Ex Dubai World exec beats Nakheel in villa suit

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(Image for illustrative purposes)

(Image for illustrative purposes)

A former board member of Dubai World has won his legal battle with indebted developer Nakheel after he was denied a 15 percent ‘staff discount’ on a deal involving two villas on Palm Jumeirah.

According to documents issued to the Dubai World Tribunal on March 23, Ahmed Butti Ahmed Al Muhairi planned to purchase the units on the Palm and sought to use a 15 percent staff discount available to Nakheel employees. At the time, developer Nakheel was part of the Dubai World conglomerate.

His request was refused by Nakheel in a letter from the developer’s former CEO Chris O’Donnell, issued nearly two months after Al Muhairi was replaced as a board member of Dubai World as part of a reshuffle in December 2010, court documents show.

Al Muhairi, who is now director general of Dubai Customs this week won his legal battle against the now government-owned master developer and was awarded ownership of the two villas on the manmade development off the Dubai coast, which was built by Nakheel.

In a statement issued by his legal team Davidson & Co, Al Muhairi said “he is pleased with the result and that it illustrates the effectiveness of the Dubai World Tribunal in handling disputes”.

Nakheel, which overstretched itself building islands in the shape of palms and other ambitious projects, was part of state-owned conglomerate Dubai World, before its ownership was transferred to be under the direct control of the government of Dubai.

Dubai World recently completed a US$25bn restructuring with banks.

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Posted by: RBH

You deserve it, Nakheel. Keep losing!!!

Posted by: Bugle

Quite frankly this case doesn't help investors in Nakheel properties who have lost their money. This is a case to do with an individual and his rights as an employee. The defendant happens to be Nakheel.

Posted by: George John

Nakheel & other property dealers are not fulfilling their responsibilities towards the investors. The expatriate investors does not know what to do or they want to avoid the disputes. What ever the developers promises are not been done.
I book a three bedroom flat from Al Mazaya real estate on 2007 and they promised the flat will handed over on November 2009 and still the project is not completed and I already paid 90% of the contract value. They are sending letters for the payment & saying that they will terminate the contract. I am still not aware when I am going to get the flat. I am only getting legal notices instead of the flat. Every year I am spending 150,000.00/year for my accomodation

Posted by: Red Snappa

The gentleman in question, whilst he should be congratulated on winning his case, is probably of both the status and high net worth able to see this action through to its conclusion, he is also a UAE citizen.

There are any number of misled foreign property investors out there, still to be in a financial position to take their case legal! Allowing multi-plaintiff class actions would be a giant step forward for property purchasing mankind or even a lower order tribunal at DIFC to deal with matters Nakheel at a more grassroots level.

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