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The Death of Development, Part II
Dubai master-developer Nakheel, which aimed for the stars with iconic projects, prepares for a dramatic restructuring, reports Trends. Part II.
January 13, 2010 4:01 by Edmund Sheen
Negative cash flow
Most developers in Dubai are confronted with no sales and zero cash flow. But Nakheel, in the words of one consultant, has a negative cash flow.
“That’s because large developers, who have paid several installments, now don’t want to build and want their money back.”
Nakheel can refuse to give money back, but in some cases – such as payments worth only around 10 percent – it is obligated to pay it back, says an insider.
Nakheel-watchers are now waiting to see what future steps the Dubai government will take to finally end the disastrous operational independence of Nakheel and its parent company.