Costs not an issue for $54.4bn mega eco project

The development of Dubai Properties' 200 billion-dirham ($54.4 billion) mega eco project will not be impacted by soaring construction costs, the company's executive chairman said on Tuesday.

Labour and raw material costs have soared in the UAE over the last year due to record high oil prices and the falling value of the US dollar - to which the dirham is pegged - putting further pressure on developers already struggling to finish projects on time and on budget.

Mohammed bin Rashid Gardens, announced earlier this month, will be spread over 82-square kilometres between Al Khail and Emirates Road and include four built-up clusters as well as huge areas of greenery interspersed with large lakes and canals.