Nakheel’s strong financial performance in 2012 underpins the continued support of the Government of Dubai and the commitment by Nakheel management in implementing its post-restructuring business plan, and is a clear sign of a recovery in Dubai’s real estate sector.
Nakheel – the group behind Palm Jumeirah, The World, Jumeirah Islands, among other – announced its results for the financial year ending 31 December 2012, posting a profit of over €403 million, representing an increase of 57% over 2011.Revenues of €1.57 billion in 2012 were up 91% against revenues of €825 million for the financial year ending 31 December 2011."2012 has been a hugely successful year for Nakheel, building on the momentum achieved in 2011. Our financial performance reflects the continuous support and commitment by the Government of Dubai and Nakheel’s Board of Directors to implement a sustainable, realistic long term business strategy. It is also proof that investor confidence is back, and that Nakheel is firmly moving forward and delivering," states Chairman, Nakheel, Ali Rashid Lootah.According to the group, this growth is also a clear sign of a recovery in Dubai’s real estate sector. While expanding its development activities in 2012, Nakheel remained focused on meeting its restructuring commitments to stakeholders.The company completed interest and profit payments of around €161 million to all lenders in 2012, and has made cash payments of just over €2 billion to various trade creditors and contractors since the start of its restructure. Long term customer liabilities have been significantly reduced – amicably – by almost €1.5 billion through consolidation and swap schemes offered to a large number of customers."Our development initiatives to date are aligned with our corporate objective of creating a long term sustainable business as well as contributing to the growth of Dubai’s real estate sector. We are diversifying our portfolio by seizing on growth opportunities in every sector of the market, and are recruiting in line with our expansion," added LootahNakheel’s plans for 2013 include the handover of around 3,000 units to customers, investment of €1.3 billion in new projects to be completed over a three year period, expansion of Ibn Battuta Mall and continued enhancement of existing communities with local facilities including shopping centres and parks.
