Established in 2000 under Dubai World and swiftly became a real estate brand in Dubai. In 2009, this real estate firm faced legal hurdles over a record-setting sukuk issuance and the aftermath of the 2010 global financial crisis led to a leadership change, with debt restructuring totaling AED 59 billion ($16 billion) in 2011, transferring ownership to the Government of Dubai.

In 2012, Nakheel underwent academic scrutiny for corporate governance. Sheikh Mohammed bin Rashid Al Maktoum injected US$898 million in 2013 for Palm Jumeirah projects. By 2017, Nakheel reported a $1 billion profit, delivering 1,200 units and starting a $410 million Palm Gateway project.

With changes in leadership again in 2020, with Mohammed Ibrahim Al Shaibani as chairman, Nakheel rebranded in September 2022, reviving frozen projects like Deira Islands. Recently, the Nakheel developer has relaunched the Palm Jebel Ali project, constructing 1,700 villas and 6,000 apartments, and offering buybacks to investors.