More than 2,000 workers have gone on strike for a week on a 拢3bn Bahraini tourist development being built by a team including Bovis Lend Lease and Atkins.

About 2,450 of the 7,000 workers on the Durrat Al Bahrain scheme went on strike last week, days after the Indian embassy in Bahrain demanded a minimum monthly wage of 100 Bahraini dinars (拢136) for Indian employees in the country. The Gulf construction industry relies heavily on migrant workers from India and Bangladesh.

Ian Cordingley, Atkins鈥 senior resident engineer, said: 鈥淚f half your labour goes on strike, you are bound to have delays.鈥 However, he added that the project鈥檚 first-phase deadline for October was still on target.

Michael Nops, Bovis Lend Lease鈥檚 project director, said: 鈥淚t was a matter between the contractors and their workforce, but it seems like the issue has been resolved and wages have been increased.鈥

Nops said the delay to the project would be 鈥渋nsignificant鈥. He said: 鈥淲hile people were on strike, others continued work. We鈥檙e going to finish the first phase this year.鈥

About 2,000 workers from local contractor GPZ and 450 from Bokhowa Group refused to work unless their pay was raised. Nops said they locked themselves into their labour camp until their demands were met.

The action is the latest in a number of pay rows to hit British contractors in the Gulf. Four months ago workers in Dubai received a 20% pay rise after taking industrial action.

The first phase of the Durrat Al Bahrain, which is the Gulf state鈥檚 biggest tourist development consists of six man-made islands, each housing 172 villas.

When it is complete, the site will house 60,000 permanent residents and will receive an estimated 4,500 visitors a day. It will include an 18-hole golf course, a five-star hotel, a marina big enough for 400 boats, a market and a ferry terminal. The islands are connected to the mainland via five 鈥減etal islands鈥, linked up with a circular bridge.

Bovis Lend Lease is project and construction manager on the 20km2 site, and Atkins is the consultant engineer.

Scott Wilson Architects has just been appointed to work on the golf course.

Work started in October 2004.