Higher construction costs damage Nakheel profits

Published May 2nd, 2006 - 07:36 GMT
Al Bawaba
Al Bawaba

Higher construction costs are squeezing profit margins for Dubai real estate giant Nakheel. However, some of the increase is being passed on to consumers, a senior company official told Reuters. Hamza Mustafa, general manager of Nakheel project "The World" said most of the pressure on margins comes from growing costs for steel and cement.