Government-owned Nakheel, developer of Dubai’s palm-shaped islands, has adequate funds for its projects but has no plans to launch new developments as sales are slowing, its chief executive said on Monday.

Chris O’Donnell told reporters the firm did not see a need for further layoffs after it announced plans to reduce its workforce by 15 percent last month.

Nakheel is one of a number of Dubai developers that have cut staff, scaled back and reviewed projects as the global financial crisis hits the once-booming real estate sector of the Gulf emirate.

O’Donnell said he expected better market conditions in 2009.

“The banking system is starting to free up with the liquidity that has gone into the market and I think you’ll find in 2009 we will see a lot more liquidity coming into the market,” he said.

“So basically we are matching supply and demand and that is how we are managing our projects.”

O’Donnell said Nakheel had not made any sales in the last couple of months and the firm’s first sukuk, worth around $3.6 billion would come up for renewal in November 2009.

He told Reuters earlier this month Nakheel is not in discussions over the sale of the company and that a public listing for the firm was still an option, but there was no time frame.

Omniyat Properties said late last month it had cut 69 jobs, while Damac Holding, the emirate’s largest property developer, said it would cut 200 jobs.

Emaar Properties EMAR.DU could make job cuts, its chairman Mohamed Ali Alabbar said last month.

Dubai-based developer Meraas said early this month it would review a $95 billion property project in the emirate which was launched at a property exhibition in October.

Source: Reuters

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