ISTANBUL, Dec. 2 (Xinhua) -- The crisis in Dubai may hurt Turkish companies in construction sector amid possible delays in payments, according to Daily News here Wednesday.

    Bulent Erdogan, chief executive of Turkish construction giant Nurol, said three of the company's ongoing projects had stopped six months ago due to problems with payments.

    He added that "We also have six more ongoing projects in Abu Dhabi, we have seen no problem there."

    Emin Sazak, chief of the Turkish-Qatari Business Council of the Foreign Economic Relations Board, warned that companies in construction sector may have trouble getting their money in time.

    "If (Dubai World) says it will postpone payments to creditors, that would also mean delays in payments to constructors," he said, adding that only a few Turkish companies had planned to invest in Dubai, but pulled back due to the global credit crisis.

    "Nearly all Turkish companies active in Dubai are constructors," he said. "Those who have ongoing projects would receive their money delayed. Those who did not start the projects will probably start late."

    In a note to investors Tuesday, Timothy Ash, an emerging-markets economist at the Royal Bank of Scotland, said Turkish banks are not "particularly exposed to the 26 billion U.S. dollars of Dubai World liabilities."

    However, he said "Turkish construction companies have been active in the region, so the feedback may well be through delayed or slow payment for construction contracts and lower worker remittances."

    According to Ash, throughout the UAE, around half of the construction projects underway have been put on hold.

    "There may well be concern... that less money flowing in from the Gulf could impact the Turkish treasury's financing plans for 2010," he added.

Special Report:  Global Financial Crisis