Nakheel said Tuesday it signed an agreement with the UAE's leading banks to secure Dh17 billion ($4.63 billion) in financing to drive a new phase of growth in the coming years.

The Dubai-based state-owned developer developing Palm Jumeirah said it signed the agreement with a syndicate of three banks, including Mashreq Bank, Dubai Islamic Bank and Emirates NBD, for Dh11 billion in refinancing and Dh6 billion in additional funds for new projects in the red-hot real estate market.

In a statement, Nakheel said the new funds will support its development strategy, including Dubai Island and other waterfront projects.

Nakheel, which successfully completed a massive debt restructuring program, is cashing in on rising demand for coastal properties in the wake of the coronavirus pandemic.

"These transactions will further strengthen the company's financial position and reflect the banking institutions' confidence in the company's new strategic focus," according to a Nakheel spokesperson.

The spokesperson said Dubai's real estate sector is recording strong growth, driven by regulatory reforms such as the issuance of long-term visas and a buoyant economy supported by strong growth in the retail, leisure and hospitality sectors.

"As a pioneering Dubai-based master developer with high-performing assets in these core economic sectors, we are entering a new phase of growth that puts our customers at the heart of everything we do.

This new era for Nakheel will be defined by our commitment to developing exceptional communities, enhancing customer-driven services and delivering value at all touch points," the spokesperson said.

Focus on Dubai Islands

Nakheel is planning to develop another artificial island called Dubai Islands, formerly known as Deira Islands, comprising five islands with a total area of 17 square kilometers.

In September, the master developer said it was also revisiting plans for the Palm Jebel Ali Islands, a project that has been dormant since 2009.

"Nakheel has matured a lot over the years. It is a completely different company from the adventurous one it was in 2008," said Nasser Al Shaikh, a former finance minister who helped Dubai weather the 2009 debt crisis.

"This is evident in the utilization of new facilities, much of which will be used to restructure and optimize current debt, leaving enough money to launch new, highly anticipated developments such as the Dubai Islands and the Palm Jebel Ali," Al Shaikh said.

Dubai is the financial and tourism hub of the Middle East, and its real estate market began to recover after the coronavirus pandemic early last year, as the government kept the economy and airport mostly open.