Nakheel merges with DMCC property arm

Nakheel, the state-owned developer of Dubai's palm-tree shaped man-made islands, has been merged with the property wing of Dubai Multi Commodities Centre (DMCC), a newspaper said on Monday.

"DMCC's property-related operations have been integrated with Nakheel to better accomodate current market conditions and optimise resources and expertise," a DMCC spokesman told The National.

Both companies are owned by Dubai World, which is in turn controlled by the Dubai government.

Nakheel said last month it received funds from Dubai's government, some of which will be used to pay contractors as it looks to complete projects.

Dubai sold $10bn of bonds to the UAE Central Bank earlier this year to raise funds to support state-linked companies suffering from the financial crisis, and plans to issue another $10bn in bonds later this year.

The emirate's once-booming real estate sector is suffering a sharp slowdown as prices have collapsed, developers slow or cancel projects and jobs are slashed.

HSBC said in a report on Sunday prices were stabilising but values could fall further.

Slumping demand would drag residential real estate prices in Dubai down between 50 and 60 percent this year from their 2008 peaks, EFG-Hermes said last month. (Reuters)

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