By Staff writer
Chairman Ali Rashid Lootah reportedly rules out dropping mega project from schedule
Nakheel chairman Ali Rashid Lootah has reportedly pledged that the Palm Jebel Ali project will be built – but not in the short term.
In an interview with Arabic daily Al Ittihad, Lootah ruled out dropping the project and said the company was committed to completing all of its announced projects on a schedule that responds to market needs.
He said that as part of a restructuring of the company’s financial and commercial debt, the board has decided to categorise the company’s projects as those to be implemented in the short term, such as Al Furjan, Jumeirah Park, Jumeirah Village, Jumeirah Heights, Jumeirah Island and Badra, and those to be implemented in the long term such as Jebel Ali Palm.
Since the restructuring, he said Nakheel has been reviewing projects prior to their launch to ensure compatibility with demand in the property market.
He said the company has launched 12 development projects in Dubai following the financial and commercial debt restructuring process in August 2011.
Lootah earlier this month denied he had been appointed to clear up the financial mess left by his predecessors during the financial crisis and is aiming to restart work on its major manmade island master developments in a bid to "put everything back together.”
“We’ve had a tough few years but we have recovered,” Lootah said in an interview with The Sunday Times newspaper. “This is new Dubai and new Nakheel... We have lots under construction and more to be built.”
The report said Nakheel plans to deliver 4,860 homes worth a total of $3.6bn over the next three years, at developments such as Azure Residences, Club Vista Mare and The Pointe.
In October, Nakheel said its nine-month net profit jumped 58 percent year-on-year as the company continued to benefit from the recovery in the emirate's property market.
The firm, which was taken over by the government as part of its $16bn restructuring plan completed in 2011, made a net profit of AED1.77bn ($481.9m) in the nine months to September 30, versus AED1.12bn in the corresponding period of 2012.
Dubai real estate prices slumped by more than 50 percent from their 2008 peak in the aftermath of the emirate's property bubble bursting, but have been advancing in recent months as investor confidence in the sector returns.
* Nakheel no longer responds to media enquiries from Arabian Business, nor does it grant Arabian Business access to any of its media events or announcements.
Sorry to be off topic but why is there no 'join the discussion' space for cyber crime (Cassim) case? Nothing to discuss? No need to reply here if it is too sensitive for AB. I will understand
This is a business that failed to complete projects, continues to fail to complete projects and still uses clients money on totally delayed projects to finance its ambitious growth plans when many still have properties that have been completed but they are unable to move into the premises. This company is not reputable. Only buy completed properties in Dubai to ensure that you get what you expected.