Bahrain Employment and Career News
More than 3500 job losses likely in construction sector
Several contractors have not been paid by a major real estate developer in Bahrain, and this could lead to loss of more than 3500 jobs in the construction sector of the Kingdom.
Several major international and local contractors are said to be struggling to recover huge sums of money due to them by Riffa Views.
The four major contractors, who have been working on the project since 2006, by building luxury homes and associated infrastructure, are still owed more than BD20mn although they have been certified as being owed the money.
Riffa Views has said that they do not have sufficient funds to settle the accounts of the developers and their main financing bank has refused support to the project any more. Therefore, Riffa Views is unable to complete the project, and contractors are facing the brunt of it.
A spokesman who spoke on behalf of the contractors, said that owing to huge amounts owed by Riffa Views, the contracting firms are facing huge threat and are not in a position to continue operations in Bahrain. This may result in job losses of 3500, including those of 300 nationals.
At present, there are 250 unsold villas and townhouses in the project, largely in the Park sector, for which, the work has been suspended owing to lack of funds.
The spokesman further said that the negative impact on property market, forced redundancies, maintenance of existing Riffa Views, and credit ratings, may result in Riffa Views not being able to meet its financial obligations, and may have a long-lasting damaging effect on Bahrain economy and real estate sector.
Posted on 15/6/2012
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