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Mon 28 Jun 2010 10:33 AM

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Nakheel to pay Arabtec 40% in 2 weeks

Arabtec CEO says he expects the additional 60% to be paid in the next three months.

Nakheel to pay Arabtec 40% in 2 weeks

Gulf construction giant Arabtec believes that it will be paid the first 40 percent tranche of money owed to it by Nakheel within in the next two weeks.

“I called the CEO of Nakheel this morning…and he assured me that the money would be coming this week or next week,” Arabtec CEO Riad Kamal said during the Arabian Business conference in Dubai on Monday.

“I hope they will deliver on their promise – it would be good for Arabtec, but also for Dubai in terms of local confidence. I don’t doubt they will deliver on that promise.”

Developer Nakheel, part of the Dubai World group of companies, has offered its trade creditors full repayment, with 40 percent in cash, and 60 percent via sukuk, which has a ten percent annual return.

Kamal also said that he expected the additional 60 percent to be paid in the next three months.

“Around 65 percent of Nakheel’s creditors have agreed to their proposal, but 95 percent need to approve the deal. I expect that over the next three months, they will be chasing the rest.”

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