Nakheel damaging Dubai’s reputation “two million times for a few dirhams” – Al Habtoor - Real Estate

Sunday, 26 February 2012 12:46 PM

Nakheel’s decision to charge for beach access on its flagship Palm Jumeirah project is “dangerous” and “unacceptable”, according to leading UAE businessman Khalaf Al Habtoor.

In an interview with Arabian Business on Sunday, Habtoor strongly hit out at Nakheel, claiming the decision would never have been approved by the Dubai government.

“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,” he added.

Habtoor, who operates a number of residential and commercial buildings in Dubai, said he would never amend a contract between his company and its tenants. “Our tenants if I have an agreement with them I would never, ever amend it, it’s not fair.”

Dubai’s real estate watchdog on February 15 said the ongoing dispute between Shoreline residents and developer Nakheel over plans to charge up to AED5,000 ($1,360) to access the beach, pools and gyms had been resolved.

“It’s already solved; this is what they have told me. The owners' association itself, they are dealing with Nakheel now,” Marwan bin Ghalita, CEO of RERA, told Arabian Business.

Five homeowners associations on the luxury development have been RERA approved, allowing them to appoint their own manager for the communal areas. Residents said they expected the remaining associations to be approved within two weeks.

Nakheel in December distributed leaflets to the Palm Jumeirah residents warning it planned to start charging residents. In the interim, the developer banned residents with outstanding service fees from using the beach, pools and gyms by rolling out a temporary security card system.

Nakheel said the lockout would be extended to Shoreline’s main buildings and car parks from January 15 - effectively barring residents from accessing their homes - but homeowners said the deadline had passed without incident.

The company said the lockout is in response to the high number of homeowners defaulting on service charges. Homeowners on Shoreline have AED57m outstanding in service fees, down from AED72m at the start of Dec, Nakheel said on January 3.

The Al Habtoor Group is a holding company for businesses ranging from construction, hospitality, automotive and real estate, run by Habtoor. In 2007, Habtoor sold a 45 percent stake to Australia’s Leighton Holding for $707m.

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Posted by: MR K Thursday, 26 April 2012 6:30 PM[UAE] - UAE

I agree completely; Nakheel?s practices and antics have hurt the Dubai housing market. Investors no longer trust large developers particularly Nakheel as they continue to misuse their power in the city without any consideration on the long term impact of their actions?.there needs to be more transparency on how contracts are being honoured.

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Posted by: vZWuPyiWpFgOeaLCyF Wednesday, 14 March 2012 12:58 PM[UAE] - xBJnFahiUtRPqhtkx

Dubai and Bahrain will be a little cool by October as it is nnraieg cool season. You can travel by Air Arabia (Bahrain-Sharjah). Sharjah is not that far from Dubai and you can find cabs easily. Rates vary by availability and timing but you can say around 90-200USD. Another option is Bahrain Air (Bahrain-Dubai). Today's rates are at approx. 150USD.You need to have a sponsor to be able to visit Dubai since they allow vis on-arrival services only to those with special designations and managers. You would not want to take buses too as it is a longer route and probably even more expensive than flying.

Posted by: Hamish Thursday, 22 March 2012 8:19 AM[UAE] - Dubai

Dear Mr vZWuPyiWpFgOeaLCyF

Thank you for your contribution. Although I think the facts you state appear to be relatively accurate and informative, they have slightly limited use in moving the argument forward on how much Damage Nakheel has done recently to the global reputation of Dubai and Dubai property.

Unless of course, Mr vZWuPyiWpFgOeaLCyF, you are putting forward an incredibly clever allegory for the ineffective maintenance and customer service provided by Nakheel at the Palm Shoreline Apartments in Dubai. In the past, I have called up Nakheel for a plumbing problem and had electricians, managers, even a property salesman turn up, but absolutely no plumbers. Your post above is probably equally useful and applicable to this issue, as Nakheel's typical customer service is useful and applicable to its lucky residents.

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Posted by: Benny Saturday, 10 March 2012 11:58 AM[UAE] - UAE

Mr Al Habtoor just expressed most UAE citizens opinion about developers. Mr Al Habtoor is a professional that uses his own money and therfore cares about customers satisfaction. Most guys working for developers dont care about the company because they don't risk their own money but the investors money

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Posted by: Mat Wednesday, 29 February 2012 2:28 PM[UAE] - Switzerland

I do not understand that the ruler of Dubai is tolerating that government companies don't respect the law. Developers were the first to breach contracts - investors' obligation was to pay money and the developers' obligation was to deliver. Still today we can see a lot of developments unfinished (JBR still has no beach park and gyms) and the services are way below standard. We don't have to be surprised when owners don't pay their service charges. They have to live in unfinished projects with very low services and the only thing which is efficient is the delivery of the service charge invoice.

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Posted by: Maria J Tuesday, 28 February 2012 10:51 PM[UAE] - Dubai

Mr. Habtoor, thank you for your comments but if you were a Shoreline Owner/Tenant you would appreciate the recent changes that have been implemented which are only fair to the Owners that actually pay their services charges to maintain the facilities instead of the majority that have failed or choose to ignore to meet their obligation.

I hope I can have access the Habtoor Hotel beach for free!!!!!

Posted by: True Maria Wednesday, 29 February 2012 2:32 PM[UAE] - Dubai

Thats not me, i am far away from Habtoor Hotel and smart enough to stay away from properties.
Sounds like that new guy who came with load of promises to reduce service charges recently.

Posted by: MikeDeLonghi Wednesday, 29 February 2012 11:27 AM[UAE] - Saudi Arabia

Please, could the Nakheel employees writing reader comments 'under cover' please come clean and declare your interest. I believe it is clear to everyone that the bulk of the 'smart defaulters' are merely refusing to pay for services not rendered by Nakheel, a company notorious for over promising and under delivering. Salutations to Mr. Habtoor, a true Emirati that has seen the world and acknowledged that UAE must adapt and develop rather than abusing words such as 'loyalty' and 'patriotism' as an excuse for poor practices.

Posted by: gordon Wednesday, 29 February 2012 8:52 AM[UAE] - dubai

that is a strange remark.
I assume that if you want Habtoor beach to be free for everyone, then you also want the Shoreline beach to be free of everyone?

Posted by: charles Wednesday, 29 February 2012 8:49 AM[UAE] - uae

do you live in the Habtoor Hotel Maria?
If not, your comment is nonsensical.

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Nakheel damaging Dubai’s reputation “two million times for a few dirhams” – Al Habtoor

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