Jebel Ali Village was built in 1977 to house some of the few expatriates living in Dubai at the time. The National reports that it was originally built for British and Dutch staff of the nearby Jebel Ali Port, and that its hill was where Sheikh Rashid announced plans for the port in the early 1970s. The village consisted of villas with large gardens around a hill, with a mosque, a primary school, a small shopping centre and a social club.
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In 2007 Nakheel announced that it would tear down the villas and build a new community under the same name, and gave tenants a year's notice; the last of the village's 300 families left in August 2008. The project was then cancelled in the property crash and the villas stood empty. Nakheel later chose to refurbish the existing villas, issuing tenders in 2012, with keys to the first refurbished homes due in August 2013.
Residents were given 12 months' notice to leave, and on 2 November 2021 Nakheel announced a plan to turn the village into a gated hillside community of villas covering 80 hectares in three clusters. Four- and five-bedroom villas went on sale on 7 November 2021, and three- and four-bedroom townhouses followed in March 2022. The original 290 homes were demolished in 2022. In April 2023 Nakheel named iBuild Construction as contractor for the villas and United Engineering Construction Co. (UNEC) for the townhouses.
On 17 August 2026 Nakheel, by then part of Dubai Holding Real Estate, announced that it had begun handing over 892 homes at Jebel Ali Village, which it expects to house about 5,500 residents. Nakheel lists parks, walking and cycling routes, sports facilities, play areas and a community pond, with swimming pools in each residential cluster; a community centre with retail, a clubhouse, a gym, padel courts and event lawns are planned for a later stage.