DUBAI: Indebted developer Nakheel plans to build a new 192-unit residential project on one of its man-made palm-shaped islands, relying on unit sales and internal resources to fund the construction, its chairman said yesterday.
Nakheel's Palm Views will consist of two buildings on the Palm Jumeirah, with each unit priced at one million dirhams ($272,300). "We will look at sales and also have our own resources," Ali Rashid Lootah said of funding, after launching the new project. Lootah said financing for the project was "secure" but declined to give any further details. The Dubai government-owned developer began taking orders for the units yesterday, he said. The developer was at the centre of Dubai's 2009 debt crisis and wrote off $21.4 billion of its real estate assets.
Nakheel, which overstretched itself with ambitious projects such as the palm islands and islands shaped like a world map, completed its $16 billion restructuring last August.
The Palm Views are Nakheel's second new residential project in 2012. It announced construction of a 100-unit townhouse project on the Palm Jumeirah earlier this year.
The new project is a shift from Nakheel's earlier focus on large, luxurious villas and condos. All units at the Palm Views will be studio apartments and covers and area of 500 square feet.
"Such type of a project does not exist on the Palm. There is a lot of demand for this, especially among the youth. We are confident that it will sell," said Lootah.
Construction will begin by the end of 2012 and the project is expected to be completed in the first quarter of 2014.
Lootah also said that the company's first-quarter earnings will be an improvement on last year's. The results are due next week.
Nakheel plans new housing project on Palm
Nakheel plans new housing project on Palm
Closing Bell: Saudi main index slips to close at 11,228
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, lost 23.17 points, or 0.21 percent, to close at 11,228.64.
The total trading turnover of the benchmark index was SR2.99 billion ($797 million), as 170 of the stocks advanced and 82 retreated.
On the other hand, the Kingdom’s parallel market Nomu gained 449.38 points, or 1.90 percent, to close at 24,093.12. This comes as 43 of the stocks advanced while 27 retreated.
The MSCI Tadawul Index lost 6.07 points, or 0.40 percent, to close at 1,511.36.
The best-performing stock of the day was Obeikan Glass Co., whose share price surged 7.54 percent to SR27.66.
Other top performers included Alamar Foods Co., whose share price rose 6.80 percent to SR47.10, as well as Saudi Kayan Petrochemical Co., whose share price climbed 6.79 percent to SR5.66.
Saudi Investment Bank recorded the steepest drop, falling 3.21 percent to SR13.56.
Jahez International Co. for Information System Technology also saw its share price fall 3.15 percent to SR13.55.
Rabigh Refining and Petrochemical Co. declined 2.78 percent to SR7.34.
On the announcements front, Tanmiah Food Co. reported its annual financial results for the period ending Dec. 31. According to a Tadawul statement, the company recorded a net loss of SR18.8 million, compared with a net profit of SR95.8 million a year earlier.
The net loss was mainly due to ongoing market challenges that resulted in continued pricing pressures in fresh poultry, inflationary cost pressures, higher financing expenses, and depreciation and ramp-up costs from new facilities, partially offset by increased production volumes and cost-optimization initiatives.
Tanmiah Food Co. ended the session at SR58.20, up 3.72 percent.
United International Holding Co., also known as Tas’heel, announced its annual financial results for the period ending Dec. 31. A bourse filing showed the company recorded a net profit of SR273.64 million in 2025, up 23.05 percent from 2024, primarily driven by a 23.4 percent rise in revenues. The revenue growth helped lift gross profit by 23.7 percent.
Tas’heel ended the session at SR146.80, down 0.28 percent.
