MILAN — Dubai’s pressing real estate and financing troubles are causing delays in many Italian fashion houses’ projects throughout the city, among the woes of the struggling emirate.
To help ease the financial strain, the Dubai government this week launched a $20 billion long-term bond program. The Central Bank of the United Arab Emirates bought the first issuance, amounting to $10 billion, according to an official Dubai statement.
This infusion will provide the Dubai government with the necessary cash flow to make up for money that has dried up globally in the last 12 months, the statement said, and accordingly “meet all upcoming financial obligations and continue its development program.”
This underscores the depth of the economic problems facing Dubai, which relies on real estate investment for its financial well-being, unlike some of its Arab neighbors, which are oil-rich.
The opening of Giorgio Armani’s first hotel has been pushed back to 2010 from the slated date of next September, according to sources, although the residence portion of the project is still scheduled to open this fall. Palazzo Versace will also open early next year, not in 2009, as confirmed by a spokeswoman.
Armani’s project in Dubai is through an agreement with real estate giant Emaar Properties, whose sales and property prices have been impacted by the industry’s slowdown. In 2008, Emaar recorded a 15 percent drop in net operating profits to 5.57 billion United Arab Emirates dirhams, or $1.52 billion at average exchange, on a 10 percent drop in annual sales to 16 billion dirhams, or $4.35 billion, compared with 2007.
“Emaar is concentrating on completing all the projects that have commenced construction and has put new projects and launches on hold to [help] reduce the real estate property supply in Dubai,” Emaar said as it posted its financial results this month.
Chairman Mohamed Alabbar said, “Our primary focus in the last quarter of the year was to mitigate the negative impact of the global financial crisis by facing up to the new economic realities and identifying innovative strategies to sustain businesses.”
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion