Nakheel, the developer behind Dubai’s artificial palm-shaped islands, said Tuesday that it secured $4.6 billion (AED 17 billion) in financing from a group of local lenders, as the property giant accelerates plans for new waterfront projects amid a property boom in the city.
The master developer said in a statement that it raised $3 billion (AED 11 billion) in refinancing and additional funds of $1.6 billion (AED 6 billion) through a syndicate from Emirates NBD, Mashreq Bank and Dubai Islamic Bank. The company plans to use the $1.6 billion (AED 6 billion) to “accelerate the development of its new projects including Dubai Islands and other large waterfront projects.
The transactions come amid a boom in the UAE’s property market which is benefitting from an influx of wealthy investors such as Russians seeking to shield their assets, bankers fleeing strict COVID-19 restrictions in Asia and rich Indians seeking second homes.
“Dubai’s real estate sector is recording robust growth, driven by regulatory reforms, such as the issuance of long-term visas, and a buoyant economy supported by the robust growth of retail, leisure and hospitality,” Nakheel’s spokesperson said in a statement.
Property consultancy firm Betterhomes said in a July report that first-half residential real estate transaction volumes in Dubai soared by 60%, with an 85% rise in the value of properties sold. Earlier this year, Nakheel sold a beachfront land plot on Palm Jumeirah Island to Sharjah’s Arada Developments in a deal valued at $65.4 million (AED 240 million).
The financing is expected to further strengthen Nakheel’s financial position and reflects the confidence of the banking institutions in the strategic new focus of the company.
