Dubai developer says tribunal has ruled in its favour as firm tries to renege on island contract
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.