Dubai developer pays back debt early

The Palm Jumeirah, one of Nakheel's previous projects Photo: Bertrand Duperrin

One of the emirate's leading developers, responsible for the iconic Palm Jumeirah, announced this week that it will pay off more than half of its AED6.8 billion bank debt one year before its first due date. The company says it will pay AED2.35 billion in the first three months of this year, following by another AED1.65 billion in the third quarter.

"In 2011, Nakheel pledged to construct and deliver some 9,000 units over a five year period across a number of projects that had been stalled during the global financial crisis," Nakheel chairman Ali Rashid Lootah said in an official statement (quoted by World Property Channel).

"We rose to this challenge and, thanks to the support of the Government of Dubai, Nakheel customers and other stakeholders, have been able to achieve this remarkable milestone."

Dubai has been leading the world's house price growth in recent months as confidence surges in the emirate's property market. With Knight Frank already forecasting another booming year for Dubai in 2014, Nakheel's decision to pay off its debts early will only drive confidence up even higher.