Nakheeel Confirms Recceiving State Funds

DUBAI - Nakheel, the state-owned developer of Dubai’s palm-tree-shaped man-made islands, confirmed on Wednesday it received funds from the emirate’s government, some of which will be used to pay contractors as it looks to complete projects.

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By (Reuters)

Published: Fri 29 May 2009, 12:20 AM

Last updated: Sun 5 Apr 2015, 9:49 PM

“Following reports in the media... Nakheel PJSC confirms that it has received funds from the government of Dubai,” the company said in a statement on the NASDAQ Dubai Web site.

“The amount, terms and use of all the funds remain under discussion but some of the funds will be used for payments to contractors,” it said.

Dubai sold $10 billion of bonds to the United Arab Emirates Central Bank earlier this year to raise funds to support state-linked companies suffering from the financial crisis, and plans to issue another $10 billion in bonds later this year. Dubai, the Gulf’s trade and tourism hub, faces a sharp slowdown in its property sector, with real estate prices tumbling 41 per cent in the first three months of 2009, according to property consultant Colliers.

The slowdown has led to project cancellations worth hundreds of billions of dollars.

(Reuters)

Published: Fri 29 May 2009, 12:20 AM

Last updated: Sun 5 Apr 2015, 9:49 PM

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