The breakwater was completed in December 2006, and infrastructure work began in April 2007.^[2] Major construction is not planned to begin until most of the infrastructure work is complete.^[2] Following the financial crisis of 2008, work was suspended and the developers, Nakheel, have confirmed no work would take place on the development in the near future.

Nakheel invited several architects to design one of the buildings for the Palm on a 300,000 m² area. The winning design was a building by Royal Haskoning, who also worked on several other projects in Dubai.^[3] The residential villas to be built and sold by the developer were designed by Serendipity By Design LLC, a firm based in Dubai, United Arab Emirates. The villa types were to be categorised by size and style; 40 series^[4] (the largest), garden villas^[5] and signature villas.^[6]

In the first signs of a slowing Dubai property market, the prices of properties being sold on Palm Jebel Ali were reported to have fallen by 40% in the two months to November 2008, with the fall being attributed to the financial crisis of 2007–2010.^[7]

In 2009, the Dubai Land Department investigated complaints about Nakheel stalling the Palm Jebel Ali project.^[8] Nakheel offered investors alternative homes in other projects but these were inferior properties. In March 2011 Nakheel offered refunds to property investors.^{[citation needed]}

Palm Jebel Ali's developer planned to house more than 250,000 people on it.^[9]

In the original schedule, by 2021, the first phase of four theme parks would have opened on the Crescent. These planned parks, which together would have been called "World of Discovery," will be developed and operated by the Busch Entertainment Corporation. The parks include SeaWorld, Aquatica, Busch Gardens and Discovery Cove. The World of Discovery would have been located at the top of the Crescent, which would form into the shape of an orca (reminiscent of Shamu).^[10][11]

In November 2014, 74 owners of Palm Jebel Ali wrote to the Ruler of Dubai via the Ruler's Court regarding the stalled PJA project.^[12]

On 16 March 2015, Nakheel Chairman Mr. Ali Lootah confirmed that Nakheel remains committed to the project long term but asked "what can I do" for original investors.^[13]

In October 2018, Sanjay Manchanda, CEO of Nakheel, confirmed that there are no immediate plans to restart development of the project.^[14] In July 2021, it was announced that Nakheel planned to restart the project by considering plans involving building villas on the island.^[15]

In April 2022, reports began to circulate that Nakheel had petitioned the Dubai courts and secured a hearing in the absence of investors (as no notice was given) to secure a judgement to formally cancel the Palm Jebel Ali project, which was apparently granted on 19 May 2022. Consequently, 724 previous villa contracts were made null and void as per the judgement, with the aim to return only the original investment, without recognition of any secondary market transaction premium paid, or compensation as per the clause in the Nakheel property contract (Sales Purchase Agreement).^[16] Furthermore, no account was made of any opportunity cost including potential return on investment including even compound interest.

In September 2022, Nakheel announced a rebranding exercise.^[17] Soon after, it revealed its plans to relaunch Palm Jebel Ali.^[18] It has been reported in the Wall Street Journal that high vaccination rates and zero taxes is making Dubai a pandemic boomtown, with many wealthy Russians expected to move there, now access to Western property has become significantly more challenging with International bans and enhanced anti-money laundering laws.^[19]

Recently, it was revealed that Nakheel is nearing completion of $4.6 billion of debt restructuring to relaunch its landmark projects. "Nakheel is paying a lower spread and getting more money for new projects, including Palm Jebel Ali," stated one banker on the deal.^[20] Nakheel plans to build 1,700 villas and 6,000 apartments. This has now been confirmed.^[21]

In a Markets report published by Bloomberg on 17 November 2022, reports began to emerge that Nakheel was attempting to refund original investors of up to nearly twenty years, their original investment back without compensation or interest.^[22] Nakheel, a government-backed developer - chaired by Mohammed Ibrahim Al Shaibani, the managing director of the Emirate's sovereign wealth fund, the Investment Corporation of Dubai - said "it is giving back what it received from the development's original investors and can't help if people bought at higher prices in resale deals over the past two decades." Nakheel has offered voluntary refunds in the past, which some investors have taken, whilst others have remained on the basis of the promise that the development will be built, albeit not in the short term.^[13]

On 31 May 2023, the Dubai ruler His Highness Sheikh Mohammed bin Rashid Al Maktoum (Vice-President and Prime Minister of the UAE and Ruler of Dubai) announced the relaunch of the delayed Palm Jebel Ali project, confirming it would be up to twice the size of Palm Jumeirah adding additional coastline of approximately 110 Km (68.351 miles), including more than 80 hotels.^[23]

The project hopes to house as many as 35,000 families, so is likely to feature luxury mansions and apartments. Roughly a third of its public facilities will be powered by renewable energy. However, “A group of 30 owners have lodged an appeal with a Dubai court asking for a judgment — that officially cancelled (sic) the project and ruled the developer must pay investors only the amount collected from the original buyers — to be voided.”.^[24] It is notable that whilst the 'project' has (apparently) been cancelled, yet is still actually going ahead. the original contracting company Dubai Palm Developers LLC has not been liquidated, with huge assets on its balance sheet, and the original contracts from 2002-2003 are still valid.

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  Palm Jebel Ali on 18 October 2007
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  Palm Jebel Ali on 18 October 2007
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  Palm Jebel Ali on 18 October 2007
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  Palm Jebel Ali on 8 May 2008
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  Palm Jebel Ali on 8 May 2008

• Palm Islands
• The World, another artificial island project in Dubai.
• The Universe
• Dubai Waterfront
• Nakheel, the real estate developer of Palm Islands
• Tourism in Dubai

• Images + Information on Palm Island
• Van Oord dredging and marine contractors
• Jan De Nul Group dredging and marine contractors
• Serendipity by Design architects and master planners