Nakheel-DP World To Split As Consolidation Strategy Plays Out

The announcement that indebted Dubai developer Nakheel will separate from parent company Dubai World to become a state-owned entity is the latest instalment in a saga that has seen the company struggle to deal with its debt obligations in the wake of the Dubai property crash. BMI notes that after it emerged in April that Nakheel would halt property sales, this recent announcement reinforces the view that the company is pursuing consolidation rather than new business, as it seeks to regain the confidence of investors.

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