold, Emaar, along with other Gulf property groups that had unveiled multi-billion-dollar deals in recent years, has been forced to focus on home markets or on foreign investments.

Emaar did not state whether all of its projects in Algeria had now been cancelled, but said it was "open to investments in the country in line with its strategy of developing its projects in international markets".

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