The British trade minister has demanded that UK contractors in Dubai, owed at least $600 million in all, “need to be paid”, the UAE daily the National reported on Saturday.
"I think when you have a fast-expanding economy as Dubai was and then the world slows down, inevitably it takes a little bit of time to work out some of those issues, so yes, those companies, some of them need to be paid," Lord Davies said in an official diplomatic visit to Abu Dhabi.
“I think it’s an important issue, so I don’t want to de-emphasise it. Neither do I want to make it the big be-all and end-all.”
With real estate and property development in Dubai hit hard by the global recession, several foreign companies have reported trouble getting paid or are receiving only partial payments.
Studies and trade publications estimate the range of back payments to be at least $600 million to British companies and consultants alone.
But while the minister expressed concern over the money owed, he added that prospects for recovery in the UAE and long-term UK contracts appear bright.
“I think in the UK these images flash that all the expats are leaving and business is dying, I just don’t think it’s true," he said.
He added: "Let’s not move from that to saying Dubai is somehow finished. That’s just not the case.
"Has Dubai got great medium- to long-term prospects? Yes, absolutely.”