The duo had planned dollar-denominated Sukuk and would have had to pay a yield premium to attract enough investors due to concerns about Dubai's property price slide as well as emerging market volatility.
Monday 21, January 2019 BY KUDAKWASHE MUZORIWA
Dubai-based property developers, Emaar Properties and have put on hold plans to issue US dollar-denominated bonds, amid a real estate downturn and instability in emerging markets.
Emaar, the developer of Burj Khalifa stated that it had put on hold a planned bond issue due to rising interest rates.
Additionally, Nakheel, the developer of Palm Jumeirah was one of the worst hit by Dubai's 2009-2010 real estate crash, forcing it into a massive debt restructuring and has not issued public debt since 2009.
Residential prices dropped six to 10 per cent in 2018 and are expected to drop five to 10 per cent more this year, added Savills.
Dubai property prices have dropped since a mid-2014 peak, hurt by a period of weak oil prices and muted sales although the slide has not come close to the more than 50 per cent plunge seen in 2009-2010, reported Reuters.