Nakheel, the developer behind The Palm Jumeirah in Dubai, has secured Dh17 billion ($4.6bn) in a financing deal as it looks to expand amid a property boom in the emirate.
The agreement includes the refinancing of Dh11bn and additional funds of Dh6bn to support the development of new projects, including the Dubai Islands and other large waterfront projects, Nakheel said on Tuesday.
The Dh11bn refinancing agreement was reached through a syndicate of three banks — Mashreq Bank, Dubai Islamic Bank and Emirates NBD.
“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,” a Nakheel representative said.
The UAE property market has made a strong recovery this year, with Dubai recording the most robust performance in the first nine months of the year since 2011.
The volume of transactions in the nine-month period increased by 60 per cent, compared with a year earlier. It increased 14 per cent in the third quarter to 25,500 deals.
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The market has continued to rebound over the past year on the back of the UAE's broader economic recovery. The Arab world’s second-biggest economy is set to expand this year at its fastest pace in more than a decade.
The UAE economy is forecast to grow 5.4 per cent in 2022, according to the UAE Central Bank.
Emirates NBD, Dubai’s biggest lender, expects the economy to expand 7 per cent in 2022, setting up the country for its fastest annual expansion since 2011, when output grew by 6.9 per cent.
Meanwhile, Abu Dhabi Commercial Bank projects growth of 6.2 per cent, driven by both the oil and non-oil sectors of the economy.
“We are entering a new phase of growth … this new era of Nakheel will be defined by our commitment to developing exceptional communities, enhancing customer-oriented services and delivering value across all touch points,” the Nakheel representative said.
“Nakheel’s residential, retail and hospitality assets have recorded excellent growth despite the challenges of the pandemic.”
In September, the developer unveiled a selection of luxury residences on The Palm amid soaring property sales — which are at a 10-year high — in the emirate.
The launch of Palm Beach Towers 3 follows Palm Beach Towers 1 and 2, both of which are sold out.
In August, the developer unveiled a master plan for Dubai Islands, formerly known as Deira Islands.
“Over the past two years, Nakheel has also invested in building a strong assets portfolio and pipeline of new developments which will deliver consistent revenue growth in future years, and support the goals of the Dubai 2040 Urban Master Plan and ensure the health, well-being and happiness of citizens, residents and visitors,” the developer said.
Nakheel’s projects include The Palm Jumeirah, The World, Jumeirah Islands, Jumeirah Park, Jumeirah Village, Al Furjan, The Gardens, Discovery Gardens, Jebel Ali Village, Dragon City, Nad Al Sheba Villas, Warsan Village, International City and Dubai Islands.