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

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: November 26, 2014
UAE. "In the final months of 2014, we expect further increases in occupancy rates, with the pleasant weather attracting more tourists, alongside the seasonal increase in events and conferences."
date:Posted: November 25, 2014
INTERNATIONAL. In the end, it is unlikely that the territorial Islamic State can survive. The truth is that Turkey, Iran and Saudi Arabia are all waiting for the U.S. to solve the problem with air power and a few ground forces. These actions will not destroy IS, but they will break the group's territorial coherence.
date:Posted: November 25, 2014
BAHRAIN. The "increasingly deregulated and competitive economic environment is facilitating rapid growth in business development within the private sector."
UAE. An advisory body to the UAE government has suggested that the central bank review the country's currency peg to the U.S. dollar, but local bankers said any change to the peg remained very unlikely for the foreseeable future.
dhgate