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Mr Ali Rashid Ahmed Lootah, the chairman of Nakheel, has reassured ACE that outstanding debts will be paid to suppliers following their corporate restructure.
In an open and encouraging meeting this week between Nelson Ogunshakin OBE, ACE chief executive, and Nakheel, Mr Lootah confirmed that 40% of their outstanding debt had been paid or is about to be paid. The balance of 60% will be issued via a sukuk, or Islamic bond, before the end of December.
Nelson Ogunshakin said: “ACE welcomes this emerging constructive dialogue between UK Consultancy and engineering industry and Nakheel. Mr Lootah’s intervention in Nakheel since his appointment in April this year has so far resulted in a positive outcome on the situation in Dubai.”
Mr Lootah stated that Nakheel is here to stay. His priority is completion of the ongoing restructuring and rebuilding confidence in the market. Mr Lootah assured ACE that Nakheel is committed to honour the 60% Islamic bond at the end of the five year maturity stage.
He further confirmed that the way in which this situation has been resolved could prove to be a positive model for other major developers who have experienced similar challenges.
Mr Lootah met a delegation led by Nelson Ogunshakin, and the chair of ACE’s Middle East Group, Ian Clarke, in Dubai.
Nelson Ogunshakin said: “The fact that a complete review of the business has taken place, and that priority is now given to projects which are market-driven, demonstrates leadership and clear strategic direction for the future. ACE’s campaign for an equitable resolution approach to resolving this situation reinforces the value to all of constructive engagement between industry and clients.
“The news that outstanding debts will be paid in full will help build confidence among UK-based professional consultancy and engineering companies as Nakheel refocuses its business portfolio and moves forward with its key projects.”
Mr Lootah recognised the role of ACE as a key platform to connect to professionals in the industry, and agreed in principle to maintain a regular dialogue in future. This will ensure that the supply chain is fully aware of the challenges and opportunities to work with Nakheel both now and the in the future.
-ENDS-
For press information please contact Gavin Pearson on 020 7227 1892 or at gpearson@acenet.co.uk
Notes to editors
Photos are available on request.
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