Nakheel unveils cruise line in push to aid revenues

Tuesday, 17 January 2012 9:15 AM

Nakheel launches its 'Cruise with Nakheel' boats on Jan 16, 2012

Nakheel, Dubai’s biggest developer by assets, plans to offset flagging real estate revenues by launching a series of tourist packages to help monetize its offshore World and Palm Jumeirah islands.

[Click here to experience Nakheel's Palm cruise]

The state-owned company on Monday launched a cruise ship service to ferry tourists around the Palm Jumeirah and said it plans to offer further cruise lines and diving packages in the future.

“Any project that you want to do should be done looking for revenue,” said Saeed Harib, CEO of Nakheel’s leisure arm. “With Nakheel, most projects are in a prime location for the tourists – inside the Palm – and a lot of people will be interested to come and sail around the Palm on a cruising boat.

“It’s good revenue for Nakheel and a good destination for tourists in the UAE,” he said.

The firm’s ‘Cruise with Nakheel’ service will offer trips for groups of up to 12, 15 and 30 people around the Palm Jumeirah from today. Prices for the service, which is already being marketed across Dubai’s luxury hotels, start from AED1,000 per boat, depending on the size of the vessel.

Tourists on the one-hour cruise can choose from one of three boats including an 80-ft double-decker Houseboat or a smaller motor boat (38-ft or 52-ft).

The service will operate daily from 9-5pm and lasts one hour. Nakheel expects to operate between two and three trips a day,

The news comes days after Nakheel unveiled details of a retail and residential project on Palm Jumeirah, its first real estate project since the collapse of Dubai’s property market in late-2008.

[Click here for images of the planned development]

The Pointe at Palm Jumeirah will include shops, computer-controlled fountains, a marina and a public walk on the tip of the palm-shaped island, Nakheel said.

The developer is in talks with banks to raise at least AED300m ($82m) for the project, which will be operated by the company when it’s completed.

Nakheel’s cruise service will use boats already owned by the company meaning the tourist package will require minimal start-up costs, said Harib.

Future packages are expected to include tours of the World islands, night cruises and diving packages. The service could also be launched in areas outside of Nakheel’s developments, said Harib.

“We are concentrating in the Palm and next to the World but of course we have a neighbourhood which is linked close to us such as the Lagoon in front of the Mina Seyahi, Dubai Marina and we are looking at diving in the future,” he said.

Nakheel was one of the biggest casualties of Dubai’s property crash after overstretching itself with ambitious projects such as the offshore World development. The company wrote down the value of its real estate by AED78.6bn after the credit crisis and received an $8.6bn bailout from Dubai’s government.

The company has seen work on its multi-island World project slow to a virtual standstill in the wake of the downturn, as owners struggled to reduce their exposure to the Dubai property collapse.

Nakheel has hinted it may look to reposition the stalled development as a tourist attraction through renting out the islands for private events and now offering cruises around the project.

“Tourists want to see the World and the World is the next destination. If there is any development on the World or not, people will still like to go there,” said Harib. “There is a good potential in terms it becoming a tourist destination.”

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Posted by: solly Wednesday, 18 January 2012 4:19 PM[UAE] - UAE

Nice one Gordon...

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Posted by: MBG Wednesday, 18 January 2012 12:05 PM[UAE] - USA

I want to share this experience with Emaar lately. I rented a unit in 8 walk blvrd, Burj Downtown two months back. The owner paid me to get a car pass...going to Emaar Yansoon 9 they said the owner has to update his details with Dewa as still in Emaar name plus to clear some balance with Dewa also. Althu this can be sorted out between two of them, rather, they took me hostage to press the owner for doing so. Anyway, my agent followed up with owner and he cleared all his liabilities wrt my unit. After that, I approached Emaar for my original request and the big surprise when I was informed that the owner has another unit which he has to do the same before giving me a car pass !!! I have become liable for all the owner investment with Emaar...I can't imagine something un-ethical more than this.

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Posted by: Geoffrey Wednesday, 18 January 2012 12:02 PM[UAE] - Dubai

Chinese Pagoda house in Satwa (since demolished) and it always drew a crowd??

It's a) a private residence, built and developed and lived in by the owner so not sure what crowd it ever drew, and b) is still in existence with the same family living there.

Why on earth would you want a China town esque area in prime area of town? When the dragonmart does a great job and is conveniant for aa large proportion of its regular users who live nearby in International City?

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Posted by: IGK Tuesday, 17 January 2012 5:08 PM[UAE] - UAE

Nakheel should build low cost property on The Palm Jebel Ali - Dubai Waterfront - The World. Let them compete on comparison with the luxury developments of the world & everyone will turn their heads again at Nakheel & ultimately at Dubai.

Posted by: charles Wednesday, 18 January 2012 8:47 AM[UAE] - uae

@gordon
ha ha ha, very clever

Posted by: gordon Tuesday, 17 January 2012 6:54 PM[UAE] - dubai

they did build low cost property on the Palm Jumeriah, the problem was they sold them for extornitate prices.

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Posted by: A Nakheel victim on the Palm Shoreline Apartments Tuesday, 17 January 2012 5:06 PM[UAE] - Dubai

I despair at hearing all these Nakheel moving forward messages from them when they are destroying the quality of life for existing residents, especially on the Palm Jumeirah Shoreline Apartments. People around the world will particularly avoid Nakheel services in general when they read about this all over the Internet.

Nakheel have:
1) vastly increased Palm "service" charges
2) buildings badly maintained
3) attempted to sieze common areas from residents (against original purchase agreements and against RERA)
4) Dh200 charge for visitors to accompany you to your beach bar
5) Dh200 for childminder to take your kids to playground
6) quickly calling Dubai Police on residents

With all this I cannot imagine how anyone would ever trust Nakheel, under its current management, with cruises or any new service or a new property.

Posted by: Benny Wednesday, 18 January 2012 8:49 AM[UAE] - UAE

I am avoiding anything proposed by any Dubai developer due to their unfair treatment, lack of respect, unethical behaviour towards investors and residents.

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