Eighteen months ago, Ross Ensor at Leo A Daly described the business climate in Abu Dhabi as “a bit like the California Gold Rush.” Backed by oil prices at relatively high levels, the capital of the United Arab Emirates had embarked on an ambitious program of new developments, a rare bright spot as the rest of the world dealt with a crushing recession.

Today, however, with the global economy still weak and political unrest sweeping the Arab world, the mood here is subdued. “What a difference a year makes,” says Ensor, a vice president with the Nebraska-based design firm, which has an office in the Persian Gulf emirate. “Things have certainly slowed down.” . . .

But the emirate is now reprioritizing its spending, and moves to scale back high-profile projects have forced design firms operating here to cope with construction setbacks and even delays in payment. “Times are tough,” says Fares Kekhia, managing director of the multi-disciplinary design firm Otak, which opened its Abu Dhabi office in 2006 and is working on several master plans. “We’ve been awarded a number of projects whose contracts have not been executed, or which have been canceled. Most of our projects face delay.” In turn, the firm has been forced to cut its headcount.

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