DUBAI - Real estate giant Nakheel, at the centre of the Dubai debt crisis, reported a 13.4 billion dirhams ($3.64 billion) loss on Wednesday for the first half of 2009 after a large writedown of asset values.

The developer, whose $3.5 billion Islamic bond debt sparked parent Dubai World's move to ask lenders for a temporary payment suspension, said revenues had plunged 78.1% in the six months to June 30 to 1.97 billion dirhams ($537 million) from 9.0 billion dirhams ($2.45 billion) a year earlier.

The developer of the Gulf emirate's extravagant palm-shaped islands took 12.2 billion dirhams in "impairment losses" stemming from a writedown of land values as the property market in Dubai has plunged in the past year.

Also included are projects the company said would be delayed or scaled down.

"The management no longer considers these project costs to be fully recoverable," it said in the six month report.

Nakheel is part of the government-controlled Dubai World group, which late last month shocked global financial markets by asking for a six-month delay in repayments on Nakheel's sukuk bond which matures on December 14.

Dubai's government has said it will not guarantee the debts of Nakheel or Dubai World, which has a total debt estimated at $59 billion.

Source: AFP