A dispute has broken out between the government of Umm Al Quwain and Sharjah developer Tameer Holding over the alleged cancellation of the emirate’s Al Salam City mega-project, with both parties blaming each other for the debacle.
UAE daily Emirates Business 24/7 reported last week the $8.16 billion project had been shelved because the government did not have enough resources to provide the development with enough water and electricity, citing an unnamed real estate agent.
However, Umm Al Quwain on Saturday hit back at the accusations, claiming they were “mere lies that aim to impair the emirate’s reputation” and attributing them to Tameer.
“The allegations by Tameer are merely an attempt to evade their contractual commitments, and here we should indicate that the government insists on dealing with the project in a positive manner that would guarantee the success of the project and rights of beneficiaries,” the government said in a statement.
“The issue of water and electricity taken as an excuse by the other two partners to justify the delay in executing their contractual commitments are in their commitments under the company establishment contract.”
The government denied the project has been cancelled, stating that it has merely been delayed.
The government said it was not contractually responsible for supplying water and electricity to the development, claiming the real reason for the project’s delay was “slackness by the other partners in executing their contractual commitments”.
Al Salam City was launched in July 2005 by the government in partnership with Tameer and Ahmed bin Sulaiman Al Rajhi.
The parties established the Umm Al Quwain Real Estate Development Company to build the city. Around 1,000 buildings are planned for the city, which will house at least half a million residents.
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