Nakheel plans $3.81bn projects in next three years

Dubai ruler briefed on plans for Nakheel's raft of construction projects which include Deira Boulevard and a mall with a 500m glass dome

Nakheel's Al Khail Avenue project, one of several planned for the immediate future.
Nakheel's Al Khail Avenue project, one of several planned for the immediate future.

Developer Nakheel is planning to implement nearly $4 billion worth of projects in Dubai over the next three years, Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum was told on Tuesday.

Sheikh Mohammed, also Vice President and Prime Minister of the UAE, was briefed on the new projects worth AED14 billion ($3.81 billion) during a tour of Nakheel's head office, news agency WAM reported.

He was received by Ali Rashid Lootah, chairman of Nakheel, it said without giving any further details about the proposed projects.

Sheikh Mohammed was briefed by Lootah on projects, which include Deira Boulevard, to be built on an area of more than 9 million square feet.

The project includes Deira Mall, which will accommodate 3,000 shops and will be surrounded by about 16 residential towers, offices, four residential complexes including 2,500 apartments and sports walkway, hotels and upscale resorts, recreational and tourist facilities and other features such as restaurants, cafes and a children's garden as well as charming views of the Arabian Gulf waters.

The mall will feature a glass dome that will be half a kilometre long.

He was also briefed about the expansion project of Ibn Battuta. The project includes a covered indoor garden, equivalent to four football pitches and a lobby for restaurant courts, along with a five-star hotel, a cinema and an additional 4,000 vehicle parking spaces.

WAM said Sheikh Mohammed expressed satisfaction about the development projects and praised the efforts of the company.

In January, Nakheel said it expects to maintain profit growth of 40% seen last year in 2015 and 2016 as it benefits from diversifying into the retail and hospitality sectors.

The positive outlook came after the state-owned company reported a 43.2% jump in full-year profit for 2014 to AED3.68 billion ($1 billion), despite a substantial drop in revenue.

Nakheel was one of the developers worst hit by Dubai's real estate crash, which knocked 49% off prices between the third quarter of 2008 to the market bottom in the second quarter of 2009.

The sector has since rebounded and Nakheel paid off its pre-crisis bank debt four years ahead of schedule.

Nakheel said it expected to secure AED7 billion worth of new construction contracts in 2015 and hand over 1,200 villas, up from AED5.3 billion of contracts in 2014.

 

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