Mr Ali Lootah Chairman of Nakheel stated that they were making 40 percent of the payments towards the Palm Jumeirah project and that it is a significant part of the recapitalization efforts following initial payments of  AED 500,000 which began in March 2010.

The Chairman also thanked His Royal Highness Sheikh Mohammed bin Rashid Al Maktoum, who is the Prime Minister of UAE and Ruler of Dubai, The Dubai Supreme Fiscal Coimmiittee and partners in the project for the support extended in the project. He said the restructuring could not have been achieved without the support and patience of the above mentioned parties in earnest throughout.

Nakheel one of Dubai’s key players in developing is involved in creating world class destinations and landmark constructions in Dubai. Some of its famous projects are known the world over such as the Palm Jumeirah,  Palm Jebel Ali, Jumeirah Waterfront, Palm Deira and international city which are part of its current portfolio of development in Dubai.

The residents of three main projects being handled by Nakheel- Shoreline apartments, Discovery Gardens and Palm Jumeirah – were informed a few days ago that the air con facility to their residences would be disconnected since Nakheel had not signed an agreement with Palm Utilities, a company that handles this essential utility. In addition to this, Palm Utilities also threatened to stop the chill water supply. This put the lives of the residents at peril since it is impossible to live in this part of the world without a constant supply of cold water and air conditioning.

However, a spokesperson for Nakheel, confirmed on e-mail that the dispute has been amicably resolved and there will be no disconnect in the utilities.

Nakheel has reached an agreement with Dubai World to help in restructuring the debts up to the tune of $23.5 billion.

The special meeting of nine senior business leaders of the Arabian Business Think Tank has predicted that the prices for the apartments in Palm Jumeirah, which are apartments built by Nakheel, will come down to just AED1,022 in the next 12 months.

As compared to AED3000 per square foot in 2008, the average prices now stand at AED1200 per square foot. The reasons put forth by the member of ABTT for this fall in prices are the unwillingness by financial institutions to give approval to new mortgages and also the oversupply of property in the market.

Other aspects being predicted by ABTT officials at the lunch hosted by Andrew Neil, the ITP chairman, were gold prices, euro strength and even the regional stock market value.

Last month, Landmark Advisory said that the decline in property prices in the month of April was due to the excess supply of properties in certain prominent areas of Dubai.

The Dubai Lease Guide dated April 2010, from Landmark Advisory, said that properties which were faring well till date, like the Palm Jumeirah and Dubai Marina, also saw a 6% fall in the property prices due to this reason.

The property company went on to say that the average rent for two bedroom apartments in Palm Jumeirah had shown a 4% drop from AED115000 from AED 120000.

Kees Hartzuiker, the CEO of Rixos, while talking to Emirates Business mentioned that Zabeel Saray would be open to guests in the third quarter this year. He also went on to mention they were targeting the opening on the day of Eid, which is in September.

This hotel that has 410 rooms is locate at Palm Jumeirah’s crescent will feature the world’s largest spa encompassing an area of over 8,000 sq mts. This hotel, that took three years to get ready, will have four hammams and sixty two rooms for treatment in its spa. In addition to this, the hotel will also house high end boutiques and have multiple options for entertainment. Provisions have been made for theaters and arenas to be built within the hotel.

Hartzuiker went on to mention that this hotel will focus largely on entertainment and will introduce entertainment for families and even dinner shows. He mentioned that despite the only other competitor to them is the Palm Atlantis, there was market for both hotels to flourish without eating into each other’s profits.