Nakheel wins Sao Paolo The World island dispute

Sunday, 7 April 2013 2:39 PM

Nakheel on Sunday said that it has won a legal case against a development company which was seeking to renege on an agreement to buy an island on The World project.

The Dubai developer said in a statement that a tribunal had ruled in favour of Nakheel, The World and others in the case against Sao Paolo Development Ltd and Diamond Developers.

Nakheel said Sao Paulo Development Ltd had sought to renege on its commitment to purchase The World island of Sao Paulo.

It added that the Dubai World Tribunal held that the "reservation contract for The World island of Sao Paulo was enforceable and binding".

The statement said Sao Paolo Development Ltd was ordered to pay The World AED127.6m ($34.7m) to cover outstanding instalments owed on the island and accrued delay fees.

The tribunal also ordered the other claimant, Diamond Developers, to pay AED10.9m to Nakheel's Jumeirah Village subsidiary.

Development of The World has stalled in the wake of the global financial crisis, with all but one of the island owners completing construction.

Owners have told Arabian Business they have been unable to develop the islands due to a lack of vital infrastructure promised by Nakheel.

Nakheel has previously said that building work is the responsibility of the owners.

Follow @ArabianBusiness

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

Posted by: Red Snappa Monday, 8 April 2013 9:14 PM[UAE] - Ireland

Since when is a reservation actually a contract, they must have signed the next best thing to a sales and purchase agreement, also Diamond Developers must have been trying to transfer, their deposit on Sao Paolo to a Jumeirah Islands plot.

The bottom line even less likelihood of anything getting built longer term and a strong deterrent to future investors. A patch of compacted sand out in the Gulf, with no geological fundamentals to keep it in shape. No central infrastructure and services access point in the overall group of islands. Attractive prospect

Greek islands I can understand, they don't generally decompose over time!

Reply to this comment.

Posted by: Saudi Engineer Monday, 8 April 2013 3:22 PM[UAE] - Saudi Arabai

WT, I guess that's your Dubai legal system for you...

Reply to this comment.

Posted by: What The!? Monday, 8 April 2013 8:52 AM[UAE] - UAE

I can't believe a court would enforce payments into an obviously stalled / shelved project!

Reply to this comment.

Posted by: Glen Monday, 8 April 2013 8:51 AM[UAE] - United Arab Emirates

Yet another glaring inacurracy of your reporting, and if it was taken from another agency a glaring example of the lack of editorial control.

The article states;

"Development of The World has stalled in the wake of the global financial crisis, with all but one of the island owners completing construction".

It should read "with only one of the island owners completing construction"

Posted by: Realty check Tuesday, 9 April 2013 10:10 AM[UAE] - UAE

Well spotted, Glen! It seems 'none but one' and 'all but one' mean the same to AB.

Reply to this comment.

Arabian Business Power 500 2013 - Top 5 from Kuwait »


View complete list

Photo Galleries
Videos

26
Dubai nightclub bans patrons wearing fur

@ Mark Renton, people are just expressing their views so there is no need for you or anyone to feel offended and take it too personal. Nobody has any problem... more
Monday, 10 March 2014 7:10 PM - Rashed
10
Gulf airlines defend female cabin crew policies

"All this was a big sensational (effort) to target my country because of 2022, saying people have no human rights. It is not true,"

Really?!... more
Sunday, 9 March 2014 11:03 AM - Peter
7
Nakheel boss blames customers for delays

"We gave them alternatives to their investments"...the alternative was...'take it or leave it"? more
Monday, 10 March 2014 2:40 PM - Jonnie Millar

Read all user comments »

26
Dubai nightclub bans patrons wearing fur

@ Mark Renton, people are just expressing their views so there is no need for you or anyone to feel offended and take it too personal. Nobody has any problem... more
Monday, 10 March 2014 7:10 PM - Rashed
14
Arab prince offers $1.6m for dinner with Claudia Schiffer

I think she has no contracts and desperately needs a job, guys, any waitress or entertainer vacancy in a local nightclub for this old woman? more
Monday, 10 March 2014 7:39 PM - Fadi
10
Gulf airlines defend female cabin crew policies

"All this was a big sensational (effort) to target my country because of 2022, saying people have no human rights. It is not true,"

Really?!... more
Sunday, 9 March 2014 11:03 AM - Peter

Read all user comments »

39
Bahrain to ban alcohol at airport, on flights

Never be self destructive and don't delude yourselves because the line between what is permissible and what is forbidden, what is moral and what is immoral... more
Friday, 21 February 2014 11:55 AM - Karam
26
Dubai nightclub bans patrons wearing fur

@ Mark Renton, people are just expressing their views so there is no need for you or anyone to feel offended and take it too personal. Nobody has any problem... more
Monday, 10 March 2014 7:10 PM - Rashed
25
Plan to lower legal driving age in UAE wins backing

I'm yet to see a law that the majority of expats won't bash as if it were to bring the end of the world. Come on, people! This country is younger than... more
Friday, 21 February 2014 3:00 PM - iKnow

Read all user comments »

Log in Not registered? Register now!

Retrieve password form

Services:

Nakheel wins Sao Paolo The World island dispute

Related:

Stories

Galleries

Companies

Also in Real Estate

Also in UAE

Join the Discussion

Further reading

Features & Analysis

Most Popular

Most Discussed