Nakheel bans entire building from Palm Jumeirah beaches

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Nakheel has banned every single resident living in Palm Jumeirah’s Building 18 (Jash Hamad) from using its beaches and gyms - despite most having paid their service charges in full.

The move comes after a dispute with Vakson Real Estate, which bought the building from Nakheel, and bills owners directly for service fees, through Open Eye Community Owners Association Management Services.

Last April all owners were told to pay AED12.5 ($3.4) per square foot in service fees for the year ahead, with cheques made out directly to Open Eye. Unlike other properties on the Shoreline, the developer Vakson pays Nakheel each year a portion of the monies raised to guarantee residents access to the beach and gyms. 

Arabian Business understands that on January 26, Nakheel asked Vakson to make its contribution towards the service charges, totaling AED520,000, in one single payment, as opposed or previous years when it paid in four cheques. Vakson has declined and is believed to be negotiating a new payment structure with the government master developer. However, Nakheel has indefinitely banned all residents from using the beaches or gyms until the dispute is resolved.

“The crazy thing is most of us living here have paid our service charges in full, right up to May this year. We have every right to use the beaches and gyms but are being blocked. We are caught in the middle, it’s ridiculous,” one resident said.

Nakheel first started banning residents from using its beaches in December 2011, in a long-running dispute over service fees. UAE business legend Khalaf Al Habtoor told Arabian Bhsiness the move by Nakheel was “unacceptable”.

He said: “It was 100 percent [damaging] and unacceptable. If I am buying a house and using the beach and later told I have to pay for the beach, this is abnormal. This is damaging the reputation of my country,” he said.

“I am 100 percent sure that the higher authorities were not aware of such a thing because they would not have accepted it…. They would never have [agreed to] it but some people try to show they are making money for the government – they are damaging its reputation two million times [over] for a few dirhams.”

* Nakheel no longer responds to media enquiries from Arabian Business, nor does it grant Arabian Business access to any of its media events or announcements.

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Posted by: Solomon Northup

The sooner all expats realize that they are only here to provide a service the easier it will be for people to understand how things work. Do not fall into the trap of believing that you have a voice as it isn't in the overall public interest and hence you can bleat all you like, it will fall on deaf ears.

I am simply here, like must of the rest of us, to provide assistance to build the UAE into a global hub and as soon as that is complete there will be no need for us anymore.

I advise that you get with the system and you will be a little more at ease with yourself. Otherwise you risk turning into Mr. Angry from the Emirates and your life will be peppered with disappointment and frustration.

Remember, we are only here to provide a service.......

Posted by: Mark Renton

Solomon, this isn't about why anyone is here, it's about getting what you paid for. Tenants and homeowners are caught up in a dispute between Vakson and Nakheel through no fault of their own.

Regarding your comment about no longer being needed once Dubai is a "global hub" as you put it, I think it will be a long time, if ever, before Dubai is "complete". I am also curious as to what you think the purpose of being a global hub it, if it's not to attract foreign businesspeople? Unless something in the region of 1.5M Emiratis magically appear in Dubai overnight it's going to leave an awful lot of empty properties when all the expats go.....

Posted by: Buddy

Dear Sandy,

It is correct what you saying. So buyer's must be pretty desperate, ignorant or un-educated to be willing to purchase property under the prevailing conditions.

Posted by: cosmic

All this for a fake beach on a fake island. As I type this from my apartment in Puckett overlooking the beach which I can go on as whenever I want.

Posted by: SAA

Seems like Nakheel will never change.

Posted by: zen

Doesn't Nakheel & Emaar belong to the Government? So why should the Government intervene? As long as they are making money they do not care about anyone else.
Sandy, yes the big guys are Nakheel & Emaar. But now even Al-Futtaim have come into the market. Check them out.

Posted by: Telcoguy

Good question, let see which insightful answers we get from the usual suspects

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