Nakheel has announced its first major project since the onset of the downturn in Dubai, with a new townhouse development on the Palm Jumeirah replacing originals plans to berth the QE2 ocean liner as a luxury hotel off the man-made island.
The 102 townhouses are to be located off the "trunk" of the Palm Jumeirah.
The cost of the development has not yet been disclosed.
"The QE2 will be placed in a much better location," said Ali Rashid Lootah, the chairman of Nakheel. "The Government of Dubai is developing an up-to-date modern cruise terminal. That will be better environment. It will stay in Dubai. The QE2 will stay in Dubai." The ship is now owned by Istithmar, also part of Dubai World.
Mr Lootah confirmed that it will no longer be part of the Palm Jumeirah development and will remain in the Port Rashid area of Dubai, where it is currently berthed.
The developer was not going to restart any unfinished projects in the near future, Mr Lootah said. "We have to revisit as per the demand."
The remainder of Nakheel's sukuk will be issued before the end of this year, he added.