Recapitalisation Plan

Q. What does this recapitalisation plan mean for Nakheel?

A. If approved, this plan would provide Nakheel with a stable, financial footing and enable it to meet its outstanding obligations to customers and trade creditors. This means the completion of near-term developments. We believe that this plan represents the best opportunity for all stakeholders.

Q. What does this mean for Nakheel’s customers?

A. A significant proportion of the funds would be used to complete the construction of near-term projects. Nakheel could then provide customers with greater clarity on handover and completion dates of these projects. Customers should speak to a customer services representative to discuss options.

Q. What is the timeline for this plan to be implemented?

A. The plan needs to be approved by Nakheel’s creditors. If consensual agreement is reached then each plan could be implemented within the next two to three months.

Q. Will those projects currently on hold resume construction?

A. If the plan is approved then it would allow for a prompt completion of projects nearing completion.

Q. What makes you so confident that Dubai’s real estate market can prosper again?

A. Dubai is the outstanding hub of the region. Many global businesses have their regional headquarters here, as have many international banks. There is a growing, international population and it is the most popular tourist destination in the region. With such vested interest, we are confident that prospects will recover quickly.

Q. How has Nakheel determined which projects are near-term and which are longer-term?

A. Projects have been prioritized following an assessment of construction stages, cost of completion, customer collections and market supply and demand.

Q. What are my options if I own properties in a longer-term project?

A. - Nakheel will continue to assist customers in their consolidation or swapping process to find an alternative investment in an active development if they so choose.

    - Where customers of long-term project do not wish to consolidate into near-term projects, we will continue to offer customers tradable credit equivalent to 100% of their deposits paid to date for built land or undeveloped land. This credit is issued with a five year expiry date and can be exchanged at the time of expiry for cash. They carry no interest.

Q. What does today’s announcement signify for Dubai’s real estate market and wider investment in the region?

A. The Nakheel plan, if implemented, will help encourage liquidity to return to the economy and the market with the assurance of Government support and Nakheel’s sustained role within development for the region.

Q. Will Nakheel trade creditors get paid in full?

A. - All trade creditors owed AED 500,000 or less are being paid in full.

    - Trade creditors will be offered 100% of the principal amount with:

- 40% achieved through a cash payment; and

- 60% in the form of a publicly tradable security at a commercial rate

Q. Will the arrangement apply to both international and local creditors?

A. Yes, it applies to all of Nakheel’s trade creditors. Trade customers and suppliers should speak to their regular Nakheel contact to discuss options.