Court rules against indebted developer for denying discount on villa to Dubai World exec
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.