$3.65 billion half year loss DUBAI

Dubai World's property company Nakheel lost $3.65bn in the first half year.

Much of the loss is attributed to property write downs, and significantly lower revenue levels.

Nakheel's parent company Dubai World is in negotiations with its bankers and financial advisers to restructure the conglomerate, and re-schedule its debts. The group late last month approached creditors to seek a standstill agreement on debt maturing in the next six months. The group has however continued to meet interest obligations.

Nakheel's half year's loss compares to a $724 million in the corresponding period last year. Aside from the property write downs, a region-wide phenomenan, Nakheel's revenue sank by 78% to $538 million, significantly less than last year's profit.

Aside from the construction of the land-reclaimed palms in the Arabian Sea, Nakheel is also master developer of the huge Jumeriah Village development, south of Dubai. The company had assets at 30th June 2009 of $40.2 billion, and liabilities of $20 billion, including $4.5 billion of long term loans. Much of Nakheel's debt is the subject of Dubai World's negotiations with its bankers.

Adding to Nakheel's woes, one of the centrepiece hotels on its famed Palm Jumeirah has had its opening put back eighteen months. International hotel chaim Kempinski, the operator of the hotel, announced Friday it was putting back the opening of The Emerald Palace because of the oversupply of rooms on the palm and in Dubai generally. The company, in a statement, said it was particularly concerned at the impact of the recently opened Atlantis Hotel (pictured), which it described as a "monstrosity." The Atlantis hotel has more than 1,500 rooms.