GCC-based companies are divided on whether the credit crisis will impact the financing of their planned projects. Tamweel reaffirmed plans to launch a sukuk in 2009 despite the credit crisis while Kuwaiti-based Abyaar Real Estate is delaying a planned $1 billion sukuk. An Abyaar Vice President gave the following explanation: "We have postponed the bonds until a better time. No way any company can issue sukuk now. There is no cash."
Tamweel and Amlak, two government controlled real estate companies in Dubai, are in merger talks. Research analysts are not convinced that the combination makes sense because it does nothing to alleviate their need for large amounts of funding and could provide a distraction to the management away from continuing growth. The companies' press release was a little more upbeat concerning the possibilities for growth created by a possible merger.