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Discuss this article (11 Comments)Dubai Properties chief arrested
by This email address is being protected from spam bots, you need Javascript enabled to view it on Friday, 30 October 2009
UNDER ARREST: Dubai Properties chairman Hashim Al Dabal.
Hashim Al Dabal, chairman of Dubai Properties, has been arrested on suspicion of embezzlement at the company, the emirate’s attorney general confirmed on Friday.
“Mr Al Dabal is accused of abusing his position and earning millions in illegal profit,” Attorney General Essam Essa al-Humaidan said in a phone interview.
“We are questioning him almost daily and Mr Al Dabal indicated he is ready to answer questions without having a lawyer present.”
Last year, Dubai began an investigation into corruption in real estate companies, which benefited from surging demand after foreigners were allowed to buy property for the first time.
Several officials were arrested, including Zack Shahin, former chief executive officer of the emirates’ second-biggest property developer, Deyaar Development, and Adel al-Shirawi, former CEO of mortgage lender Tamweel.
Bloomberg calls to Dubai Properties offices seeking comment weren’t answered on Friday.
Al Dabal was arrested about 10 days ago, the attorney general said. No arrangement date has been set and the investigation is continuing, he said. Under Dubai law, he can be held for 21 days, after which he must appear before a judge.
Al Dabal is being held at a detention centre in Dubai police headquarters, al-Humaidan said.
“We’re still trying to determine the extent of Al Dabal’s misconduct,” he said. “When the investigation is complete, all details will be announced.”
The investigation is being “conducted swiftly and, God willing, it will be concluded soon,” he said, adding that Al Dabal will be allowed to meet with a lawyer as soon as he appoints one and his family is allowed to visit him.
Dubai Properties is a unit of Dubai Holding, a group owned by the emirate’s ruler, Sheikh Mohammed Bin Rashid Al Maktoum. In August, Al Dabal was appointed as executive chairman at Dubai Holding’s newly created Property Vertical.
Emaar Properties, the UAE's biggest real-estate developer, said in June it was in talks to combine with Dubai Properties and two other state-controlled competitors, Sama Dubai and Tatweer.
The move is aimed at controlling the supply of new buildings amid a glut of homes that drove property prices in Dubai 50 percent lower.
Dubai Properties built Jumeirah Beach Residence, a 1.7km (1.05-mile) waterfront development that includes 36 residential towers, four hotels and retail space.
Emarat Al Youm earlier reported that Al Dabal had been referred for prosecution on suspicion of financial misconduct. It cited Yasir Amerey, the head of the financial supervision department at the Ruler’s Court.
Dubai Holding appointed Ahmad bin Byat as acting chairman of its real estate company, Zawya Dow Jones reported on Thursday, citing the company.
“Dubai Holding and all of its business entities are committed to the highest levels of corporate governance. As such we fully support the Dubai government’s initiatives to uphold these standards,” Zawya Dow Jones quoted the company as saying in a statement.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
escrow
Posted by His Excellency Dr Paul, Dubai, UAE on Tuesday 3 November 2009 at 12:24 UAE time
If you are having to ask about the safety of money in escrow accounts then I think you answer your own question.
Escrow should see funds held by a neutral party. I suspect in the future that there will be a move by investors in the UAE to demand escrow agreements are made offshore in jurisdictions such as the Caymans, BVI, etc that use more established and transparent law and have more experience of financial dealings. With so many developers here owned by the government, it is impossible for escrow systems enacted within the UAE to really be seen to be neutral, regardless of whether they are or not.
Posted by His Excellency Dr Paul, Dubai, UAE on Tuesday 3 November 2009 at 12:24 UAE time
If you are having to ask about the safety of money in escrow accounts then I think you answer your own question.
Escrow should see funds held by a neutral party. I suspect in the future that there will be a move by investors in the UAE to demand escrow agreements are made offshore in jurisdictions such as the Caymans, BVI, etc that use more established and transparent law and have more experience of financial dealings. With so many developers here owned by the government, it is impossible for escrow systems enacted within the UAE to really be seen to be neutral, regardless of whether they are or not.
escrow corruption
Posted by kenny timmons, co.meath, Ireland on Monday 2 November 2009 at 00:20 UAE time
Yes most of my money was paid before escrow was set up, but the law is the developer has to move all this money into the new escrow accounts. Its a real mess.......
Posted by kenny timmons, co.meath, Ireland on Monday 2 November 2009 at 00:20 UAE time
Yes most of my money was paid before escrow was set up, but the law is the developer has to move all this money into the new escrow accounts. Its a real mess.......
Widen the net.....
Posted by Annabel, Dubai, UAE on Sunday 1 November 2009 at 16:08 UAE time
It is good to see that finally people who have done very very well financially out of the property boom here in Dubai are being put under the scrutiny of the law. I think that to make Dubai transparent and attractive to investors again will take more of this action from the Government. Those who are not guilty have nothing to fear do they not??????
Posted by Annabel, Dubai, UAE on Sunday 1 November 2009 at 16:08 UAE time
It is good to see that finally people who have done very very well financially out of the property boom here in Dubai are being put under the scrutiny of the law. I think that to make Dubai transparent and attractive to investors again will take more of this action from the Government. Those who are not guilty have nothing to fear do they not??????
Investors' Money in Escrow Accounts ? Part 2
Posted by Amir, Dubai, UAE on Sunday 1 November 2009 at 15:42 UAE time
As I said in my earlier comment, understandably banks are happy about keeping our money in their banks as long as possible. On the other hand, the developers are either a bit hopeful that they may jump start their projects (very unlikely in most cases) or they have withdrawn money from these escrow accounts and don't want this to be publicized. On the other hand, master developers are also want to deal with this issue (of canceling the projects) later the better. I believe that a solution would be to have master developers to cancel these unbuilt master projects and then the developers should give back the investors' money in full and immediately. Master developers know that unless they do their commitments (i.e. building infrastructure, etc), developers will not start construction. One good example is Nakheel, the master developer of Dubai Waterfront. Nakheel should officially cancel the entire Waterfront project and investors such as yours truly who had invested in projects such as Zero Five Zero somehow miraculously get our money back from the developer of this property (Profile Properties) which have not been touched so far and it never will be. These are the same guys with access to our funds in escrow accounts and now we have understood that they could actually withdraw from these accounts ! Can of worms !!
Posted by Amir, Dubai, UAE on Sunday 1 November 2009 at 15:42 UAE time
As I said in my earlier comment, understandably banks are happy about keeping our money in their banks as long as possible. On the other hand, the developers are either a bit hopeful that they may jump start their projects (very unlikely in most cases) or they have withdrawn money from these escrow accounts and don't want this to be publicized. On the other hand, master developers are also want to deal with this issue (of canceling the projects) later the better. I believe that a solution would be to have master developers to cancel these unbuilt master projects and then the developers should give back the investors' money in full and immediately. Master developers know that unless they do their commitments (i.e. building infrastructure, etc), developers will not start construction. One good example is Nakheel, the master developer of Dubai Waterfront. Nakheel should officially cancel the entire Waterfront project and investors such as yours truly who had invested in projects such as Zero Five Zero somehow miraculously get our money back from the developer of this property (Profile Properties) which have not been touched so far and it never will be. These are the same guys with access to our funds in escrow accounts and now we have understood that they could actually withdraw from these accounts ! Can of worms !!
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