UAE developer Nakheel records 27% profit increase

Nakheel, the United Arab Emirates' ( UAE) state-owned developer, said Sunday that its net profit for 2013 amounted to 700.85 million U.S. dollars amid growing global investor confidence and robust economic conditions. In a media statement posted in its website, Nakheel, the developer of the man-made island Palm Jumeirah, said it generated 2.56 billion dollars in 2013, representing a 20-percent increase year-on-year. Nakheel chairman Ali Rashid Lootah said: "Our figures speak for themselves ... and are indicative of the increasing level of investor trust and confidence reposed by them in Nakheel," adding that the rebound in the UAE economy was beneficial for the company. The International Monetary Fund said in 2013 that the UAE's gross domestic product grew by 4.0 percent last year and is expected to grow by 3.9 percent in 2014. "The economic outlook for the United Arab Emirates is positive as the economy has made a steady and strong recovery after the challenges it faced a couple of years back," said Shady Shaher, an analyst with Standard Chartered Bank in Dubai. Earlier in January, Chairman Lootah said Nakheel would pay off this year 1.09 billion U.S. dollars of debt that is due in September 2015 in advance, signaling the company's increased financial strength. Back in December 2009, Nakheel was unable to pay off an Islamic bond with a nominal of 3.52 billion U.S. dollars in the wake of the global financial crisis and had to be bailed out by neighboring oil-rich emirate Abu Dhabi, which is also the capital of the UAE. According to the statement, Nakheel completed interest and profit payments of around 490 million dollars to all lenders up to 2013 and has issued a total trade creditor Islamic bonds of around 1.19 billion dollars to date and has now made cash payments of around 3.35 billion U.S. dollars to various trade creditors and contractors since the start of its restructure.