Nakheel, the developer behind Dubai's palm-shaped islands, will hand over Dh6 billion (US$1.63bn) worth of Islamic bonds to contractors by the end of next month.
The move is one way in which Nakheel is trying to pay for work already completed on its ambitious developments, which include the three Palm islands and The World, a man-made archipelago off the coast of Dubai in the shape of a map of the globe. Nakheel is also behind several residential projects on the western end of Dubai that contain thousands of villas.
The company stopped paying contractors when the emirate's property bubble burst last year and Nakheel's credit-driven expansion ground to a halt. Dubai World, Nakheel's parent company, subsequently underwent a wholesale restructuring of its business. It reached an agreement earlier this year with its banks to delay repayment of $24.9bn of debt for between five and eight years.
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