Nakheel wins Sao Paolo The World island dispute

By Andy Sambidge
  • Sunday, 7 April 2013 2:39 PM
  • Share via facebook
  • Tweet this
  • Bookmark and Share

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.

Related:

Stories

Nakheel invites Emaar chief to collaborate on The World

Build floating bridge to The World, says Emaar's Alabbar

Second The World island owner hits out at Dubai's Nakheel

Dubai's Nakheel repays more cash to lenders

Dubai's Nakheel launches new Palm project

Galleries
First look: World Islands nightclub

First look: World Islands nightclub

Revealed: the world's top private islands for sale

Revealed: the world's top private islands for sale

Companies

Nakheel - UAE

Also in Real Estate

Dubai’s Palm Jumeirah 'safe' after road collapse, says Nakheel

Dubai's Emaar approves 18.7m new shares

Also in UAE

Haggling over Heathrow will cost the UK

The phony war

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.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Get E-Mail Alerts
Get E-Mail Alerts

Arabian Business Power 500 2013 - Top 5 from Saudi Arabia »

Prince Alwaleed Bin Talal Al Saud  Khalid Al Falih  Fahad Al Mubarak  Haifa Al Mansour  Abdulla Al Zamil 
View complete list
Features & Analysis
Emaar's 'city of the future' explained

Emaar's 'city of the future' explained

The Iraqi city of Erbil is aiming to build on Dubai’s rapid march...

1
Safe as houses

Safe as houses

While the UAE’s property market may be hotting up, Middle Eastern...

1
Opportunity knocks

Opportunity knocks

Government-backed projects for Saudi’s housing markets have been...

Most Popular
Most Discussed
Read all user comments »
Read all user comments »
Read all user comments »