A potential IPO by the Dubai government-owned developer Nakheel will have to overcome a lack of investor interest, analysts say.

Reports earlier this week said Nakheel was considering an IPO to shore up its cash position, and that it hoped to raise Dh55 billion (US$15bn) to fund some of its projects that form part of its total portfolio of Dh294bn.

“It will be difficult to find people interested in the IPO – and the valuation won’t be as attractive as it might have been previously,” said Robert McKinnon, the managing director of research at Al Mal Capital. Nakheel is the developer of Dubai’s Palm Islands, iconic developments that are the cornerstone of the emirate’s property market.

The National