Nakheel sued by former Dubai World board member

Dubai Customs head sues after ban on using 15% staff discount to buy plots on Palm Jumeirah
Nakheel sued by former Dubai World board member
Nakheel, which overstretched itself building islands in the shape of palms and other ambitious projects, is part of state-owned conglomerate Dubai World
By Shane McGinley
Sun 24 Apr 2011 01:31 PM

A former board member of Dubai World has sued Nakheel after being
denied a 15 percent ‘staff discount’ on a deal involving plots of land on Palm
Jumeirah.

According to documents issued to the Dubai World Tribunal on
March 23, Ahmed Butti Ahmed Al Muhairi, director general of Dubai Customs,
planned to purchase two plots of land on Palm Jumeirah and sought to use a 15
percent staff discount available to Nakheel employees.

His request was refused by Nakheel in a letter from the developer’s
CEO Chris O’Donnell, issued nearly two months after Al Muhairi was replaced as
a board member of Dubai World as part of a reshuffle in December 2010, court
documents show.

The case has been filed in the Dubai World Tribunal, a
subsidiary of DIFC Courts. Both Nakheel and Al Muhairi declined to comment on
the ongoing legal action.

Nakheel, which overstretched itself building islands in the
shape of palms and other ambitious projects, is part of state-owned
conglomerate Dubai World. Dubai World recently completed a $25bn restructuring
with banks.

Nakheel held separate debt talks with its bank and trade
creditors on $10.8bn of debt and will eventually be separated from Dubai World
to become a full government subsidiary.

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