Dubai Developer Looking for State Help

State owned developer Nakheel looks set to receive more financial help from the Dubai government as house prices continue to fall in the country.

Nakheel has already received loans through Dubai’s bond scheme – a bail-out scheme worth $10 billion which was launched back in February – as they have seen liquidity problems thanks to house prices falling and a stagnant real estate market.

Nakheel are looking to repay a $3.52 billion Islamic bond, which was issued in 2006, before it matures in December as part of a restructuring move. The bond money was used to finance some of its many developments including the famous Palm Islands. The developer, like so many others, is now trying to work it’s books out so it can settle their debts and continue to build, develop and invest in Dubai’s property and real estate market.

To aid them, Nakheel has already embarked on cot-cutting exercises and is in the process of asking many of it’s contractors to take discounts on payments due.

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