Article: Nakheel puts Palm Deira work on hold: market turmoil forces developer to shelve dredging work at Dubai's ambitious landmark development.(CONSTRUCTION: UAE)

Dredging work on Palm Deira has stopped as local developer Nakheel scales back its work on the world's largest man-made island amid growing concerns over the impact the credit crunch will have on Dubai.

The order to stop work is the clearest sign yet that the global financial crisis is having a major impact on Dubai's real estate sector.

Contractors for Nakheel are thought to have been instructed to stop dredging and reclamation work on the outer sections of the island immediately, as uncertainty over the project's economic viability grows.

"Dredging contractors working on Palm Deira have been told to stop work," one source close to the project ...

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