Dubai’s most controversial real estate firm is showing signs of a turnaround
It’s fair to say that Nakheel has come in for a bit of stick on this website. Most of it justified, I might add. From draining residents’ swimming pools, to locking residents out of access to beaches, to spectacular white elephants like The World, the Dubai developer’s reputation since the 2008 financial crisis has been toxic waste.
This year, however, the firm that built the Palm Jumeirah has begun to show signs of a turnaround. In its most recent financial quarter, revenues jumped 36 percent to AED4.23bn, while Nakheel handed over 1,400 properties to long-suffering investors. The company claimed that these results were a sign that buyers were willing to trust Nakheel again.
Nakheel has also resettled some of its old dues. In June this year, the company came to settlement agreements worth AED185m with two more land purchasers on The World, meaning that projects on that development may finally be able to move forward. Nakheel has also made serious inroads in repaying its trade creditors.
The icing on the cake is that the firm’s outspoken chairman Ali Rashid Lootah is also putting his foot in his mouth far less frequently than he used to. This last point will be to the relief of Nakheel’s investors, although not maybe not for us journalists covering the company.