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The $64bn development will cover an area of three billion square feet on the outskirts of Dubai and contain around 45 mega projects and 200 subprojects.
Launched in 2003, Dubailand was originally scheduled to open by the end of 2007, but the launch date for phase one of the development has since been revised to late 2010.
One of the main reasons cited as to why Dubailand has fallen behind schedule is that that the development has been slow to complete its basic roads and infrastructure.
Another factor that is starting to impact the development is the global financial crisis. The start of work on Asia Asia, a 6,500-room hotel that is to be the largest in the world, and the centrepiece of the Bawadi development in Dubailand, has reportedly been delayed by one year due to the credit crunch.
Numerous delays
'We are hearing a lot of negative things about Dubailand,' said Claude Attala, Managing Director, Business Development, NorthCourse, Middle East. 'Will it open in 2010? I don't see that happening. 2012 seems more likely.'
One major project, the Snowdome, is rumoured to have been shelved altogether due to issues over costs. A number of other projects have idled for years without even breaking ground.
'I think the initial problem with Dubailand was that the subdevelopers had no idea how to build theme parks,' Attala said. 'They had no idea what they were getting into. Building a theme park is not as simple as constructing a hotel.'
In the early days of Dubailand many of the projects were given over to private developers and investors. However, the Dubai government has recently gotten more involved in the development. State-owned Tatweer - which owns Dubailand - has been the sole developer on the latest projects that have been announced, including Six Flags and Dreamworks.
In any case, it appears that Dubailand is revising the scope of the development. 'There will be a scaled down approach. How much I don't know. Will we see 60,000 hotel rooms at Bawadi? I don't think it is conceivable,' Attala said.
Greater urgency
It also seems clear that there is a greater sense of urgency to get Dubailand off the ground. 'Dubailand is eager to deliver a critical mass of projects in as short a timeframe as possible to help give the development some momentum and create a buzz about the project,' said an industry source.
Dubailand as master developer had initially sold land at low prices to private developers who were to build the development's theme parks, but many of these companies have failed to deliver their projects in a timely manner.
With so much at stake, Dubailand has taken over control of some of the projects that have fallen behind schedule and will build the parks themselves. In April, Tatweer, which is a subsidiary of Dubai World, said it had taken control of the development of the Marvel Super Heroes theme park.
Most recently, Tatweer has taken control of Al-Kaheel, a $436m development that will feature an equestrian centre, indoor and outdoor arenas, 400 villas, and a hotel.
However, questions have been raised about how Dubailand will be able to finance these projects given the current liquidity crisis. 'With banks tightening their lending Dubailand will find that that their prospects for obtaining funding are limited,' the source said.
Jeff Florian, Senior Reporter
