Dubai developer Nakheel World, known for building huge manmade islands during the emirate’s property boom, will on Monday face a land claim of around AED100m ($27m) over its failed Mina Rashid project.
The case, to be heard at the Dubai World Tribunal at DIFC Courts, relates to the AED446m sale of a large plot of land to Saudi Arabian developer Al Falak in 2008. Al Falak pursued legal action against Nakheel when the Mina Rashid master development, which was intended to house 225,000 residents, failed to materialise.
Al Falak, which intended to develop a large building on the plot, is seeking about AED100m for money it paid towards the land plus legal fees and interest.
Joe Durkin, a partner at Davison & Co which is representing Al Falak, said he expected a judgement within a few hours. “It should be pretty swift. Unlike other tribunals which can take a few days, I think we’ll be finished today,” he told Arabian Business.
Nakheel World is a separate entity to Nakheel PJSC, which was carved out of Dubai World during the emirate’s debt crisis and taken under direct control of the government.
The case is being heard by Sir John Chadwick, Sir Antony Evans and Sir David Steele.
Announced at the height of Dubai’s property boom, the Mina Rashid development was to 17.5 km of waterfront promenade and a projected population of 225,000 people, as well as a mass transit and water taxi system that will provide links to the Dubai Metro, Dubai Maritime City and Palm Deira.
The port development was one of a number of high-profile Nakheel projects that went down the pan amid Dubai’s debt crisis, along with manmade islands Palm Jebel Ali, Palm Deira and The World.
* Nakheel no longer responds to media enquiries from Arabian Business, nor does it grant this publication access to any of its media events or announcements.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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