By Daniel Shane
“People are not going to give me money if they’re not serious,” says Dubai developer boss
The chairman of Dubai’s Nakheel is claiming he expects more work on its manmade The World project to start next year, with investors even handing over post-dated cheques to the indebted developer.
Ali Rashid Lootah told reporters on Wednesday that Nakheel, which had to be taken over by the Dubai government after it crumbled under a mountain of debt, had completed AED924m of settlements with investors in The World over the last six months.
Out of the 300 or so islands located just off the emirate’s coast, only two have been developed on since the project was launched in 2008. Work ground to a halt due to a combination of the effects of Dubai’s financial crisis and logistical disputes over transporting construction materials to the islands.
“People have come forward and given us post-dated cheques. They want to continue on the project and we are helping them. We are giving them flexibility on payment terms because we want to help kickstart this project,” Lootah was quoted as saying.
He added that many sub-developers were in the process of starting engineering work on the islands, while Nakheel was fielding more enquiries from new investors. “People are not going to give me money, or give me cheques if they are not serious,” Lootah said.
The company said that Nakheel had negotiated trade creditor claims against the company from AED6.5bn to AED1.5bn. “We sit across the table, reach a settlement, they’re happy, we shake hands and we pay them their money,” he added.
Lootah said that Nakheel currently had no plans to revisit stalled projects including Palm Jebel Ali, Palm Deira or Dubai Waterfront.
In its most recent financial quarter, said it made a first-half net profit of AED1.2bn ($327m), up 57 percent on the same period last year.
Revenues for the first half of the year stood at AED4.23bn, up 36 percent.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Does anyone know if they will except two for one coupons from the Entertainer Guide?
Credibility and reliability is missing among many other things, thus its marketable rank is dubious!
Absolutely not, they do however issue 4 for 1 coupons. That his they negotiated their trade creditors down to 1.5 bn from 6.5bn.
6.5 billion to 1.5 billion ? Wow. When you are in a position to tell your creditors, accept 20% - or get nothing , and when poor creditors see no other option but to cut their losses and accept such unfair settlements, one can not and should not gloat about it. To say that creditors who accepted such unfair settlements because they had no other choice were "happy" is a cruel joke indeed. No matter what you do, Nakheel's history will be a blot on Dubai's reputation. As for people handing in post dated cheques - lets not forget the old American adage " a sucker is born every minute "
with all respect: Nakheel previous projects have shown the bad quality.
Look at Discovery Gardens: Go there and have a drive: you will find most U turns blocked, too many changes there, these changes were not in proposal when buyers start buying there in 2006-2008.
Now Discovery is full of traffic and all of it has only 1 exist like a funnel.
2 weeks ago they had a problem with a water pipe and the area became like Movies sense where you can see 1000 cars waiting to leave in a single lane.
This tells a lot about Nakheel
they dont care about you after you buy.
I don't recommend any of Nakheel projects at all
I am a data analyst and I am not saying anything personally, I am saying it based on facts on old Nakheel projects, and Discovery Gardens is just an example.
Unfortunately the whole Discovery Gardens area has traffic problems, which almost felt like they were designed to inconvenience its residents, so they get fed up and are forced to move out:
1) Uturns blocked merely to force driver to drive 1-3 km more
2) Traffic lights not timed
3) One set of traffic lights without any cross traffic or pedestrians crossing, existing only to make people stop
4) Loads of harsh speedbumps
5) No exit towards Emirates road, and the only dirt path blocked off.
The contrast with areas like Mirdiff and Barsha were astounding.
I don't understand why there are still People investing with them!!! I wouldn't give not even 1 Dirham. And a post dated check? Who is so stupid doing this after the history Nakheel has? If you want to give you Money away, there are better places to do so. Help children around the globe with this Money and don't toss it down the throat of These People!!!!
The next investor to lend them money is an idiot and deserves to lose his money. Same goes to buyers.