By Daniel Shane
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.
The words trust and Nakheel in the same sentence could lead to indigestion. They are mutually exclusive and all Nakheel has achieved is to pull the wool over the eyes of callow scribes such as this one.
I do not think a nominal increase in revenue amounts to "a change of culture" at Nakheel. Corporate cultures do not change without a total rehash of management players, structure, declared philosophy change etc. Awful things mentioned in this article and those that are not mentioned, like scaling down of projects and its common facilities dramatically in Discovery Gardens, become strategies and addict management conscience. Revenue increase is marginal improvement as a result of backlogged sales of previous year.
what about :
1) dubai waterfront ??
2) The World islands?
3) palm deira (hopefully they scratch that off!)
they cant redeem themselves if they dont fix the above..
Agree with Anwar. Go to the Nakheel Sales office in Al Sufouh and ask for info from their system. After having bought 2 properties, our chairman's name could not be found in their database. Our MD's services bill was still coming out in the name of the old owner from whom we bought a property 2 years back!
At teh same time go to Emaar Sales Centre in Downtown and ask for info. You will see a 'World' of difference in efficiency, pro-activeness of course with a bit of well deserved arrogance!
The word "redeem" has a connotation of making up in MORAL terms not in a better financial performance.
Unless Nakheel , says sorry and pays all its creditors IN FULL it can never redeem itself.