Dubai World’s real estate unit Nakheel said on Wednesday it recorded a six-month loss of $3.65 billion (AED 13.4 billion) amid falling revenues and assets in Dubai’s property market.
Nakheel, whose $3.5 billion Islamic bond debt pushed parent Dubai World to ask lenders for a temporary suspension of payments, announced its revenues fell 78.1 percent to $537 million (AED 1.96 billion) over the past six months from $2.45 billion (AED 9 billion) a year earlier.
Blaming Dubai’s falling property prices, Nakheel said “sales and volumes and transaction activity remained low” during the first half of the year. The developer added that it took AED 12.2 billion in “impaired losses” during the same period and is “scaling down or slowing some development activities beyond 2012.”
Government-owned Dubai World, the parent company of Nakheel, is currently in talks with creditors to restructure $26 billion of debt, including the $3.52 billion Islamic bond of Nakheel maturing on December 14.
