Nakheel Properties (Arabic: نَـخٍـيْـل, palms or palm trees, often just Nakheel) is a property developer based in Dubai, United Arab Emirates. The formal name of the company is Nakheel PJSC (private joint stock company) and it is a subsidiary of Dubai World and a private state-owned enterprise. Nakheel was seen as key to resolving Dubai’s debt crisis in 2009–2010.
The company has been reported to be the second-largest property developer in Dubai after Emaar Properties.
Type Government owned
Industry Real estate
Founded 2003; 19 years ago
Jumeirah 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
The company was founded in 2003, and, as a subsidiary of state-owned Dubai World, 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. 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, and, despite a May cash bail-out, 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, which had requested a stay on debt payments. However, on 14 December 2009, neighbouring Abu Dhabi invested $10bn in Dubai, warding off Nakheel’s debt default, 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. 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.
The company was involved with a sukuk, which raised legal issues in 2009. This sukuk has been the subject of academic study. It was reported to be the largest ever sukuk.
In 2010, Sultan Ahmed bin Sulayem was replaced as chairman. In the same year, the company started payments for creditors. In 2011, the company undertook Dhm59 billion (US$16 billion) of debt restructuring. 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. In 2012, it was the subject of a study on corporate governance along with Tamweel Properties & Investments.
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.The company achieved US$1 billion net profit in nine months, delivering 1,200 units with 23,000 under construction in Dubai during 2017. 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.
In early 2020, Mohammed Ibrahim Al Shaibani took over as chairman from Ali Rashid Lootah.Later in the same year, Naaman Atallah was appointed as the company’s chief executive officer (CEO). 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.
Dubai International City
Dubai Maritime City
Jebel Ali Gardens
Jebel Ali Village
Lake Shore Towers
Nad Al Sheba
Palm Jebel Ali
Trump International Hotel and Tower