Nakheel faces $27m land claim

  • Share via facebook
  • Tweet this
  • Bookmark and Share

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.

Related:
Topics
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trump casino resort business files for bankruptcy

Trump casino resort business files for bankruptcy

The Donald founded the companies but is now suing them to have...

Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

3
Most Popular
Most Discussed
  • 14
    ‘How my Dubai mortgage landed me in a police cell’

    I live in the UAE for 10 years. I have had friends flee the country for similar cases. Since no change occurred in the banking system, incidents like this... more

    Thursday, 30 October 2014 9:06 PM - Awi
  • 9
    Do you actually own your house?

    This is unbelievable from Nakheel. In a case where we want landscape our garden with some tiles and grass costing around 12500, Nakheel is demanding a... more

    Thursday, 30 October 2014 9:06 PM - skp
  • 3
    Most Dubai rents continue to fall in Q3, says regulator

    I am curious to see what happens when all those who bought in this mini-boom phase of 2013 come out to sell. Furthermore I am curious to see the effects... more

    Thursday, 30 October 2014 12:49 PM - LordLands