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In early 2020, [[Mohammed Ibrahim Al Shaibani]] took over as chairman from [[Ali Rashid Lootah]].<ref>{{cite news| title=Mohammed Ibrahim Al Shaibani takes over as Nakheel Chairman | url=https://gulfnews.com/business/mohammed-ibrahim-al-shaibani-takes-over-as-nakheel-chairman-1.1579587624589 | date=21 January 2020 | newspaper=[[Gulf News]] | language=en}}</ref><ref>{{cite news| title=Mohammed Ibrahim Al Shaibani takes over as Nakheel Chairman | url=https://www.businesstimes.com.sg/real-estate/chairman%C2%A0of-dubai-state-owned-developer-nakheel-to-leave | date=21 January 2020 | newspaper=[[Business Times (Singapore)|The Business Times]] | location=Singapore | language=en}}</ref> Later in the same year, Naaman Atallah was appointed as the company's [[chief executive officer]] (CEO).<ref>{{cite news| title=Dubai developer Nakheel appoints new CEO | url=https://arab.news/69gxx | first=Shane | last=McGinley | date=23 November 2020 | access-date=14 August 2021 | newspaper=[[Arab News]] |language=en}}</ref> In May 2020 it was reported some employee's salaries were cut between 30 and 50% for senior staff due to the [[COVID-19 pandemic]].<ref>{{cite news| title=Covid-19: Nakheel cuts some salaries by as much as 50% | url=https://www.arabianbusiness.com/politics-economics/446245-covid-19-nakheel-said-to-cut-some-salaries-by-as-much-as-50 | date=6 May 2020 | access-date=14 August 2021 | magazine=[[Arabian Business]] |language=en}}</ref>
In early 2020, [[Mohammed Ibrahim Al Shaibani]] took over as chairman from [[Ali Rashid Lootah]].<ref>{{cite news| title=Mohammed Ibrahim Al Shaibani takes over as Nakheel Chairman | url=https://gulfnews.com/business/mohammed-ibrahim-al-shaibani-takes-over-as-nakheel-chairman-1.1579587624589 | date=21 January 2020 | newspaper=[[Gulf News]] | language=en}}</ref><ref>{{cite news| title=Mohammed Ibrahim Al Shaibani takes over as Nakheel Chairman | url=https://www.businesstimes.com.sg/real-estate/chairman%C2%A0of-dubai-state-owned-developer-nakheel-to-leave | date=21 January 2020 | newspaper=[[Business Times (Singapore)|The Business Times]] | location=Singapore | language=en}}</ref> Later in the same year, Naaman Atallah was appointed as the company's [[chief executive officer]] (CEO).<ref>{{cite news| title=Dubai developer Nakheel appoints new CEO | url=https://arab.news/69gxx | first=Shane | last=McGinley | date=23 November 2020 | access-date=14 August 2021 | newspaper=[[Arab News]] |language=en}}</ref> In May 2020 it was reported some employee's salaries were cut between 30 and 50% for senior staff due to the [[COVID-19 pandemic]].<ref>{{cite news| title=Covid-19: Nakheel cuts some salaries by as much as 50% | url=https://www.arabianbusiness.com/politics-economics/446245-covid-19-nakheel-said-to-cut-some-salaries-by-as-much-as-50 | date=6 May 2020 | access-date=14 August 2021 | magazine=[[Arabian Business]] |language=en}}</ref>


In September 2022, Nakheel rebranded.<ref name="AB-25Sep2022">{{cite news |title=Nakheel unveils massive rebranding, major Palm Jebal Ali updates expected |url=https://www.arabianbusiness.com/industries/real-estate/nakheel-unveils-massive-rebranding-major-palm-jebal-ali-updates-expected |access-date=10 October 2022 |work=Arabian Business |date=25 September 2022}}</ref>
In September 2022, Nakheel rebranded.<ref name="AB-25Sep2022">{{cite news |title=Nakheel unveils massive rebranding, major Palm Jebal Ali updates expected |url=https://www.arabianbusiness.com/industries/real-estate/nakheel-unveils-massive-rebranding-major-palm-jebal-ali-updates-expected |access-date=10 October 2022 |work=Arabian Business |date=25 September 2022}}</ref> It also began a series of announcements regarding frozen projects, having restarted Palm Deira (now rebranded Dubai Islands) in August 2022.<ref name="AB-25Sep2022"/> After a $4.6 billion debt restructuring deal,<ref name="Kerr-27Sep2022">{{cite news |last1=Kerr |first1=Simeon |title=Dubai developer Nakheel nears $4.6bn debt restructuring to fund expansion |url=https://www.ft.com/content/dd52c706-6d99-47a8-9d04-0b5e1d6cb6f9 |access-date=10 October 2022 |work=Financial Times |date=27 September 2022}}</ref> it was expected to relaunch Palm Jebel Ali, stalled since 2008,<ref name="AB-28Sep2022">{{cite news |title=Nakheel to relaunch and rebrand Palm Jebel Ali |url=https://www.arabianbusiness.com/money/wealth/money-wealth-real-estate/nakheel-to-relaunch-and-rebrand-palm-jebel-ali |access-date=10 October 2022 |work=Arabian Business |date=28 September 2022}}</ref> building 1,700 villas and 6,000 apartments on the man-made islands,<ref name="Kerr-27Sep2022"/> having previously contacted existing investors offering to buy back their contracts for plots and properties.<ref name="Kerr-21Aug2022">{{cite news |last1=Kerr |first1=Simeon |title=Dubai looks to restart mothballed luxury developments for wave of wealthy incomers |url=https://www.ft.com/content/55df051a-45d7-4bff-bc2d-74d27388b1e3 |access-date=10 October 2022 |work=Financial Times |date=21 August 2022}}</ref>


⚫
[[File:Palm Jumeirah Model on 12 January 2008 Pict 1.jpg|thumb|A model of [[Palm Jumeirah]] at the Nakheel Sales Centre in 2008]]
==Portfolio==
==Portfolio==

⚫
[[File:Palm Jumeirah Model on 12 January 2008 Pict 1.jpg|thumb|A model of [[Palm Jumeirah]] at the Nakheel Sales Centre in 2008]]
Nakheel Properties has a portfolio of projects in Dubai across the residential, retail, hospitality and leisure sectors. Property development projects include:
Nakheel Properties has a portfolio of projects in Dubai across the residential, retail, hospitality and leisure sectors. Property development projects include:


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Retail project developments include [[Ibn Battuta Mall]], Dragon Mart 1 and 2, Golden Mile Galleria, Nakheel Mall,<ref>{{cite web| url=https://www.mediaoffice.ae/en/news/2018/3/AED1-2-billion-Nakheel-Mall-85-per-cent-complete- | title=AED1.2 billion Nakheel Mall 85 per cent complete | date=5 March 2018 | location=UAE | publisher=[[Government of Dubai]] | work=Media Office | accessdate=15 August 2021 }}</ref> The Pointe, Deira Mall, Deira Islands Night Souk, Warsan Souk, Al Khail Avenue, The Circle Mall and Nad Al Sheba Mall, as well as extensions to Dragon Mart (renamed Dragon City) and Ibn Battuta Mall.
Retail project developments include [[Ibn Battuta Mall]], Dragon Mart 1 and 2, Golden Mile Galleria, Nakheel Mall,<ref>{{cite web| url=https://www.mediaoffice.ae/en/news/2018/3/AED1-2-billion-Nakheel-Mall-85-per-cent-complete- | title=AED1.2 billion Nakheel Mall 85 per cent complete | date=5 March 2018 | location=UAE | publisher=[[Government of Dubai]] | work=Media Office | accessdate=15 August 2021 }}</ref> The Pointe, Deira Mall, Deira Islands Night Souk, Warsan Souk, Al Khail Avenue, The Circle Mall and Nad Al Sheba Mall, as well as extensions to Dragon Mart (renamed Dragon City) and Ibn Battuta Mall.

In September 2022, Nakheel began a series of announcements regarding frozen projects, having restarted Palm Deira (now rebranded Dubai Islands) in August 2022.<ref name="AB-25Sep2022"/> after a $4.6 billion debt restructuring deal,<ref name="Kerr-27Sep2022">{{cite news |last1=Kerr |first1=Simeon |title=Dubai developer Nakheel nears $4.6bn debt restructuring to fund expansion |url=https://www.ft.com/content/dd52c706-6d99-47a8-9d04-0b5e1d6cb6f9 |access-date=10 October 2022 |work=Financial Times |date=27 September 2022}}</ref> It was expected to relaunch Palm Jebel Ali, stalled since 2008,<ref name="AB-28Sep2022">{{cite news |title=Nakheel to relaunch and rebrand Palm Jebel Ali |url=https://www.arabianbusiness.com/money/wealth/money-wealth-real-estate/nakheel-to-relaunch-and-rebrand-palm-jebel-ali |access-date=10 October 2022 |work=Arabian Business |date=28 September 2022}}</ref> building 1,700 villas and 6,000 apartments on the man-made islands,<ref name="Kerr-27Sep2022"/> having previously contacted existing investors offering to buy back their contracts for plots and properties.<ref name="Kerr-21Aug2022">{{cite news |last1=Kerr |first1=Simeon |title=Dubai looks to restart mothballed luxury developments for wave of wealthy incomers |url=https://www.ft.com/content/55df051a-45d7-4bff-bc2d-74d27388b1e3 |access-date=10 October 2022 |work=Financial Times |date=21 August 2022}}</ref>


Nakheel has also developed properties outside Dubai, in [[Montenegro]] for example.<ref>{{cite news| url=https://gulfbusiness.com/dubais-nakheel-offers-montenegro-citizenship-on-waterfront-residences-at-porto-montenegro/ | title=Dubai’s Nakheel offers Montenegro citizenship on waterfront residences at Porto Montenegro | first=Zainab | last=Mansoor | date=21 September 2021 | magazine=[[Gulf Business]] }}</ref>
Nakheel has also developed properties outside Dubai, in [[Montenegro]] for example.<ref>{{cite news| url=https://gulfbusiness.com/dubais-nakheel-offers-montenegro-citizenship-on-waterfront-residences-at-porto-montenegro/ | title=Dubai’s Nakheel offers Montenegro citizenship on waterfront residences at Porto Montenegro | first=Zainab | last=Mansoor | date=21 September 2021 | magazine=[[Gulf Business]] }}</ref>

Revision as of 08:11, 10 October 2022

Nakheel Properties
Company typeGovernment owned
IndustryReal estate
Founded2003; 21 years ago (2003)
Headquarters
Dubai
,
United Arab Emirates
Key people
Naaman Atallah
ServicesProperty development
RevenueIncrease AED 5.67 billion[1] (2017)
OwnerGovernment of Dubai
Number of employees
1,500[2]
ParentDubai World
SubsidiariesJumeirah Village, Nakheel Marinas, International City, Canal District, Jumeirah Islands, Warsan, Dragon Mart Complex, The Gardens, Nakheel Asset Management, Palm Deira, Azure Residences, Veneto residence, Badrah, Golden Mile
Websitewww.nakheel.com

Nakheel Properties (Template:Lang-ar) is a property developer based in Dubai, United Arab Emirates.[3] The formal name of the company is Nakheel PJSC (private joint stock company) and it was a subsidiary of Dubai World and a private state-owned enterprise.[4][2] Nakheel was seen as key to resolving Dubai's debt crisis in 2009–2010.[5]

The company has been reported to be the second-largest property developer in Dubai after Emaar Properties.[6]

History

The company was founded in 2003,[4] and, as a subsidiary of state-owned Dubai World,[7] prospered until the financial crisis of 2007–2010 started a decline in Dubai's real estate market, putting Dubai World at risk of bankruptcy in November 2009.[7] After write-downs of real estate values and lower sales, Nakheel had made a loss of 13.4bn dirham ($3.65bn) in the first half of 2009,[8] and, despite a May cash bail-out,[9] sought to delay December repayment of a $3.5 billion bond that had been downgraded to junk status because Dubai's government had refused to bail out its parent company,[8][10] which had requested a stay on debt payments.[11] However, on 14 December 2009, neighbouring Abu Dhabi invested $10bn in Dubai, warding off Nakheel's debt default,[12] and in March 2010, the government of Dubai rescued Dubai World, providing $9.5bn (£6.4bn) to help ensure Nakheel bond-holders would be paid on time and in full.[13] The move was seen as key to resolving Dubai's debt crisis: "Fix Nakheel, and you go a long way to fixing Dubai real estate; fix real estate, and you fix Dubai," said Aidan Burkitt, hired from Deloitte to be Dubai World's chief restructuring officer.[5]

The company was involved with a sukuk, which raised legal issues in 2009.[14] This sukuk has been the subject of academic study.[15][16] It was reported to be the largest ever sukuk.[17]

In 2010, Sultan Ahmed bin Sulayem was replaced as chairman.[18] In the same year, the company started payments for creditors.[19] In 2011, the company undertook Dhm59 billion (US$16 billion) of debt restructuring.[20] On 6 July 2011, Dubai World’s board of directors announced that Nakheel's legal ownership would be transferred to the Government of Dubai upon completion of the company's financial restructuring.[21] In 2012, it was the subject of a study on corporate governance along with Tamweel Properties & Investments.[22]

In 2013, the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, approved US$898 million of funding for the company and ordered work to start on two major projects on the Palm Jumeirah.[23][24] The company achieved US$1 billion net profit in nine months, delivering 1,200 units with 23,000 under construction in Dubai during 2017.[25] Also in 2017, Nakheel awarded a US$410 million contract for the Palm Gateway to the company Shapoorji Pallonji Mideast to construct a three-tower residential, retail, and beach club complex.[26]

In early 2020, Mohammed Ibrahim Al Shaibani took over as chairman from Ali Rashid Lootah.[27][28] Later in the same year, Naaman Atallah was appointed as the company's chief executive officer (CEO).[29] In May 2020 it was reported some employee's salaries were cut between 30 and 50% for senior staff due to the COVID-19 pandemic.[30]

In September 2022, Nakheel rebranded.[31] It also began a series of announcements regarding frozen projects, having restarted Palm Deira (now rebranded Dubai Islands) in August 2022.[31] After a $4.6 billion debt restructuring deal,[32] it was expected to relaunch Palm Jebel Ali, stalled since 2008,[33] building 1,700 villas and 6,000 apartments on the man-made islands,[32] having previously contacted existing investors offering to buy back their contracts for plots and properties.[34]

Portfolio

A model of Palm Jumeirah at the Nakheel Sales Centre in 2008

Nakheel Properties has a portfolio of projects in Dubai across the residential, retail, hospitality and leisure sectors. Property development projects include:

Retail project developments include Ibn Battuta Mall, Dragon Mart 1 and 2, Golden Mile Galleria, Nakheel Mall,[37] The Pointe, Deira Mall, Deira Islands Night Souk, Warsan Souk, Al Khail Avenue, The Circle Mall and Nad Al Sheba Mall, as well as extensions to Dragon Mart (renamed Dragon City) and Ibn Battuta Mall.

Nakheel has also developed properties outside Dubai, in Montenegro for example.[38]

See also

References

  1. ^ "Dubai Media Office Press Release". Media Office. UAE: Government of Dubai. 31 January 2018. Archived from the original on 6 February 2020. Retrieved 12 February 2018.
  2. ^ a b "Nakheel PJSC". Bloomberg. Retrieved 26 May 2021.
  3. ^ Jacobs, W.A.A. (2005). "Booming Dubai. De olie voorbij". Geografie. Vaktijdschrift voor Geografen. Vol. 8. p. 22–25. hdl:2066/47223. ISSN 0926-3837.
  4. ^ a b "Nakheel PJSC". ClarifiedBy.com. Diligencia Group. Retrieved 4 October 2021.
  5. ^ a b Hughes, Jack (23 November 2010). "Dubai's towering ambitions turned out to be a mirage". Guardian. Retrieved 6 December 2021.
  6. ^ Kirchenbauer, Reid (7 March 2019). "Top 10 Dubai Property Developers: A Complete Guide". Invest Asian. Retrieved 14 August 2021.
  7. ^ a b "Debt crisis puts spotlight on Dubai World". CBC News. 27 November 2009. Retrieved 6 December 2021.
  8. ^ a b Moya, Elena (8 December 2009). "Six Dubai companies downgraded to junk status". Guardian. Retrieved 6 December 2021.
  9. ^ Kerr, Simeon (11 May 2009). "Dubai's Nakheel receives bail-out cash". Financial Times.
  10. ^ Hargreaves, Deborah (13 December 2009). "Fears rise over bond debt of Dubai World's property arm". Guardian. Retrieved 6 December 2021.
  11. ^ Thomas Jr., Landon (25 November 2009). "Dubai Fund Asks for Stay on Debt Payments". The New York Times.
  12. ^ Teather, David (14 December 2009). "Relief for world markets as Abu Dhabi throws $10bn lifeline to Dubai". Guardian. Retrieved 6 December 2021.
  13. ^ Moya, Elena (25 March 2010). "Dubai World saved by $9.5bn rescue package". Guardian. Retrieved 6 December 2021.
  14. ^ Alloway, Tracy (4 December 2009). "Nakheel and the sukuk legal spook". Financial Times.
  15. ^ Salah, Omar (2010). "Dubai Debt Crisis: A Legal Analysis of the Nakheel Sukuk". Publicist. 4 (1): 19–32.
  16. ^ Benabderrahmane, Meryem (2019). "Sukuk Nakheel: Case Study Of Islamic Finance Crisis". مجلة المنارة للدراسات القانونية والإدارية [Al-Manara Journal of Legal and Administrative Studies] (in Arabic). 117. Dar AlMandumah: 126–129.
  17. ^ Abraham, Robin; Long, Shani (January 2007). "Largest sukuk ever". International Financial Law Review. 26 (1): 02626969.
  18. ^ Bianchi, Stefania; Sleiman, Mirna (31 March 2010). "Dubai Replaces Nakheel Chairman". The Wall Street Journal.
  19. ^ Bianchi, Stefania (30 June 2010). "Nakheel Starts Payments to Creditors". The Wall Street Journal.
  20. ^ Hall, Camilla (24 August 2011). "Nakheel completes debt restructuring". Financial Times.
  21. ^ "Dubai Government to take over Nakheel and Limitless". DubaiChronicle. 6 July 2011. Retrieved 14 August 2021.
  22. ^ Alkafaji, Yass; Majdalawieh, Munir (June 2012). "Corporate Governance and Internal Audit in the United Arab Emirates (UAE)". UAE: American University of Sharjah. hdl:11073/8646. Retrieved 14 August 2021.
  23. ^ Sambidge, Andy (2 February 2013). "Dubai ruler approves $898m Nakheel projects". Arabian Business.
  24. ^ "Nakheel – Emirian real-estate company". Britannica. Retrieved 4 October 2021.
  25. ^ Bhatia, Neha (26 October 2017). "Dubai's Nakheel records $1bn net profit in 9M 2017". Construction Week. Retrieved 14 August 2021.
  26. ^ a b De La Cerna, Fatima (14 May 2017). "Nakheel awards $410m contract for The Palm Gateway". Construction Week. Retrieved 14 August 2021.
  27. ^ "Mohammed Ibrahim Al Shaibani takes over as Nakheel Chairman". Gulf News. 21 January 2020.
  28. ^ "Mohammed Ibrahim Al Shaibani takes over as Nakheel Chairman". The Business Times. Singapore. 21 January 2020.
  29. ^ McGinley, Shane (23 November 2020). "Dubai developer Nakheel appoints new CEO". Arab News. Retrieved 14 August 2021.
  30. ^ "Covid-19: Nakheel cuts some salaries by as much as 50%". Arabian Business. 6 May 2020. Retrieved 14 August 2021.
  31. ^ a b "Nakheel unveils massive rebranding, major Palm Jebal Ali updates expected". Arabian Business. 25 September 2022. Retrieved 10 October 2022.
  32. ^ a b Kerr, Simeon (27 September 2022). "Dubai developer Nakheel nears $4.6bn debt restructuring to fund expansion". Financial Times. Retrieved 10 October 2022.
  33. ^ "Nakheel to relaunch and rebrand Palm Jebel Ali". Arabian Business. 28 September 2022. Retrieved 10 October 2022.
  34. ^ Kerr, Simeon (21 August 2022). "Dubai looks to restart mothballed luxury developments for wave of wealthy incomers". Financial Times. Retrieved 10 October 2022.
  35. ^ "AED169 million third expansion takes shape at Nakheel's Dragon City". Media Office. UAE: Government of Dubai. 12 June 2018. Retrieved 15 August 2021.
  36. ^ Munro, Davina (4 October 2015). "Dubai's Nakheel awards $223m Palm Tower contract to two Abu Dhabi builders". ME Construction News. Retrieved 14 August 2021.
  37. ^ "AED1.2 billion Nakheel Mall 85 per cent complete". Media Office. UAE: Government of Dubai. 5 March 2018. Retrieved 15 August 2021.
  38. ^ Mansoor, Zainab (21 September 2021). "Dubai's Nakheel offers Montenegro citizenship on waterfront residences at Porto Montenegro". Gulf Business.
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