Dubai developer Nakheel secures 17 billion dirhams in financing
DUBAI state developer Nakheel has secured 17 billion dirhams (S$6.5 billion) in financing from local banks for new projects, including Dubai Islands and other waterfront developments.
The developer of the palm shaped islands off Dubai said Tuesday (Nov 8) the financing was through a syndicate of three local lenders, Emirates NBD, MashreqBank and Dubai Islamic Bank.
The transaction comprises 11 billion dirhams in refinancing, and additional funds of six billion dirhams through the syndicate.
Nakheel is planning to develop another man-made island named Dubai Islands, formerly known as Deira Islands, comprising five islands over a total area of 17 square kilometres (sq km).
The transactions will further strengthen Nakheel’s financial position, a company spokesperson said, and will “reflect the confidence of the banking institutions in the strategic new focus of the company”.
The state-owned business was one of the developers worst hit by Dubai’s real estate crash at the turn of the decade, forcing it into a massive debt restructuring.
Dubai’s red-hot property market surged in the first half of this year as investors piled in, with Russians among the top five buyers. The emirate is benefiting from an influx of wealth, in the wake of Western sanctions against Moscow over its invasion of Ukraine.
First-half residential real estate transaction volumes rose 60 per cent, with an 85 per cent rise in the value of properties sold, property consultancy Betterhomes said in a July report.
Dubai’s property market began its recovery early last year after the emirate eased pandemic restrictions faster than most cities around the world. REUTERS
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