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Nakheel chief executive Chris O’Donnell used the GCC conference to explain his company’s plans to repay contractors and overcome the problems faced since the financial crisis hit.
Nakheel was hit hard by the global downturn that has led to many projects in Dubai stalling. At one stage ACE reported that £400million was owned to ACE members alone for work done in Dubai.
Mr O’Donnell presented a very strong paper addressing the reasons for the financial crisis hitting Nakheel, before moving on to the challenges the company now faces.
In order to restore the company’s position it has restructured its pipeline of projects, focusing on key priority areas.
The key message Chris O’Donnell wanted to get across was that the way business was done in the past had to change. Nakheel would be working to rebuild its brand by changing how it worked in the years ahead.
In particular he stressed that the company would focus on its strengths and ensure that it directs resources according to strict assessments of supply and demand.
He also promised that, to make this happen, they would be working hard to strengthen their relationship with their supply chain.
Nakheel have announced that they will repay the money they owe to the supply chain.
The company has announced it has now paid back or is about to pay back 40 percent of all its outstanding debts. The further 60 percent will be covered by a sukuk, or Islamic bond, before the end of December.
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