Bulk works for Palm Jabal Ali began in October 2002 and was completed by early 2008. A total of 8 islands were created. In 2009, construction work began on the archipelago. To the west of the Palm-Jabal-Ali islands, in the adjacent waters, it is planned to create a much larger island-city of Dubai-Waterfront. Thus, Palm Jabal Ali will eventually become one of the eastern regions of the latter.
In 2011, due to low demand for real estate, most of the construction work on Palm Jabal Ali was suspended.