Dubai developer blames loss on delayed construction projects amid reports palm islands projects are sinking
Troubled Dubai developer Nakheel has posted a loss of over 13bn dirhams (£2.1bn) for the first half of 2009.
The state-linked company blamed the loss primarily on construction projects that it has put on hold and land writedowns as a result of the global downturn.
Nakheel's frozen projects include two of its three palm shaped islands, the Palm Deira and Palm Jebel Ali, and the World Islands scheme.
Nakheel's revenue slumped 78% to 1.97bn dirhams from 9bn dirhams (£1.5bn)a year earlier in H1 2009.
Its liabilities for the period rose 7.2% to 73.bn dirhams (£12.2bn), as the firm made a loss 13.4bn dirhams (£2.2bn), the company said in a statement today to the Dubai Nasdaq exchange.
The news comes amid reports that the palm islands are sinking, resulting in them losing 5mm a year. Nakheel denied the reports.
Dubai is a subsidiary of Dubai World, which is seeking to restructure its debt. It is holding talks with creditors to restructure $26 bn of debt, including a $3.52 bn Islamic bond issued by Nakheel, which matures on the 14 December.