Nakheel plans first new Palm Island project since Dubai crash
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Wed January 11, 2012 12:07 pm
china wholesale market

UAE. Nakheel, Dubai’s biggest developer, plans to start its first new project on the Palm Jumeriah artificial island since the company received a government bailout in 2009.

Nakheel will build shops, computer-controlled fountains and a public walk on the tip of the palm-shaped island, Chairman Ali Rashed Lootah said at a press conference today. Nakheel is in talks with banks to raise at least AED300 million (US$82 million) for the project, which will be operated by the company when it’s completed.

“The retail sector is strategic for Nakheel,” Lootah said, adding the company is looking to increase its sources of recurring income.

Nakheel wrote down the value of its real estate by AED78.6 billion after the credit crisis caused the emirate’s speculation-driven property market to collapse. The company received an $8.6 billion bailout from Dubai’s government as part of a US$10.5 billion debt restructuring that included issuing an Islamic bond, or sukuk, to repay trade creditors.

Nakheel also plans to issue an Islamic bond, or sukuk, before June to settle outstanding claims by contractors, Lootah said. The value won’t exceed 1 billion dirhams, he said.

Developers in the United Arab Emirates, which includes Dubai and Abu Dhabi, canceled or postponed more than US$500 billion worth of projects since the property market crashed. Developments on hold include Nakheel’s Palm Jebel Ali and Palm Deira islands as well as most of its world map-shaped island chain.

The company expects the new project to be completed in about 18 months, Lootah said today. Nakheel hasn’t decided whether to raise funds through loans or bonds for the development, he said.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: February 1, 2015
UAE. Latest report highlights need for companies to seize merger and acquisition opportunities created by lower oil prices.
date:Posted: February 1, 2015
INTERNATIONAL. January proved to be another difficult month for commodities as the trend of falling prices amid rising supply resulted in a 7th consecutive monthly fall for the Bloomberg Commodity index.
date:Posted: January 31, 2015
QATAR. In the end, monetary policy can be powerful in the short-term but is unlikely to change the long-term predicament of the Euro Area. The ECB may succeed in preventing prolonged deflation from taking hold, but this is a not a sufficient condition for sustainable growth.
dhgate