Economy

Main article: Economy of Dubai

Dubai Chamber of Commerce and Industry (centre)

Dubai's gross domestic product as of 2008 was US$ 82.11 billion.[72] Although Dubai's economy
was built on the back of the oil industry,[73] revenues from oil and natural gas currently account
for less than 6% of the emirate's revenues.[8] It is estimated that Dubai produces 50,000 to 70,000
barrels of oil a day[74] and substantial quantities of gas from offshore fields. The emirate's share in
UAE's gas revenues is about 2%. Dubai's oil reserves have diminished significantly and are
expected to be exhausted in 20 years.[75] Real estate and construction (22.6%),[10] trade (16%),
entrepôt (15%) and financial services (11%) are the largest contributors to Dubai's economy.[76]
Dubai's top exporting destinations include India (US$ 5.8 billion), Switzerland (US$
2.37 billion) and Saudi Arabia (US$ 0.57 billion). Dubai's top re-exporting destinations include
India (US$ 6.53 billion), Iran (US$ 5.8 billion) and Iraq (US$ 2.8 billion). The emirate's top
import sources are India (US$ 12.55 billion), China (US$ 11.52 billion) and the United States
(US$ 7.57 billion). As of 2009 India was Dubai's largest trade partner.[77]

Historically, Dubai and its twin across the Dubai creek, Deira (independent of Dubai City at that
time), were important ports of call for Western manufacturers. Most of the new city's banking
and financial centres were headquartered in the port area. Dubai maintained its importance as a
trade route through the 1970s and 1980s. Dubai has a free trade in gold and, until the 1990s, was
the hub of a "brisk smuggling trade"[18] of gold ingots to India, where gold import was restricted.
Dubai's Jebel Ali port, constructed in the 1970s, has the largest man-made harbour in the world
and was ranked seventh globally for the volume of container traffic it supports.[78] Dubai is also a
hub for service industries such as information technology and finance, with industry-specific free
zones throughout the city. Dubai Internet City, combined with Dubai Media City as part of
TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority) is one such
enclave whose members include IT firms such as EMC Corporation, Oracle Corporation,
Microsoft, and IBM, and media organisations such as MBC, CNN, BBC, Reuters, Sky News and
AP.

The government's decision to diversify from a trade-based, oil-reliant economy to one that is
service and tourism-oriented made property more valuable, resulting in the property appreciation
from 2004–2006. A longer-term assessment of Dubai's property market, however, showed
depreciation; some properties lost as much as 64% of their value from 2001 to November 2008.
[79]
The large scale real estate development projects have led to the construction of some of the
tallest skyscrapers and largest projects in the world such as the Emirates Towers, the Burj
Khalifa, the Palm Islands and the world's second tallest, and most expensive hotel, the Burj Al
Arab.[80] The Dubai Financial Market (DFM) was established in March 2000 as a secondary
market for trading securities and bonds, both local and foreign. As of fourth quarter 2006, its
trading volume stood at about 400 billion shares, worth $95 billion in total. The DFM had a
market capitalisation of about $87 billion.[67]

Dubai's property market experienced a major downturn in 2008 and 2009 as a result of the
slowing economic climate.[12] Mohammed al-Abbar, Chief Executive Officer of Emaar told the
international press in December 2008 that Emaar had credits of $70 billion and the state of Dubai
additional $10 billion while holding estimated $350 billion in real estate assets. By early 2009,
the situation had worsened with the global economic crisis taking a heavy toll on property
values, construction and employment.[81] As of February 2009 Dubai's foreign debt was estimated
at approximately $80 billion, although this is a tiny fraction of the sovereign debt worldwide.[82]

A City Mayors survey rated Dubai as 44th among the world's best financial cities,[83] while
another report by City Mayors indicated that Dubai was the world's 33rd richest city, in terms of
purchasing power parity (PPP).[84] Dubai is also an international financial centre and has been
ranked 37th within the top 50 global financial cities as surveyed by the Mastercard Worldwide
Centres of Commerce Index (2007),[85] and 1st within the Middle East.
Nakheel Properties
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Nakheel PJSC

Type Government owned

Industry Real Estate

Founded 2000

Headquart
Dubai, United Arab Emirates
ers

Area
87 countries
served

Ali Rashid Ahmad Lootah (Executive

Key
Chairman), Chris O'Donnell (Chief
people
Executive Officer )

Employees 2000

Nakheel (Arabic: ‫ نخيل‬palms or palm trees) is a real estate developer in Dubai and creator of
several land reclamation projects, including the Palm Islands, the Dubai Waterfront, The World
and The Universe Islands. Its residential projects include The Gardens, International City,
Jumeirah Islands and Jumeirah Lake Towers. Its shopping projects include The Dragon Mart (At
International City) and Ibn Battuta Mall. Its main competitor in residential development in Dubai
is Emaar Properties.

Contents
[hide]

• 1 Properties portfolio
• 2 Financial
difficulties
• 3 Image gallery
• 4 External links

• 5 References
 [edit] Properties portfolio
Nakheel's flagship properties are the three man-made palm tree shaped islands on the coast of
Dubai. Nakheel operates under the umbrella of Dubai World, which manages various businesses
on behalf of the Dubai government. The executive chairman of Al Nakheel is Sultan Ahmed bin
Sulayem.

Nakheel's portfolio of real estate include the Palm Islands (Palm Jumeirah, Palm Jebel Ali, Palm
Deira), The World Islands, The Universe Islands, Dubai Waterfront, The Gardens, Jumeirah
Lake Towers, Discovery Gardens, Lost City, Jumeirah Islands, Jumeirah Heights (a residential
complex within Jumeirah Islands, Jumeirah Village, Jumeirah Park, Al Furjan, International
City, Jewel of the Palm, The Golden Mile (which is in the trunk of the Palm Jumeirah), Nakheel
International Hotel and Tower, another project on the trunk of the Palm Jumeirah, and Ibn
Battuta Mall.

Nakheel has announced plans for the Nakheel Tower, which will be the world's tallest
skyscraper, if built, standing over two thirds of a mile high. The tower will take over a 10 years
to complete and will be the center of a vast development complex, the Nakheel Harbour and
Tower. In early 2009 the tower was suspended due to the effects of the worldwide credit crunch.

The company also owns the retired ocean liner, Queen Elizabeth 2, which they planned to
convert into a luxury hotel, that was to have been moored at the Palm Jumeirah.[1]

[edit] Financial difficulties

On November 25, 2009, the Dubai government announced that Dubai World intended to "ask all
providers of financing to Dubai World and Nakheel to 'standstill' and extend maturities until at
least 30 May 2010".

On December 14, 2009, the Dubai government received $10 billion in surprise aid from Abu
Dhabi for debt-laden Dubai World, which said it would use $4.1 billion of it to repay its Nakheel
unit's Islamic bond maturing on the same day.[2]

Our developments have become true icons across the world.