Dubai developer Nakheel plans to repay up to $1.1 billion of bank debt due this year, its chairman said, as the company benefits from a rebound in the emirate’s property sector.
Debt repayments ahead of schedule
Nakheel, known as the builder of Dubai’s palm-shaped islands, was taken over by the government as part if a $16 billion rescue plan completed in 2011, after the bursting of a real estate bubble in 2009.
The company said in a statement that strong real estate growth and improved economic conditions boosted its finances.
It also plans to pay another 3 billion dirham, or nearly $817 million, in 2015 when the initial installment of 6.8 billion dirham was due.
Nakheel’s financial crisis was a key trigger for Dubai’s 2009 financial crisis, which prompted multibillion-dollar bailouts by the government.
The company not only worked diligently to deliver its revised business plan, but also introduced new development projects to revive its core business.