The past 12 months have played out like one long highlight reel for Nakheel. In August last year, the developer of Palm Jumeirah declared itself debt-free, completing a five year financial restructuring undertaken following the financial crash. That was followed by the announcement of the highest annual net profit in the companys history thanks to the expansion of all three of its major divisions in retail, hospitality and residential leasing businesses.
Earnings of AED 4.96bn ($1.35bn) in 2016 were 13% higher than the previous year. Over the past year Nakheel has announced billions of dollars worth of new projects and handed out construction contracts worth hundreds of millions more. In fact Nakheel anticipates awarding AED 10bn in construction contracts in 2017 alone, more than three times the AED 3bn booked in 2016. Among the biggest recent awards is a AED1.5bn ($408mn) deal with Shapoorji Pallonji to build The Palm Gateway, a three-tower residential, retail and beach club complex at the foot of the world-famous Palm Jumeirah.
The project is one of three high rise developments by Nakheel on the man-made island. The Palm Tower, a 52-storey luxury hotel and residential complex is currently under construction, while PALM 360, a 220 metre twin-tower penthouse, apartment and hotel complex, is currently being designed. Another twin tower residential project is earmarked to be built next to Ibn Battuta Mall. Nakheels retail and hospitality divisions are also experiencing a boom. In April the company awarded United Engineering Construction a AED 4.2bn ($1.14bn) construction contract to build the biggest mall in Dubai, Deira Mall. The AED 6.1bn project will be the centrepiece of Deira Boulevard, a AED 5bn community with 16 residential towers.
Both of these are major components of the Deira Islands master development, which will transform the area traditionally known as Old Dubai into a retail, tourism, living and leisure hub and be home to more than 250,000 people when complete. On the hospitality front Nakheel now has two hotels operational with 16 more in the pipeline. Total investment of around AED 5bn in the sector will bring over 5,800 rooms and serviced apartments to Dubai in line with the governments 2021 vision.