Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Dubai property giant repays debt four years early  Join our daily free Newsletter

MENAFN - AFP - 20/08/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) Nakheel, the real estate giant at the heart of Dubai's financial crisis, confirmed Wednesday that it would repay all of its 7.9 billion dirhams (2.15 billion) bank debt almost four years ahead of schedule.

The group said it had "issued instructions" for 5.54 billion dirhams to be paid to lenders on Thursday, after a previous payment of 2.35 billion dirhams was made in February.

Nakheel, which built high-profile projects including a palm-shaped island in the Gulf and a cluster of isles in the form of a world map, also said it would pay interest of 129 million dirhams owed.

It will repay 31 banks - 10 from the UAE and 21 from overseas.

Nakheel's final instalment had been due in March 2018 but in June chairman Ali Rashid Lootah said the entire sum would be paid this summer.

He said then that the cash was being "generated from Nakheel's own income, not from the support fund of the government".

The property behemoth had piled up a large mountain of debt during five years of rapid growth in Dubai's property sector, before the global financial crisis hit the Gulf emirate in 2009.

The company was part of government-linked Dubai World group, which sent jitters in global markets when it signalled in autumn 2009 that it was facing difficulties paying off debts that totalled around 24.9 billion.

The government intervened to rescue the group, bolstered by 20 billion in aid from neighbouring Abu Dhabi.

As part of the restructuring of Nakheel, the government injected 9.5 billion that was converted into equity, separating the company from Dubai World and becoming fully owned by the government.

Nakheel is benefiting from a strong rebound in Dubai, where economic growth has been steady thanks to the trade, transport and tourism sectors after contracting 2.9 percent in 2009.

Last month, Nakheel said its profits surged 54 percent in the first half of 2014 to reach 502.7 million.

In addition to property developments, Nakheel has been involved in retail and hospitality.


 


AFP




  MENA News Headlines
 Nov 22 2014 - Egypt to offer projects to domestic, foreign investorsAFP
(MENAFN - AFP) Egypt will offer a slew of projects to domestic and foreign investors at a conference in March aimed at kick-starting an economy battered by years of political unrest, the prime ...

 Nov 22 2014 - Qatar's Torrente and Carella finish second and fifth in UAEThe Peninsula
(MENAFN - The Peninsula) The Qatar Team's Shaun Torrente and Alex Carella finished second and fifth respectively in a processional Grand Prix of Abu Dhabi, the penultimate round of the 2014 UIM F1 ...

 Nov 22 2014 - Qatar's GDP expands by 6.3 percentMENAFN
(MENAFN) According to Qatar's Prime Minister and Interior Minister, the country's gross domestic product (GDP) expanded by 6.3 percent, The Peninsula Qatar reported.The minister attributed the growth ...

 Nov 22 2014 - Emirates targets double-digit passenger growth in FY 2014-15MENAFN
(MENAFN) Emirates Airlines is targeting double-digit passenger growth in its current financial year despite a first quarter operational slowdown and an unstable global environment, Gulf News ...

 Nov 22 2014 - US- ReceptionThe Peninsula
(MENAFN - The Peninsula) US Secretary of Defence Chuck Hagel (left), welcomes the Minister of the National Guard of Saudi Arabia, Prince Mitib bin Abdullah bin Abdulaziz Al Saud at the Pentagon in ...

 Nov 22 2014 - Egypt- Appeal for releaseThe Peninsula
(MENAFN - The Peninsula) Lois (right) and Juris Greste, parents of Al Jazeera's Australian journalist Peter Greste, arrive at a press conference to appeal to Egypt's President Abdel Fattah Al Sisi ...

 Nov 22 2014 - Bahrain oppn urges end to power monopolyThe Peninsula
(MENAFN - The Peninsula) Bahrain's Shia opposition warned yesterday ahead of elections that failure by the kingdom's Sunni rulers to loosen their grip on power could trigger a surge in violence.The ...

 Nov 22 2014 - Germany- Merkel rejects unilateral Palestinian recognitionThe Peninsula
(MENAFN - The Peninsula) Chancellor Angela Merkel yesterday rejected the idea of Germany recognising Palestine as a state unilaterally, saying the Palestinians and Israel could solve their ...

 Nov 22 2014 - Qatar- Children's rights highlightedThe Peninsula
(MENAFN - The Peninsula) Children highlighted their rights and need to be protected from violence during activities organised in various public places in Doha to celebrate Universal Children's Day. ...

 Nov 22 2014 - Qatar- Philippine official warns over maids' rightsThe Peninsula
(MENAFN - The Peninsula) Manpower agencies and employers who violate the Household Service Workers Policy Reform Package will face penalties, visiting Philippine Labour Secretary Rosalinda Baldoz ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help