Dubai's Nakheel too aggressive, says Emaar boss

Posted by: Ole Torero Tuesday, 19 February 2013 1:09 PM[UAE] - Spain

There is something wrong in the atmosphere lately! maybe the bull want to charge and get everybody on his way flying. in any case it sounds like a too dangerous game

Posted by: JTH Monday, 18 February 2013 10:09 AM[UAE] - UK

Mr Al Abbar, you were all in the same boat. Emaar was not at all better.

Posted by: jon Monday, 18 February 2013 10:06 AM[UAE] - salt mines

@RBH, they were but they weren't with huge mega projects like Nakheel. Dubai has a big debt problem which it needs to tackle before going any further because it risks being another Greece. International banks once the backbone of projects seem to be unsure of Dubai now a days, for example the recent rejection of debt repayment where creditors were offered $.18 on the dollar. I read another article here today where it mentioned that their planning $45 bn investment in Pakistan. Why not pay off the bills of the country and invest more at home then abroad? The only way out of this mess is going to be taxes, proberly not sales tax but maybe expat tax. Its only logical

Posted by: Reny Thursday, 21 February 2013 3:27 PM[UAE] - South Africa

We are already paying taxes - its just a different name called "Salik" :)

Posted by: realiste Tuesday, 19 February 2013 10:15 AM[UAE] - uae

yes indeed Vicky.
Reality would come home to roost very quickly then.

Wouldnt have to read "if you dont like it leave" anymore from some people, would we!

Posted by: vicky Monday, 18 February 2013 11:31 AM[UAE] - UAE

Many are in UAE cause of tax free country, imagine people migrating if direct tax is implemented...

Posted by: Red Snappa Sunday, 17 February 2013 2:19 PM[UAE] - Ireland

Brushing off Dubai's ongoing indebtedness as a non-issue, is all very well, but the debt restructures just keep coming. Amlak, 48% owned by Emaar Properties, as I recall from only recent press is currently in talks with its creditors to reschedule AED 7 billion (US$ 1.9 billion)! And there are still other state-linked firms in similar discussions for even bigger sums.

I feel sure that every international bank, contractor etc is jumping up and down rubbing their hands with glee at the possibility of getting their bills paid and money back in 15 to 20 years.

Talking of Dubai's asset bank, I certainly agree with MA about Nakheel, didn't they offer sections of the Gulf seabed as collateral behind their Trade Creditors 60% repayment bond.

Time an indebted entity handed over a tangible asset in lieu of the money, to prove feasibility.

No matter how credible the disclaimant, a new generation of mega-projects in a high debt repayment era, makes the international financial community uneasy

Posted by: RBH Sunday, 17 February 2013 12:51 PM[UAE] - Lebanon

Haven't Emaar suffered too?! You guys were aggressive and competing with Nakheel as well to be the no. 1 properties provider.

Posted by: Tarun Monday, 18 February 2013 4:19 PM[UAE] - UAE

If we consider the value of projects completed ,number of residential or commercial units, number of communities developed and run in Dubai value of projects to be completed (e.g. Palm Jebel Ali & Deira, International City phase 3 etc.), Nakheel is bigger in terms of Dubai market. Emaar is bigger than Nakheel if we add up its assets in the UAE and other countries.

Posted by: Guerrdo Paul Monday, 18 February 2013 10:02 AM[UAE] - UAE

Emaar was always, and still is, the no. 1 developer. Nakheel never was, and never will be. Is there a doubt? Emaar has strong processes and work flow procedures, put in place during 2003-2005. It can run on auto pilot. Nakheel cannot.