According to the UAE daily The National it has been reported that the $20 billion project of the Blue City which was about to start in Oman is undergoing a phase of economic decadency.

Many reasons have been identified which contribute to this collapse among which primarily include the postponement in the designing of an ingenious plan and the conflicts arising from the long procedures of law. The ratio of the capital input and the revenue generated is also quite uneven. This is justified from the fact that the company was only able to achieve $31 million despite of its anticipated target of 101million.

As per the quote of Richard Russell, Chief Executive of Blue City Company 1 given to the National, “We’ve had progress on collections, but there is still more to go."

The shortcomings in the performance has also plunged the company into substantial amounts of debt for which it has to compensate.

“If sales performance does not improve significantly over the coming months and quarters, the borrower may eventually struggle to continue funding the construction costs of the project," the report said

The senior officials of the company have neglected all such statements and have reassured investors that the project will be completed in the year planned i.e in 2012.

They also said that in the up coming years golf courses and many apartments will be put on sale where as discussions are also being conducted to put residential units on sale for investors. "We want to be on target by that date," Mr Russell said "In the summertime things slow down here, so we haven’t really been pushing new launches. Those are very much on track now. You’ll start to see some promotions."

The beginning phase which will consist of 12 sub divisions will be able to accommodate 27,000 people and will constitute an area of 2.2 sq km and will provide access to all leisure facilities.