Nakheel recently received US$9bn (Dh33bn) from the Dubai Government to revive stalled projects and settle debt, and have now announced more options to investors in long-term projects, such as Palm Jebel Ali.

Options

The options outlined by Nakheel are:

• Staying in the project
• Swapping into near-term projects
• Consolidating into other owned properties
• Consolidating into a third-party property
• Receiving credit that will be useable against any property at anytime and redeemable in five years

History

The debate began late 2009 when Nakheel offered buyers of waterfront homes on Palm Jebel Ali alternatives in Jumeirah Heights and Al Furjan. The buyers declined these offers, saying the options were “inadequate and not acceptable”, and said they would hire a law firm to represent them.

Property prices for a villa on Palm Jebel Ali plunged from  $4.35m to $2.45m in just two months when the financial crisis hit the artifical island in second half of 2008. The project was launched in 2003, but came to a halt in 2008 and on April 10 this year investors will meet in London to sketch up a plan how to put pressure on the project.

The National

According to Steve K. Worrel, Director of Mixed Use Development at Yas Island, availability of more workers and bidders have increased because of the economic downturn. Additionally, the prices on materials have gone down.

Currently, 37.000 workers are stationed at Yas Island, whereas 10.000 joined in the past six months. According to mr Worrel, six months ago it was not so easy to get construction workers immediately. It was also difficult to get more than two bidders for various projects.

Now, the situation has changed and the supply of workers and bidders have increased, and construction costs have decreased. Worrel told the press that the money saved would not be used for any additions to the projects, as the projects have fixed plans. About 60 per cent of construction of the first phase of the projects has been completed, costing about Dh38 to Dh40 billion, said Worrel.

Gulfnews

Meed and Zawya have assembled a list of these projects, each valued at $500 million or more, that have been put on hold or cancelled. Below you will find the list sorted by the estimated cost

1. Nakheel Harbour & Tower ($38 billion) – Nakheel Corporation – On hold
2. Al Salam City ($8.2bn) – Al Rajhi Group/Tameer Holding – On hold
3. Asia-Asia Hotel ($3.27bn) – Tatweer – On hold
4. Al Salam City (Phase 1) ($2.70bn) – Al Rajhi Group/Tameer Holding – On hold
5. Dolphin City – $1.70bn – Emirates German Group – On hold
6. Western Region Aluminium Smelter Power Plant ($1.5bn) -Abu Dhabi Water & Electricity Authority – On hold
7. Nad El Sheba Race Course ($1.3bn) – Meydan LLC – Cancelled
8. Mina Rashid Redevelopment ($1bn) – Nakheel Corporation – On hold
9. Aqua Dunya (Dubailand) Phase 2 ($950 million) -Aqua Dunya – On hold
10. Aqua Dunya (Dubailand) Phase1 ($950 million) – Aqua Dunya – On hold
11. Investment Corp of Dubai ($817 million) – Investment Corp of Dubai – On hold
12. High Rise Boulevard ($817 million) – High Rise Real Estate – On hold
13. Anara – ($800 million) – Tameer Holding – On hold
14. Plaza Major (Jumeirah Village) ($800 million) -Tasees, Makaseb Holding, Ishraqah – On hold
15. Falcon City of Wonders (Dubailand) ($680 million)- ETA Star – Cancelled
16. Atrium Project ($654 million) – Sunland Group – On hold for redesign
17. Palm Deira: mixed-use building project ($600 million) – Nakheel Corporation – On hold
18. Palm Trump Hotel & Tower ($600 million) -Nakheel Hotel & Resorts and The Trump Organisation – On hold
19. The Vantage ($545 million) -Cirrus Developments LLC – On hold
20. Light Rail & Tramway (Dubai Waterfront) ($500 million) -Nakheel Corporation – On hold
21. Rotating Tower (Jebel Ali) ($500 million) – Merjen Group – On hold