German Developer ACI Dubai – ACI verzettelt sich in Dubai – Financila Times Germany

source Financial Times

Prominente verkauften ihre Namen für Bauvorhaben in Dubai – jetzt gerät das Projekt zum Skandal. Es geht um geplatzte Immobilienspekulationen, neue Identitäten in Panama – und für Anleger um 600 Mio. Euro.

Promis sind gut. Promis ziehen immer. Daher erblickte, wer vor zwei Jahren ins glamouröse Dubai reiste, überall Plakate eines Projektentwicklers aus dem nicht ganz so glamourösen Gütersloh. Sein Name: Alternative Capital Invest (ACI). Selbst Wolkenkratzer waren mit Riesenpostern bedeckt, die mit den Konterfeis von Promis wie Michael Schumacher, Boris Becker und Niki Lauda für Türme warben, die deren Namen trugen. “Man dachte, die ganze Stadt gehört ACI”, erinnert sich Lothar H.

Der Geschäftsmann hat Strafanzeige gegen ACI-Chef Robin Lohmann gestellt. Für ihn geht es um 150.000 Euro. “Lohmann ist ein Betrüger”, sagt H. Mit der These ist er nicht alleine.

Rund 600 Mio. Euro will ACI von insgesamt 8.000 Anlegern für Projekte im Scheichtum eingesammelt haben. Doch an den Baustellen stehen die Kräne still, zugesagte Auszahlungen fließen nicht. ACI beschwichtigt – und schießt gegen Kritiker zurück: Man sei Opfer von Internet-Stalking, es liefen Rufmordkampagnen. Nutzer von Finanzforen stießen kritische Recherchen an – und behaupten: Die Chefs von ACI sollen versucht haben, für 750.000 Euro die Flucht aus Dubai nach Panama vorzubereiten, unter fremder Identität. ACI dementiert das. Anlegerschützer sind dennoch alarmiert: “Wir befürchten das Schlimmste”, sagt Claudia Lunderstedt-Georgi vom Deutschen Verbraucherschutzring.
Dass es für das Geschäftmodell von Lohmann schwierig ist, liegt auf der Hand. Die Immobilienpreise haben sich in Dubai seit ihrem Hoch halbiert, die Analysten der Deutschen Bank rechnen mit einem weiteren Preisverfall um 20 Prozent. Der Preissturz brach vor allem den so genannten “Flippern” das Genick, den Spekulanten, die Immobilien erwerben und sofort weiterverkaufen. In Boomzeiten brachte das sichere Gewinne: In den USA wie auch in Dubai wechselten Immobilien bis zu zehn Mal zwischen den Flippern, ehe sich der erste Baukran drehte. Bricht der Markt jedoch ein, sitzen die Flipper auf Objekten, die sie nicht wollen. Oder nicht zahlen können.

Den “Master of Flipping” nennen Immobilien-Insider Lohmann im Wüstenemirat. Doch es hat sich ausgeflippert. Ohne Extrakugel. “Hier gibt es leere Häuser und Büros ohne Ende”, sagt Esther Stimmler vom Deutschen Wirtschaftskreis in Dubai. Auch ACI-Projekte sind so ins Schlingern geraten. Bei der Auszahlung der Anleger von vier Fonds gebe es “Verzögerungen”, gesteht ACI auf seiner Homepage ein, das Kapital sei nur noch “weitestgehend gesichert”. Es geht zunächst “nur” um 54 Mio. Euro. Schuld sind die Anderen: Ein Käufer von ACI-Bauten könne angeblich nicht zahlen. Während FTD-Anfragen in den ACI-Büros in Gütersloh und Dubai unbeantwortet bleiben, meldete sich Robin Lohmann am Donnerstag auf der Online-Plattform “Arabian Business” mit den Worten: “Geld zurück ist derzeit keine Option”.

Jetzt fahnden mehrere Anwaltsbüros nach geprellten ACI-Investoren. Anwalt Jens-Peter Gieschen aus Bremen, hat nach eigenen Angaben zehn Mandanten gewonnen. “Nach unseren Informationen sind auch bei Projekten, die Investoren als Sicherheit dienen sollen, die Bautätigkeiten inzwischen weitgehend eingestellt”, sagt Gieschen. Auch einstige Vertriebspartner des Fonds haben sich von ACI distanziert. Man sehe “dringenden Handlungsbedarf”, heißt es in einem Schreiben, dass der FTD vorliegt. Sie haben ein Kontrollgremium eingerichtet und fordern eine Gesellschafterversammlung der Fonds.

Der Berliner Anwalt Sven Tintemann will die prominenten Zugvögel, die die Immobilien bewarben, zur Verantwortung ziehen. Er bastelt nun an einer Klage gegen Schumi, Becker und Lauda.

Troubled German Developer ACI puts Dubai Waterfront Towers on hold

source The National

Alternative Capital Invest (ACI) Real Estate, the troubled German-owned developer behind projects such as the Boris Becker, Michael Schumacher and Niki Lauda towers, says it will put on hold its developments on the Dubai Waterfront and shift investor holdings to other assets.

Affected projects include the Ferretti and Pershing towers, which have yet to begin construction. The company said it would shift client’s investments in these developments to its towers in Business Bay, which consist mainly of the towers linked to prominent German sport figures. The Becker, Schumacher and Lauda towers are currently under construction but running significantly behind schedule.

In recent weeks a group of German investors in ACI-linked funds, which have financed the developments, complained that the developers have missed payout deadlines. The postponement of the Dubai Waterfront towers comes as ACI is struggling to maintain investor funding that it needs to complete existing projects.

Robin Lohmann, the managing director of ACI Dubai, said in a recent interview slowing payment was having an impact on construction schedules.

“All our sites [in Business Bay] are under construction,” he said. “But since there are delays in people’s payments, we have had to slow down in order to deal with it. If nobody pays, the risk is that construction stops. This is the last thing that we want.”

He added that of the 11 projects the company had underway, at least seven were under construction.

Dubai Police Nab Real Estate Agent on the Run

source KhaleejTimes

DUBAI — A real estate agent, on the run for
nearly a month, was caught by Dubai Police for allegedly issuing dud cheques worth Dh203 million to high
end clients.

Ahmed Thani bin Ghalita, Director of the anti-crime department of Dubai Police said, about 39 people, including top soccer players, had lodged complaints against the man, a British citizen of Pakistani origin.

Ghalita s
id the complainants alleged that the man had sold them property, for which they gave deposits, and when the deals fell through, the deposits were not repaid as guaranteed. “The police received information that the suspect, who is a holder of a British pa
sport, was trying to escape from the UAE. The police launched a search for the suspect who worked as a real estate broker and who was wanted by Interpol for issuing dud cheques to clients, including soccer players of various teams,” he said.

“
he police was informed by employees that the suspect was not living with his children and that he changes his appearance and was not using his mobile phone to avoid being caught by
the police.

“The suspect was stunned when he was arrested by the police in a coffee shop in the Murraqabat area — he thought that the police would not recognise him. The suspect has been on the run for 25 days.”

Ghalita said the suspect, using his work in the real estate company, dealt with clients through the email and online resources so as to avoid providing evidence for an office or home address.

Ghalita would not say which company the man was working for or which property or properties he claimed to be a broker for.

The department of anti-crime, established by the Dubai Police on September 2008, has approved a number of ways to curb crime, including the investigation of bounced cheques of large sums.

It was a part of this initiative that Dubai Police tracked the 39 complaints issued at various police stations, investigated and arrested the man for issuing bounced cheques worth Dh203 million.

During the first half of the current year the police recovered thousands of dirhams by investigating on dud cheque cases and arrested 278 wanted people.

Dubai Property Developer Al Barakah chief arrested on bouncing cheque charges

source The National

The chief executive of the property developer Al Barakah is in custody, and is likely to face charges relating to the signing cheques worth millions of dirhams, which later allegedly bounced.

SIK, whose company was planning what would have been the tallest tower in Ajman, surrendered himself to the Dubai police last Thursday and was officially arrested on Sunday, according to the public prosecutor’s office of the Muraqqabat police station.
“He has been captured on Sunday this week,” said a first sergeant at the public prosecutor’s office. “He said that his name has been blocked and that he can’t leave. He told that his business had [gone] worse and that he wanted to solve everything by the court. And because of that he surrendered himself.”

According to the officer, the charges related to a bounced cheque. “He had one bounced cheque of nearly Dh10m and the case has been sent yesterday to the court,” he said.

The chief executive was being sought by Dubai Police for more than seven months for allegedly bouncing cheques that totaled more than Dh40 million (US$16.33m), according to the Dubai police.

Al Barakah, which launched a dozen projects in Dubai and Ajman from 2007, found itself in difficulty last year.

SIK signed agreements with investors promising to buy back their properties after six months with a guaranteed 50 per cent profit on the downpayment. He issued post-dated checks as a guarantee of the buy-back.

Al Fajer Properties – Angry International Investors Demand Investigation in $630 Million Dubai Real Estate Scandal

Thursday , June 16, 2009  source Financial Post

Al Fajer Properties ( AFP) Construction Status June 2009
Ebony Ivory Towers JLT Dubai, Photo Al Fajer Investorgroup

A major real estate scandal is unfolding in Dubai as 500 angry unit buyers and investors in the $630 million Ebony Ivory Towers project demand a full government investigation of developer Al Fajer Properties and its agent Dynasty Zarooni Inc., according to Ebony Ivory Investors Group.”

Misleading advertisements and press releases, overselling of non existing space and the missing down payments are among the buyers’ documented complaints, according to Moses Oye, a British investor and spokesperson for the Al Fajer Properties Investors Group having investors from US, UK, Russia, Iran, India, Canada & Pakistan.

“We are calling on Dubai’s Real Estate Regulatory Authority (RERA) and the Dubai Ruler’s Court to investigate the developer, cancel the Ebony Ivory project and compel a refund of our $140 million in down payments,” said Oye.

Oye cited a series of fake construction photographs that ran in a local newspaper in July 2008 with Al Fajer Properties logo. The photos showed a structure rising six floors above ground with the following caption: “Shot on location on 10th June 2008, Ebony Ivory, Jumeirah Lakes Towers.”

In reality, the photos were taken at another Al Fajer site and currently there is only a hole in the ground at the Ebony Ivory project, according to Oye.

“Had we known that Al Fajer Properties was presenting false and misleading photographs, we would never have invested in the development,” he said.
“In fact, some investors have already filed criminal cases for misrepresentation with the Dubai Public Prosecutor.”

In the past year, there has been virtually no construction on the site, said Oye. In addition, investors have learned that the developer sold approximately 250,000 square feet more space than the maximum built-up area allowed by government permit – another indicator of potential fraud selling air.

Most importantly, Al Fajer Properties paid Dynasty Zarooni Inc approximately $55 million of the $140 million collected in down payments that should have been deposited in an escrow account, Oye said. “We demand our money back and want to know why Al Fajer gave those funds to Dynasty Zarooni rather than use them for construction,” continued Oye.

“The law sets a punishment of imprisonment and fines for any person who embezzles payments made for the purpose of construction of real estate project.”

To date, RERA has ignored the investors’ demands of a transparent investigation and the evident violations of RERA regulations and UAE criminal laws in order to serve the interests of Sheikh Maktoum Bin Hasher Al Maktoum and Al Fajer Properties, said Oye.

“What do you do when the independent government agency trusted by the Ruler of Dubai to regulate and monitor the real estate developer’s performance actually participates in a cover-up operation that deprives investors of their rights?

What does that say to the world about the security of real estate investments in Dubai?

Where is the transparency and accountability Dubai Ruler ordered?

Are the laws not applicable when it comes to Sheikh Maktoum Bin Hasher Al Maktoum?” Stated Oye

“Al Fajer Properties, which is controlled by a powerful sheikh from a ruling
family using the government agency platform, continues to mislead the
public about their non-existing construction with false reports as evident in their recent press release claiming 15% construction where in reality it is a deserted site with no construction at all.”

Picture 2009:  Maktoum Hasher Juma Al Maktoum,
President AL Fajer Properties Dubai

Summing up the case, Oye raised grave concerns about the recent threats some of the investors have received and quoted attorney Salim Al Shaali who represents plaintiffs in a criminal case against the Ebony Ivory sales agency for misrepresentation.

In a recent interview, Al Shaali said,

“We have full trust in Dubai justice system. I personally guarantee all investors that Dubai government will never allow a few individuals to abuse their social or official positions for illicit profits and damage the reputation of the brand Dubai as a safe and most secure investment hub in the region.

We are waiting for a reply from the prosecution’s office”

ACI Real Estate Dubai Update: ACI Owner ordered new identities in Panama

source 06. July 2009

ACI owner Uwe Lohmann (64) and his son Robin (34) shall have offered 750.000 Euros down payment in cash to an international offshore and consulting provider in Panama – to receive two new identities in South America!?!

The consultants should also care for a secure domicile abroad with protection against extradition – as well as for bodyguards as company for both German “businessmen”. Robin Lohmann shall also have transferred huge amounts to Bahrain, further funds shall be deposited in Panama and Belize.

What the Lohmann family did not consider with their supposed flee preparations: The consultant which has been contacted by them, is also correspondent of the Financial Intelligence and News Service www.gomopa.net.

Father and son Lohmann planned and launched in Dubai commercial and residential tower projects, accumulating 300 Million Euros from more than 8.000 German investors, at least in the same amount from Off-Plan unit buyers in Dubai and further 500 Million Euros from UAE banks. Parts of their projects have been branded with the names of celebrities like Boris Becker, Michael Schumacher and Niki Lauda. Meanwhile, Robin Lohmann was forced to deposit his passport at Dubai authorities and has to show up frequently at police and public prosecution in Dubai. His management team under Indian Sanjay Chimnani already left the country.

In spite of several trials, none of the Lohmanns was available for statements. For journalist colleagues from ArabianBusiness as well as GoMoPa and others, Robin Lohmann was not reachable – neither in person, nor via phone.

Under these conditions, it seems to be just a matter of time till the former “CEO of the year” will be brought into custody.

Property Prices dubai will fall further

Source Arabian Business  05 July 2009

More than 60 percent of people think UAE property prices are going to drop by another 20-30 percent this year, according to an online poll.

Arabian Business asked its readers whether they thought the real estate market had hit the bottom, with just 5 percent in agreement.

Instead, some 63.4 percent of people thought there was still another 20-30 percent correction to come.

House prices in Dubai have tumbled 50 percent from their peak during the fourth quarter of last year.

Problems of over-supply and population shrinkage, with thousands of jobless expatriates expected to return home now schools have broken up, will mean continued pressure on prices.

The poll results provide a rather more pessimistic view of the UAE real estate market than a recent Shuaa Capital survey into investor confidence.

The Dubai-based investment bank found that 19 percent of investors believed that the market had bottomed out.

The investor confidence survey, conducted between June 13 and 16, is the only one of its kind in the region. It also found the highest increase in investor confidence, rising 16.8 points to 123.8 points on the month.

However, the Arabian Business poll found that only 6.1 percent of people were optimistic, believing that the market was now on the road to recovery.

While, 25.6 percent played it safe, saying nothing was going to change until the end of the year.

ACI Group denies CEO Robin Lohmann has been jailed, fled UAE

source Arabian Business

UAE-based real estate broker ACI Group has denied stories in German business media that the company’s CEO Robin Lohmann has been jailed.

Trade title Financial Intelligence Service last week reported that Lohmann has been under investigation by the Dubai police.

The paper stated that four independent sources had confirmed Lohmann had been taken into custody for one night, had surrendered his passport to the authorities, and was not allowed to leave the country before the debts of ACI Dubai were settled.

Real estate companies have been battered by the collapse in property prices in the UAE, which has led to several master developments grinding to a standstill.

Sub developers with projects within these master developments have been battling to satisfy investors who have paid deposits for property that is not currently being built, while struggling to pay contractors on jobs that are ongoing.

Last week a senior executive of Khoie Properties, the developer behind a $550 million project on Ras al Khaimah’s man-made island of Al Marjan, was handed a three year jail sentence for bouncing two cheques totalling over $30 million.

An official from ACI, who spoke exclusively to Arabian Business but would not be named or directly quoted, said that reports in the German business press about Lohmann’s arrest, and rumours circulating in the Gulf that he had fled the country, were not true.

ACI Group is a German-based company that entered the Gulf market in 2004 with a multi-million dollar marketing programme for a succession of projects and established a glamorous headquarters – a large converted beach villa that overlooks the Arabian Gulf.

High profile projects in the emirate included tie-ups with F1 racing legend Michael Schumacher and former Wimbledon tennis champion Boris Becker.

The office is still functioning, as Arabian Business discovered when it visited the premises last week. Mr Lohmann was not available for a meeting and has not returned our calls.

A company spokesman mounted a robust defence for ACI, noting that, unlike many other developers who had already fled the country, ACI was still operating and construction work was ongoing. The company’s web site, he said, showed pictures of ongoing construction work that proved work is progressing.

There are 19 projects promoted on the web site, but only seven have “construction updates” that show progress on building sites.

The remainder, which includes the Boris Becker Beach Resort & Tennis Academy in Ras Al Khaimah, have no construction updates on the web site.

ACI said that no refunds were being paid to investors because projects have been postponed, not cancelled, but added that investors were not required to pay additional instalments until construction work restarted.

ACI Real Estate Dubai – ACI Funds Germany and Austria – Investors in Becker, Lauda and Schumacher Towers demand refund

source The National  July 01, 2009

German and Austrian investors are demanding their money back from funds set up for the construction of the Niki Lauda, Michael Schumacher and Boris Becker towers in Dubai.

The investors paid about €150 million (Dh779.7m) into funds to pay for the buildings. The investments would then be repaid from the capital gains.

But the investors said money due in March had not been repaid and they were consulting lawyers to withdraw their money from the funds.

Alternative Capital Invest (ACI), the investment company behind the project, insists it has “solid assets” and the towers will go ahead, according to its managing director, Robin Lohmann.

Mr Lohmann said the money to repay investors was not available because the projects could not be sold as planned due to the market slowdown.

He offered the investors the choice of waiting until ACI’s assets could be liquidated, or the chance to take property assets owned by another company, Falcon International Investment Group, based in Dubai.

But some investors fear that if they accept the Falcon option, they may end up with additional risk and costs.

“Since I do not know the value of Falcon’s properties nor what exactly the liabilities and commitments are according to Dubai law, I am extremely sceptical,” said Hartmut Goddecke, the lawyer for several German investors. “We don’t know what exactly we are buying here.”

According to Martin Kraeter, a German business facilitator based in Dubai, the ownership of Falcon’s assets is unclear, although it has links to ACI.

Falcon only speaks about reservation contracts of different properties but reservation contract is not a purchasing contract,” Mr Kraeter said. “We may end up with shifting Falcon’s risk into investors’ responsibility.”

But Mr Lohmann said: “With this package, we just wanted to show people that we have the ACI assets which are the Boris Becker Tower, the Schumacher Tower and all the rest, and th0at in addition to that we also offer a security package through Falcon of fully paid assets worth about €100m, which is almost the double of what was due in March.”

In Dubai, property buyers who have invested off-plan in apartments in ACI’s buildings are also upset at delays in construction. Mr Lohmann said there had been complaints from the buyers but also delays in their payments to the developer.

ACI Real Estate Dubai – Comment of the Day

Comment from : complain.aci June 28, 2009 at 1:13 pm

REQUEST FOR CONTACTS

The press releases in Germany did lead to an enourmous media recognition.
Actually, there are several serious national and international requests, looking now for “ACI victims” here.

Thus, we are looking for

a) unit buyers with running cases,

b) suppliers running behind their moneys,

c) other serious detailed information.

Please, no gossip or twitters. Just facts.

As a first step, we can be contacted via E-Mail, complain.aci@gmail.com

Ajman Property Investors File Fraud Case

A group of 20 property investors from Canada, the UK and Pakistan turned up in Dubai yesterday demanding a meeting with the Ajman developer Casamia Star, which they claim has failed to update them on their investments.

The group said they had bought properties in Frankfurt Residence, a yet-to-be built tower in Ajman. Casamia’s general manager, Merzak Gaci, refused to meet the group as they had not made an appointment and they were “rude”. Mr Gaci called police. Two officers turned up but there were no arrests.

The group said they had bought properties in Frankfurt Residence, a yet-to-be built tower in Ajman. Casamia’s general manager, Merzak Gaci, refused to meet the group as they had not made an appointment and they were “rude”. Mr Gaci called police. Two officers turned up but there were no arrests.

The investors then went to the Bur Dubai police station to file a complaint against the company. “The police told us to come back at 7.30 in the morning to file a case for fraud,” Mr Ghulam said.

Afterwards, he said, the group would go to the Ajman Real Estate Regulatory Authority and Dubai’s Real Estate Regulatory Agency.

Casamia Star was established by the German architect and entrepreneur, Hendrik Hommel. Mr Hommel is currently in Germany and unavailable for comment.

“We thought it was a German company and we trusted the market,” said Farhad Norousi, a spokesman for the investors. “But in February the developer Casamia Star sold its brokerage branch, also called Casamia Star.

 And in June the brokerage told us they have cancelled their contract with the developer, whose director has disappeared and they are no longer responsible”

He said investors did not know what had become of the money they had already submitted.

Mr Gaci said the contract with the developer had been cancelled because of a lack of co-operation, which “means when somebody does not pay you, does not give you the status of your construction”.

He added:

“What will happen to the investors? We all want to know. The investors’ money is in the developer’s account.”

Source The National

ACI Dubai : The Fizzling ACI Towers from Boris Becker, Niki Lauda and Michael Schumacher

18.06.2009 – The Fizzling ACI Towers from Boris Becker, Niki Lauda and Michael Schumacher

Souce: GoMoPa Berlin

Alternative Capital Invest (ACI), Germany‘s first and biggest mover in offerings of property investments funds in Dubai, went now in a sorrowing financial swirl. Senior head Uwe Lohmann (64) has to fear meanwhile daily that his son and head of Dubai operations, Robin Lohmann (34), has to move his presence in Arabia into a Dubai jail due to financial debts. Huge funds for projected towers with the branding partners Boris Becker, Niki Lauda and Michael Schumacher seem to be trickled somewhere in Dubai, the projects appear bankrupt.

The Germany based Financial Intelligence Service http://www.gomopa.net gained from four independent sources in Dubai that Ferrari and Maybach driver Robin Lohmann shortly has been taken in Dubai into custody for one night. The junior chief of ACI had furthermore to deposit his passport with the Dubai authorities. He shall not be allowed to leave the country before financial debts of ACI Dubai are finally settled.

Based on own publication, ACI since 2004 did accumulate EUR 300m (AED 1.5bn) from more than 8,000 private investors in Germany and Austria only. Purpose of the funds was the project development of residential and commercial property in Dubai in a volume of EUR 600m (EUR 3bn).

Up to date, only construction pits with unclear ownership situations are existing. Within the total of seven separate investment funds entities, independent external auditing and control never has been settled. Another managerial from ACI, formerly employed at Dynasty Zarooni, additionally shall have collected huge sums among Arab private investors. Dubai’s public prosecution is in process of investigation against ACI and its entire management due to suspected fraud and embezzlement of funds. The former DZ manager as well as most of ACI’s other managerial meanwhile left the country. Except Robin Lohmann, he now frequently has to show up at Dubai Public Prosecution.

According to ArabianBusiness, Dubai’s Real Estate Regulatory Authority RERA is investigating as well against ACI due to bounced cheques, fronting and breaking of Dubai’s Escrow Laws. Robin’s father, Uwe Lohmann (operating from Guetersloh, Germany) meanwhile tries to calm down the more than 8,000 German investors, who are waiting since March 2009 without success for a promised front-up profit share of EUR 60m (AED 300m). For June 26, 2009 he initiated an extraordinary general assembly via fax voting.

Even in 2008, many investors signed ACI shares with the expectation to make easily some 12% annual profit with a lot of emphasis. They paid at least shares in the value of EUR 10k (AED 50k) plus a surplus of 5% to ACI. Thus, due to the enormous success of ACI’s pilot investment fund from 2004, which was the first Germany based fund in Dubai over all, with profit returns higher than calculated.

This kind of masterpiece was the newcomer’s “ice breaker” in relations to many German speaking as well as Arab investors. Robin Lohmann received a lot of honors in Dubai as exceptional entrepreneur: He was the first German who received 2008 the “CEO Middle East Award” as well as the “Arabian Property Award”.
And, Robin Lohmann “invented” 2007 the so-called Tower Branding – giving huge investment objects the names of living legends. November 2007, Robin inked with the motorsport legend and airline chief Niki Lauda from Austria his first branding license agreement. Two residential and commercial towers (33 and 30 floors) in Dubai Business Bay shall be named Niki Lauda Twin Towers. Lump sum to be paid from the investor’s funds back in Germany to Lauda, was EUR 1m (AED 5m).

In January 2008, tennis and poker game legend Boris Becker became patron for another planned tower with 23 floors, next to Niki Lauda Twin Towers. Although his branding was related only to one tower, he received from ACI 100% more than Niki Lauda: EUR 2m (AED 10m).
Im Summer 2008, Formula One Driver Michael Schumacher joined as third prominent branding partner – name of “his” project Michael Schumacher Business Avenue with 35 floors. He received EUR 5m (AED 25m).
What a genius move! The media applauded and investors queued up in front of ACI’s offices. Huge funds went into ACI’s accounts and no one did wonder that the concerned HNWIs Lauda, Becker and Schumacher didn’t invest a single penny themselves in “their” tower projects.

Entrepreneur and millions juggler Robin Lohmann jumped with the branding strategy on top of Dubai’s Tower Flip Sales Bubble. “Sales is tremendously increasing”, stated his father Uwe in press releases. But when Dubai’s property bubble did burst in autumn 2008, the free fall for Robin Lohmann couldn’t be stopped. What did he wrong? Why did his projects switch “on hold”, although most of the other projects sustained the crisis? Martin Kraeter (45), Principal, Trustee and Dubai analyst at KLP Group Emirates and living in UAE since 5 years: “Lohmann’s branded towers with the name of prominent people have been very ‘hip’ in Dubai. But Lohmann and his management team closed any sales deal they could get. More or less blind they sold their off plan units to anyone, whoever came across. By this, they often sold units to ‘flippers’.

‘Flippers’ paid with signing of contracts just a down payment of 5 or 10%. If feasible, the project started with the first project step. Before starting the next level, the buyers had been scheduled to pay the next installment, what they didn’t or couldn’t. Because it was their plan to ‘flip’ – means to sell the purchased off plan unit before the next installment due date with a ‘premium’ to the next following ‘flipper’ – themselves. The financial crisis came up and all follow up ‘flippers’ disappeared, being the needed target to make the buck.
 
Due to the financial crisis and the consequences in lending policies of banks, these terrible speculator models disappeared over night. Serious fonds initiators and developers take at least 20 or 30% down payment so that the off plan buyers keep on track.”

What went wrong now with the fund entities II to V from ACI, to which also the branded towers are belonging?
The reasons gave Senior Uwe Lohmann by himself with a letter to all investors end of May: The fund entities would have been closed and finalized as per 31st of December 2008, due to the negative change of the double taxation treaty between Germany and the UAE. Closing per end of 2008 would enable the entities to pay out profits tax free, by this all projects has been sold out in one move to one buyer end of December 2008. Buyer was a company called YAMA International LLC from Dubai. But YAMA has not been able to pay the contract price in the amount of EUR 100m (AED 500m) because their bank loan and finance agreements failed. Due to that reason, ACI would not be in the position to pay its investors the front up profit share of EUR 60m (AED 300m) as promised per March 2009.

Dubai expert Kraeter values this letter as a Bluff: “It seems for me that the project purchase by YAMA is a fake. This over hasted sale of the construction pits should have been initiated by the specific tax-free situation, ending with December 31st 2008. But this obviously cancelled deal is in my view possibly more the spoofing of inproper usage of investor’s moneys.”

Before 26th of June – the deadline of the general assembly – now one wants to comment on that at ACI.

************

There are some more actual press releases in Germany coming up at the moment:

17.06.09 – http://www.gomopa.info/Pressemitteilungen.html?id=256&meldung=Die-Pleitetuerme-von-Becker-Schumacher-und-Lauda [Translation above]
22.06.09 – http://www.gomopa.info/Pressemitteilungen.html?id=259&meldung=ACI-Dubai-Fonds-inklusive-Lear-Jet-fuer-den-Juniorchef [German]
23.06.09 – http://www.gomopa.info/Pressemitteilungen.html?id=261&meldung=ACI-Dubai-Dr-Schulte-Anwaelte-pruefen-Haftung-von-Boris-Becker-Michael-Schumacher-&-Niki-Lauda [German]

Al Fajer Properties-500 Investors Sign Petition Seeking Dubai Ruler’s Intervention in Dispute with Dubai Developer

Dubai source Zawya

DUBAI, United Arab Emirates, 2nd of June 2009 -[ME NewsWire]

Ebony Ivory Investors Group, 500 international property buyers and investors, have signed a petition requesting Dubai’s Real Estate Regulatory Authority (RERA)
and the Dubai Ruler’s Court to investigate the Jumeirah Lakes Towers Ebony Ivory Towers project, involving Al Fajer Properties and its marketing agent Dynasty Zarooni

The petitioners have asked RERA to cancel the Ebony Ivory project and require Al Fajer Properties to provide a full refund, alleging legal violations by the developer, including fake construction photographs and misleading press releases.

“We have paid approximately $140 million and have a signed contract from Sheikh Maktoum Bin Hasher Al Maktoum,” said Moses Oye, spokesperson for the affected investors from the US, Canada, UK, Russia, India, Iran, Pakistan and other nations. “Now, we want our money back.”

The investor group said it is essential for RERA to conduct a comprehensive and transparent investigation to resolve the matter quickly because of the potential damage it may cause to overall investor confidence in Dubai. “We understand that Al Fajer Properties is controlled by a powerful member of Dubai’s ruling family,” added Oye. “However, if our complaints are not treated as per the rule of law, that will damage the reputation of the Dubai government, which we believe has always stood for transparency, accountability and implementation of the rule of law for all.”

Advertisement June 2008 with false construction status
In its complaint, the investor group cited advertisements in a local daily newspaper published in July, 2008 that show construction cranes with Al Fajer Properties logo and a structure rising six floors above ground. The caption read: “Shot on location on 10th June 2008, Ebony Ivory, Jumeirah Lakes Towers.

However, independent media reports have confirmed that the photographs actually showed Al Fajer’s other project, Jumeirah Business Centre Towers.

In reality, the site for Ebony Ivory Towers is merely a hole on the ground with no workers or machinery on site.

The investor group has sought for an explanation from Al Fajer Properties and has raised the issue with RERA on a number of occasions, without receiving a response for the past six months.

Now the investor group is ready to seek further legal action against Al Fajer Properties and Dynasty Zarooni.

-Ends-

Contacts
For Ebony Ivory Investors Group:
Moses Oye, +447956289390
Fax: +442084590202
ebonyivoryinvestorsgroup@yahoo.com

German Version:

500 internationale Immobilienkäufer und Investoren, die der Ebony Ivory Investors Group angehören, haben eine Petition unterzeichnet, in der sie Dubais Immobilienaufsichtsbehörde (RERA) und den Dubai Ruler’s Court auffordern, das Ebony Ivory-Towers-Projekt von Jumeirah Lakes Towers zu untersuchen, an dem Al Fajer Properties und seine Marketingesellschaft Dynasty Zarooni Inc. beteiligt sind.

Die Unterzeichner werfen dem Bauträger Rechtsverstöße wie falsche Baufotos und irreführende Pressemitteilungen vor und fordern die RERA auf, das Ebony Ivory-Projekt aufzulösen und Al Fajer Properties zur vollständigen Rückerstattung zu verpflichten.

„Wir haben ca. 140 Mio. US-Dollar bezahlt und haben einen Vertrag, der von Scheich Maktoum Bin Hasher Al Maktoum unterzeichnet ist”, sagte Moses Oye, der Sprecher der betroffenen Investoren aus den USA, Kanada, Großbritannien, Russland, Indien, Iran, Pakistan und anderen Ländern. „Nun wollen wir unser Geld zurück.”

Der Investorengruppe zufolge ist eine umfassende und transparente Untersuchung durch die RERA unverzichtbar, um die Angelegenheit schnell zu aufzuklären und den potenziellen Schaden, den sie dem Investorenvertrauen in Dubai insgesamt zufügen könnte, abzuwenden. „Nach unserer Kenntnis wird Al Fajer Properties von einem einflussreichen Mitglied der Herrscherfamilie von Dubai kontrolliert”, erklärte Herr Oye weiter. „Sollten unsere Vorwürfe jedoch nicht dem Gesetz entsprechend behandelt werden, würde dies den Ruf der Regierung von Dubai schädigen, die nach unserem Ermessen immer für Transparenz, Rechenschaft und die gleiche Anwendung des Gesetzes für alle eingetreten ist.”

In ihrer Beschwerde führt die Investorengruppe Anzeigen an, die im Juli 2008 in einer einheimischen Tageszeitung erschienen sind. Auf diesen waren Kräne mit dem Logo von Al Fajer Properties zu sehen sowie ein Bau mit sechs Stockwerken. Unter dem Bild stand: „Aufgenommen vor Ort am 10. Juni 2008, Ebony Ivory, Jumeirah Lakes Towers.”

Unabhängige Presseberichte bestätigten jedoch, dass auf den Fotos in Wirklichkeit Al Fajers anderes Projekt zu sehen war, die Jumeirah Business Centre Towers. Tatsächlich handelt es sich bei der Baustelle von Ebony Ivory Towers lediglich um eine Baugrube ohne anwesende Gerätschaften oder Arbeiter. Die Investorengruppe verlangte eine Erklärung von Al Fajer Properties und machte die RERA wiederholt auf die Angelegenheit aufmerksam, hat aber im Laufe der vergangenen sechs Monate keine Antwort erhalten. Nun sind die Investoren zu weiteren rechtlichen Schritte gegen Al Fajer Properties und Dynasty Zarooni bereit.

Die Ausgangssprache, in der der Originaltext veröffentlicht wird, ist die offizielle und autorisierte Version. Übersetzungen werden zur besseren Verständigung mitgeliefert. Nur die Sprachversion, die im Original veröffentlicht wurde, ist rechtsgültig. Gleichen Sie deshalb Übersetzungen mit der originalen Sprachversion der Veröffentlichung ab.

Sheikh Mohammed had given the investigative team carte blanche – Corruption team makes its case

source The National

An independent team investigating alleged corruption in Dubai companies began laying out its findings in court yesterday, having been given unprecedented powers of scrutiny.

The team, led by Mohammed Mustafa Hussain, was appointed by Sheikh Mohammed bin Rashid, the Ruler of Dubai and Vice President of the UAE, to investigate dealings at the developer Deyaar.

Mr Hussain told the Dubai Court of First Instance that an intricate web of land deals and transactions had created a massive fraud. He was giving evidence in the case of SA and IJ, two former Deyaar employees who stand accused of bribery involving the sale of land.

Both men have been on bail but only SA, an Emirati and former member of the Deyaar board, was present at the hearing, where he was represented by three lawyers.

In one case, the pair allegedly bought a piece of land and engineered its sale to Deyaar days later for almost twice what they paid.

SA, who was also an executive of Dubai Islamic Bank, had bought the land in Dubai Marina for Dh415.8 million (US$113.28m) on September 23, 2007.

Two days later it was sold to Deyaar for Dh800 million. In addition, Mr Hussain alleged, SA made a personal commission of Dh11.5 million.

As Dubai Islamic Bank and its subsidiary Deyaar are both government-owned entities, their employees are prohibited from accepting commissions.

The land deal had been struck between SA and IJ, who “initially claimed they did not know each other”.

However, Mr Hussain said his team had unearthed evidence that the two had been business partners before.

“When confronted about their history, IJ claimed that he was simply acting as the middleman for Deyaar,” said Mr Hussain. IJ had persuaded Deyaar executives that the Dh800 million price represented “an opportunity”.

During his investigation, Mr Hussain could find no one in Deyaar who could account for the doubling in the price of the land.

“The people we interviewed could not even give a single reason for the price increase,” he told the court.

He also provided evidence of a farm and another parcel of land that were sold in Al Ain, allegedly earning another defendant, AA, also a Deyaar employee, Dh73,647 in kickbacks.

Dubai’s public prosecution has charged 10 former Deyaar employees with a range of offences including bribery, forgery and breach of trust, swindling and supplying company secrets to competitors.

Speaking outside court, one of the public prosecutors said that Sheikh Mohammed had given the investigative team carte blanche to look into the Deyaar allegations.

By law, they were allowed to question anyone, and to demand any documents or files. The team reported directly to Sheikh Mohammed.

Sheikh Mohammed publicly stated his firm support for the investigations during an internet question-and-answer session in April.

“These cases are a sign of the Government’s clear interest in improving management of firms and its commitment to principles of proper accountability,” he said. “No one in the Emirates is above the law and accountability.”

There was, he said, “no room for corruption and the corrupt”, adding: “In all corruption cases, people are not only prosecuted and punished, administrative and legal holes that they exploited to commit their crimes are plugged.”

Al Sheikh Deyaar Properties chairman resigns

source Arabian Business

Sunday, 21 June 2009

Deyaar Properties chairman Nasser Al Sheikh has resigned from his post, the Dubai property developer said in a statement on Sunday, without giving a reason.

Al Sheikh was replaced in May as head of Dubai’s Department of Finance after spearheading the launch of the emirate’s $20 billion bond programme in February, a move aimed at easing worries state-linked companies could default on debts.

“The board of directors of Deyaar will convene shortly to consider its ratification of the same,” it said in a statement.

Deyaar did not name Al Sheikh’s replacement.

Al Sheikh remains chairman of Islamic mortgage lender Amlak and is an assistant to the director of the ruler’s court for foreign affairs. (Reuters)

Stripping down the laws

source Kippreport

June 21st, 2009

A Lebanese man in Dubai has been sentenced to one month in jail followed by deportation for wearing a cancer awareness t-shirt featuring a nearly naked Victoria Beckham, reports The National. The Dubai Court of Appeals charged him with offending public decency.

The 28-year-old was reportedly stopped at a bakery in Dubai last year by an Arab man, who questioned him about his t-shirt, which showed a nearly nude Beckham with the slogan “Protect the Skin You’re In.”

The two argued, and after the accused left to change his shirt, the police were called and charged him with three accounts; drunkenness, fleeing the scene of a conflict and offending public decency. The first two charges have since been dropped.

The shirts were designed by Marc Jacobs for a cancer awareness campaign; the accused was working as a brand manager for the Chalhoub Group, which holds the franchise for Marc Jacobs in the region.

Laws regarding public behavior in Dubai came to light when a British couple was arrested for having sex on a public beach last year.

It was followed by media reports earlier this year that claimed that the Dubai Executive Council had launched a campaign against what it considers inappropriate behavior in public. According to the reports, playing loud music, dancing, nudity, kissing, holding hands and being under the influence of alcohol in public will be considered offenses, and may result in jail time and fines.

Wearing revealing clothing in public, including short skirts and shirts that expose shoulders, will also be considered offenses, the council said.

Last week, the British Foreign Office launched a campaign urging British nationals to dress appropriately and respect local customs when overseas on holiday. The office warned that there have been several cases of British nationals being charged with indecent public exposure while on vacation, reported the Telegraph.

Research by the office found that half of all British women who sunbathe topless risk prosecution, and that one in seven men admitted to having had sex in a public place on holiday.

Some of the instructions given include: “Rude gestures in Dubai are considered to be an obscene act and offenders can be prosecuted,” and “topless sunbathing in Abu Dhabi is forbidden and liable to be punished by imprisonment or deportation.”

The latest incident again highlights the struggle that Dubai seems to be facing: being a cosmopolitan city with traditional Islamic laws. With more cases of “public indecency” making headlines, is the emirate trying to prove a point? And will the negative publicity prove to be detrimental to Dubai’s image?

Paris Hilton-Dubai doesn`t need enemies with friends like Paris Hilton

source Arabian Business Blog

Dubai has spent the past 20 years marketing itself as a luxury holiday destination for wealthy, westernised, European and Asian travellers – work that has paid off with the city becoming a household name in living rooms from Hong Kong to Huddersfield.

Americans, despite direct Emirates flights beginning several years ago to New York, and more recently to San Francisco, Houston and Los Angeles, still don’t entirely grasp the Dubai brand.

All that could change in the next few weeks as global party princess Paris Hilton is in town filming a series of Paris Hilton BFF for music television channel MTV.

Or will it?

So far, Ms Hilton has not worked too hard at breaking down the stereotypical image of a modern Arab state. In an interview with Jimmy Kimmel, a popular late night talk show host in the United States, she laughed off suggestions that only her eyes would be visible when dressed for Dubai, but went on to joke that she would be wearing a burkha.

More seriously, and I’m sure much to the annoyance to the generous Dubai people that are hosting her, she said that “they are very strict”, and “the rules are crazy out there”.

She eventually corrected Kimmel by saying that in Dubai “they are a little bit more lenient than anywhere else,” but undid the recovery by saying that she would not wear the perfectly charming little black dress she was wearing on the talk show.

In all, the interview could have been talking about Hilton going to Taliban-ruled Kabul, rather than the Las Vegas of the Middle East, Dubai.

See for yourself and let me know what you think.

Paris Hilton Talks About Her Former BFFs, and Filming in Dubai

Al Fajer Properties Scandal claim emerges amid media blackout

May 28. 2009
source Independent by Heerkani Chohan and PropertyWeek

Fake pictures allegations and a member of the ruling family linked to a 429 pound million Dubai property row that has touched nerves across the city.

“Fake” pictures are at the heart of a property scandal that could harm the reputation of the once-booming real estate market in Dubai.

A major property development firm with links to the ruling family of the UAE city-state, and the firm’s marketing agency, are accused by investors, many of whom are UK citizens, of obtaining millions of pounds through the use of false construction photographs.

On Thursday, after local and regional media had been alerted to the situation by angry investors, news agencies across the city said they were silenced by senior representatives of the Government of Dubai, as orders were issued for reports of the storm to be pulled.

Around 500 property buyers of varying nationalities collectively purchased three planned tower blocks named Ebony 1, Ivory 1 and Ivory 2 in the Jumeirah Lakes Towers area of the Gulf city last year from property development firm Al Fajer Properties, at a total cost of £428 million.

The firm is part of the Al Fajer Group, ran by company president Sheikh Maktoum bin Hasher Al Maktoum, brother-in-law to the supreme ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum.

But at the weekend it was claimed that Al Fajer Properties and its marketing agent Dynasty Zarooni misled their customers into parting with millions of pounds by presenting photographs showing construction of three buildings, purported to be Ebony 1, Ivory 1 and Ivory 2, up to the sixth storey.

In fact the photographs were of buildings on neighbouring plots. Today, the plots on which Ebony 1, Ivory 1 and Ivory 2 are to be built, are empty holes in the ground, as our photographs show.

“I only handed over my money because I was shown property under construction,” said UK-based Ebony and Ivory Investor’s group spokesperson Moses Oye. “That’s my simple gripe. It’s a black and white issue.”

Mr Oye, who has parted with a little over £1 million – 20% of his total purchase price – had made the seven-hour flight from London to Dubai specifically to chair a press conference to raise awareness of the mess, after official government channels failed to take action.

“We have not sought legal representation as yet,” My Oye said, “because we have tried to square this correctly. The next step will be to go legal.”

However, the press conference was cancelled at the last minute by the hotel where it was to be held, citing “health and safety reasons.” The hotel, Dubai’s Mina A’Salam, is owned by Dubai Holdings, a Dubai government-controlled holding company.

“I asked for the reason to be put in writing, but the hotel refused,” Mr Oye said. “So I asked for a suite. But they said they did not have anything. I personally believe that the powers that be cancelled the meeting.” When contacted, Mina A’Salam management did not respond.

The conference was called to highlight a petition signed by the 500-strong investor’s group urging the Dubai Real Estate Regulatory Agency (Rera), the government body which oversees the Dubai property market, to force Al Fajer Properties to refund the £86 million that has to date been collected by the firm from investors in the three towers.

After the meeting was axed, news agencies were called to a

neighbouring hotel to be told of the escalating situation. But

when reports began to surface on news websites, news

agencies received phonecalls from senior Dubai

government figures ordering them to be pulled.

“I had written half of the article when I was told by my editor to stop,” said a Dubai-based national newspaper reporter who attempted to cover the story. “The investor’s group have records of payment, and it’s obvious that they have been shafted, but we can’t write about it.”

The lack of progress on the three towers is a source of deep concern for the investors. Many real estate projects across Dubai were put on hold or cancelled as the torrent of easy credit that fuelled rampant development in the city ran dry with the onset of the global financial crisis.

“Whether Al Fajer are still going to construct or not is neither here nor there,” Mr Oye said. “They would not have got my money if they had not shown me fraudulent pictures.” Al Fajer Properties also declined to comment.

Fellow investor’s group spokesperson Atul Patel, who has parted with £600,000 added: “A lot of people would not have bought had they not thought the project was in an advanced stage of construction.”

The pictures also appeared in an advertising campaign in a Dubai-based national newspaper last July, with the caption, “Shot at location on 10th June 2008. Ebony & Ivory – Jumeirah Lakes Towers.” The two page spread included the seals of Dynasty Zaronni and Al Fajer Properties. Dynasty Zarooni also neglected to comment.

The news will further dampen the spirits of the once-booming Dubai real estate market – a vital facet of the city’s economy. Last year a number of senior executives from major property developers across the city were arrested in a high-profile fraud clampdown as the government sought to clean up the property sector.

With it, the global recession has brought a host of new problems. Many construction firms operating in the city, some of which are UK-based, are owed millions of pounds by Dubai property developers struggling with a lack of liquidity.

Among them is UK engineering giant WSP. The firm’s finance director Peter Gill revealed that the firm is owed £28 million by Dubai-based developers, some controlled by the city’s government.

Dubai’s property market has been likened by some to a giant ponzi scheme, where bigger and more grandiose projects were announced in a bid to keep investment rolling in until the financial crisis tamed the city’s galloping development.

At Cityscape Dubai, a major property exhibition held last October, government-controlled developer Nakheel, responsible for the giant palm tree shaped islands off the coast of Dubai, announced it was to build the world’s first 1km high tower. The Nakheel Tower – if ever built – will eclipse the current world’s tallest building, Dubai’s own Burj Dubai.

Meanwhile, state-owned developer Meraas unveiled a mammoth £16.3 billion development called Jumeirah Gardens, to be built in place of an existing residential area in the city.

Today, the plot where the world’s new tallest tower should be under construction is little more than a sun-baked stretch of desert. Work on the Nakheel Tower was halted in January, and work on vast swathes of Jumeirah Gardens has also run aground.

The national media blackout over the Al Fajer case is unusual even in a country gripped by a harsh media law, and a pending new law, that has already drawn criticism for its prohibition of free speech.

A report by the US-based Human Rights Watch group into the UAE’s pending media law, Just the Good News, Please, was published last month. “(The pending law) includes troubling content-based restrictions on speech, draconian fines, and harsh registration requirements,” the report said.

It highlighted a number of the new law’s provisions, branding them: “Not only unlawful intrusions by the government into the right of journalists in the UAE to freely express their thoughts and opinions on any subject of their choosing, but also an unjustified attempt to control the independence of the media.”

Words that will do little to inspire confidence in Mr Oye. “This is going to define my faith in the country,” he said. “If I’m dealt with correctly, great. But at the moment, it’s not going that way. We’re in the witching hour now.”

Heerkani Chohan is the pseudonym of a journalist living and working in Dubai.

Dubai : Shuaa fails to agree bond deal

source Financial Times

A long-running dispute between Dubai-based investment bank Shuaa Capital and the government-linked Dubai Group erupted into the open yesterday as both sides failed to agree terms on a delayed convertible bond issue.

Analysts said the case was raising questions about both the investment bank’s solvency and the willingness of Dubai-related companies to meet their financial commitments as the emirate tries to deal with its $80bn debt.

In October 2007, Shuaa Capital, one of the region’s oldest investment banks, sold a Dh1.5bn ($408m) convertible bond to Dubai Banking Group, a subsidiary of Dubai Group, which is owned by the emirate’s ruler, Sheikh Mohammed bin Rashid Al Maktoum.

But on maturity in late October last year Dubai Group declined to convert the shares at the agreed price of Dh6 as the investment bank’s share price fell to Dh2.7 amid the financial crisis. Shuaa’s shares in February fell below par value of Dh1 and have since recovered to yesterday’s close of Dh1.7.

Shuaa has been negotiating with Dubai Group since October, but the deadline for resolution passed on Monday. Shuaa yesterday said it would go through with the 2007 agreement and asked the stock market to issue 250m new shares to Dubai Group, handing it a 32 per cent stake in the investment bank.

Dubai Group, which has been exposed to the real estate and financial services downturn, declined to convert and said it wanted “to redeem the note in accordance with laws”, demanding payment of the Dh1.5bn principal and interest.

At the end of the first quarter, Shuaa’s cash position was Dh400m and shareholders’ equity stood at Dh2bn, leading analysts to question the company’s ability to pay back the bond in cash.

Shuaa said it had been exploring every option to negotiate a resolution, but said the contract gives it the legal right to convert the bond into shares. It therefore does not face any solvency problems, it said.

Dubai Group, which disputes Shuaa’s interpretation, said it would continue to negotiate in the interests of both parties, saying “both companies are important for Dubai”.

The government controlled Dubai Financial Market, on which Shuaa is listed, briefly suspended trading in its shares yesterday and later said it would not issue the new shares to DBG unless both sides had come to an agreement.

Additional reporting by Robin Wigglesworth in Abu Dhabi

Al Fajer Properties-Aufgebrachte internationale Investoren verlangen Ermittlungsverfahren im Rahmen eines 630-Millionen-Dollar-Immobilienskandals in Dubai

June 16, 2009 Dubai

source

Dubai – Vereinigte Arabische Emirate

In Dubai braut sich sich derzeit ein bedeutender Immobilienskandal zusammen.

Nach Angaben der Ebony Ivory Investors Group fordern 500 aufgebrachte Käufer und Investoren des Ebony-Ivory-Towers-Projekts im Wert von 630 Millionen US-Dollar ein umfassendes behördliches Ermittlungsverfahren gegen den Bauträger
Al Fajer Properties und seinen Agenten Dynasty Zarooni Inc.

Irreführende Werbeanzeigen und Pressemitteilungen, Verkauf nicht existierender Quadratmeter und verschwundene Anzahlungen gehören zu den dokumentierten Vorwürfen der Käufer, erklärte Moses Oye, ein britischer Investor und Sprecher der Al-Fajer-Properties-Investorengruppe, der Anleger aus den USA, Großbritannien, Deutchland, Russland, Iran, Indien, Kanada und Pakistan angehören.

„Wir fordern die Immobilienaufsichtsbehörde von Dubai (RERA) und den Hof des Herrschers von Dubai auf, ein Ermittlungsverfahren gegen den Bauträger einzuleiten, das Ebony-Ivory-Projekt zu stoppen und eine Rückzahlung unserer geleisteten Anzahlungen in Höhe von 140 Millionen US-Dollar anzuordnen“, erklärte Oye.

Oye bezog sich auf eine Reihe von gefälschten Baufotos, die im Juli 2008 unter dem Logo von Al Fajer Properties in einer Lokalzeitung erschienen waren. Auf diesen Bildern war ein Rohbau mit sechs überirdischen Stockwerken mit folgender Unterschrift zu sehen: „Vor Ort am 10. Juni 2008 aufgenommen, Ebony Ivory, Jumeirah Lakes Towers.“

In Wirklichkeit seien diese Fotos bei einem anderen Bauprojekt von Al Fajer gemacht worden und beim Ebony-Ivory-Projekt sei im Moment nichts weiter zu sehen als ein Loch im Erdboden, so Oye. „Hätten wir gewusst, dass Al Fajer Properties falsche und irreführende Fotos ausstellt, dann hätten wir nie in dieses Projekt investiert“, fügte er hinzu. „In der Tat haben einige Anleger bereits bei der Staatsanwaltschaft in Dubai Anzeige wegen betrügerischer Darstellung erstattet.“

Im vergangenen Jahr habe die Baustelle nach Aussagen von Oye praktisch keinerlei Fortschritte gemacht. Außerdem hätten die Investoren erfahren, dass der Projektträger rund 250.000 Quadratfuß mehr Fläche verkauft habe, als nach der Baugenehmigung zulässig sind – ein weiterer Hinweis auf potenziell betrügerische Vorgehensweisen.

Und der wichtigste Punkt sei, dass Al Fajer Properties rund 55 Millionen US-Dollar der an Anzahlungen geleisteten 140 Millionen US-Dollar an Dynasty Zarooni Inc. ausbezahlt habe, anstatt sie in ein Treuhandkonto einzuzahlen, sagte Oye. „Wir verlangen unser Geld zurück und wir wollen wissen, warum Al Fajer diese Gelder an Dynasty Zarooni bezahlt hat, anstatt den Bau damit zu finanzieren“, setzte Oye hinzu. „Nach dem Gesetz wird die Unterschlagung von Geldern, die zu Bauzwecken für ein Immobilienprojekt bezahlt wurden, mit Gefängnis- und Geldstrafen geahndet.“

Bisher habe die RERA die Forderungen der Investoren bezüglich einer transparenten Ermittlung und der offensichtlichen Verletzungen der RERA-Bestimmungen und Strafgesetze der VAE zugunsten der Interessen von Scheich Maktoum Bin Hasher Al Maktoum und Al Fajer Properties gänzlich ignoriert, sagte Oye. „Was kann man machen, wenn die vom Herrscher von Dubai mit der Regulierung und Beaufsichtigung der Bauträgerleistung betraute unabhängige Regierungsbehörde in Wirklichkeit an einer Vertuschung beteiligt ist, mit denen die Investoren ihrer Rechte beraubt werden?

Was sagt das über die Sicherheit von Immobilieninvestitionen in Dubai aus?

Wo bleibt die vom Herrscher von Dubai angeordnete Transparenz und Rechenschaftspflicht?

Gelten die Gesetze nicht mehr, wenn Scheich Maktoum Bin Hasher Al Maktoum die Hand im Spiel hat?“

„Al Fajer Properties, das von Maktoum Hasher Juma Al Maktoum, einem Scheich aus einer Herrscherfamilie kontrolliert wird, der die Regierungsagentur als Plattform benutzt, führt die Öffentlichkeit weiterhin mit falschen Berichten über nicht vorhandene Bauarbeiten hinters Licht. w

Wie der jüngsten Pressemitteilung von Al Fajer Properties zu entnehmen ist, seien angeblich 15 Prozent der Bauarbeiten abgeschlossen , während es in Wirklichkeit ein verödeter Bauplatz ohne jegliche Bauarbeiten ist“, erklärte Oye.

In seiner Zusammenfassung des Falles brachte Oye ernste Bedenken über kürzliche Drohungen zum Ausdruck, die einige der Investoren in letzter Zeit erhalten hätten.

Er zitierte sodann Rechtsanwalt Salim Al Shaali, den Vertreter der Kläger in einer wegen betrügerischer Darstellung gegen die Ebony-Ivory-Verkaufsstelle anhängigen Klage.

In einem vor kurzem abgegebenen Interview sagte Al Shaali: „Wir haben volles Vertrauen in das Rechtssystem von Dubai. Ich persönlich garantiere allen Investoren, dass die Regierung von Dubai es nie zulassen würde, dass einige Personen ihre soziale oder amtliche Stellung für illegale Profite missbrauchen und das Ansehen der Marke Dubai als einen in jeder Beziehung sicheren Investitionsknotenpunkt der Region schädigen.

Wir warten auf eine Antwort der Staatsanwaltschaft.“

Die Ausgangssprache, in der der Originaltext veröffentlicht wird, ist die offizielle und autorisierte Version. Übersetzungen werden zur besseren Verständigung mitgeliefert. Nur die Sprachversion, die im Original veröffentlicht wurde, ist rechtsgültig. Gleichen Sie deshalb Übersetzungen mit der originalen Sprachversion der Veröffentlichung ab.

Ebony Ivory Investors Group
Moses Oye, +447956289390
Fax: +442084590202

Comment of the Day – Driven by good faith in the name ACI and its German CEO

Wirtten to 7Stars by James 16. Jun2 2009

Driven by good faith in the name ACI and its German CEO, I have entrusted ACI AED 750,000.00 with the INTENT to purchase an apartment/unit in ACI’s Project PALAZZO ARABIA Al-Furjan.

I have not signed any reservation contract/agreement, much less the Purchase/Sales Contract, since I did not consent to the conditions. Since the project entertains an escrow account with NBAD, I trusted that my funds will be sitting in that account.

In order to have access to information about that, I would have to register the Unit, which I “intended” to purchase with RERA. This would cost another up 3 percent of the offered sales price of some AED 2.6 million.

As per legal advise, I decided not to do that and instead file a very clear-cut criminal complaint based on allegations of potential embezzlement of funds and unjustified enrichment, after the legal department of ACI responded negative to the request of my attorney to refund my AED 750,000.00.

Question: would anyone, who read this comment, know of other formerly interested parties of the PALAZZA ARABIA project of ACI?

Dubai – UAE: Arbitration cases to touch Dh70 Billion – 80 per cent of them are real estate and construction-related

source Zawya – Business 24/7

Dubai, 15 June 2009

The value of arbitration cases in Dubai has more than doubled to Dh65 billion this year over the past year, and about 80 per cent of them are real estate and construction-related, said a top official from the Dubai International Arbitration Centre (Diac).

“Under the arbitration mechanism, we have for this year alone 140 cases in addition to the 100 cases we had last year. As of March, active cases under examination is worth Dh65bn but I think the number has already increased and the amount of disputes can reach Dh70bn this year,” Dr Hussam Talhuni, Director of Diac, told Emirates Business.

He expects the number of such cases to continue to increase “dramatically” due to the current adverse economic climate.

Disputes under the Diac is different from those lodged in Dubai Courts. Arbitration – a form of alternative dispute resolution (ADR) – involves resolution of disputes outside the courts, in which a third party reviews the case and imposes a decision that is legally binding for both sides.

“We are not related to Dubai Courts, we are helping the ministry on a federal level to adopt modern systems for the courts… The increase in the awareness of the importance of arbitration has led to the more than double increase in the number of cases, 75-79 per cent of which are related to property and construction,” Talhuni said.

Unlike litigation cases, arbitration takes shorter period. “We usually finalise more than 60 per cent of the cases by the end of the year,” he said.

Dubai is now looking at speeding up the procedure further to be able to cut down the resolution period in one to three weeks, Talhuni said, adding that the centre is hoping to finalise the ADR mechanism by the end of the year.

Talhuni said the current economic situation requires quick and fast action from all parties to accelerate the process of economic reforms and one of the mechanisms to resolve trade disputes is by providing quick solutions which will lead to the reduction of the number of court cases.

He said the ADR mechanism will create an atmosphere of trust in the business community and will provide the investors, both local and international, the confidence about the efficiency of the UAE courts in resolving commercial disputes quickly and at a lower cost.

“The current system involves litigation, which involved the courts and all the rigid procedures, according to the national law, where a judge will hear the parties and give them years and years of procedures. Whereas in alternative dispute resolution, since they are alternative they aim to provide quicker solutions, in a less expensive process and more peaceful climate for the parties,” he said.

The centre is studying on whether to introduce this “new legal layer of mediation/reconciliation” in the courts. “Under the courts, they have this amicable settlement mechanism but if you compare that to the modern application of ADR, you cannot consider it as part of the modern applications.”

Legal experts say more than 90 per cent of the cases are resolved even before they come to court anywhere in the world. Despite this, Talhuni said, ADR is still much more needed in today’s times. “Mediation is the mechanism that will help parties settle the disputes… wherein maybe each party may give up some part of their rights and accordingly sign a settlement,” he said.

By Karen Remo-Listana

Al Fajer Properties – Sheikh Maktoum Hasher – Iranian’s lawsuit reveals royals’ power in UAE

source WorldTribune 09 June 2009

ABU DHABI — A member of the royal family in the United Arab Emirates has for the first time been sued by an Iranian executive on charges of fraud.

Shahram Abdullah Zadeh has sued the brother-in-law of the emir of Dubai in an unprecedented civil action in the UAE. The 37-year-old Iranian national has accused the brother-in-law, Hasher Maktoum Bin Juma’a Al Maktoum, of trying to take over Zadeh’s real estate firm.

“He thought he could do it all because he’s a sheik,” Zadeh said.

(Photo: Shahram Abdullah Zadeh)

The suit has challenged the transparency of the justice system of Dubai, which requires foreign investors to take on a UAE partner. Zadeh said he reverted to a civil action when prosecutors refused to file criminal charges against Hasher.

Zadeh, a life-long resident of Dubai, said he selected Hasher as the required UAE partner in Al Fajer Properties, established in 2004 and now worth $2 billion. Zadeh said he and Hasher fell into a dispute amid delays in building a billion-dollar office tower.

The economic downturn in the UAE has harmed a range of partnerships with foreign investors. In Dubai, the commercial capital, police have detained nearly 20 executives on suspicion of fraud. None of the detainees was connected to the ruling Al Maktoum family.

“There is no room for corruption and the corrupt,” Dubai ruler Mohammed Al Maktoum said. “In all corruption cases, people are not only prosecuted and punished, administrative and legal holes that they exploited to commit their crimes are plugged. No one in the emirates is above the law and accountability.”

Zadeh said Hasher, who ignored two summonses, exploited his connections to the ruling family to have the Iranian arrested. In February 2008, Zadeh was imprisoned for 60 days and pressed to renounce links to Al Fajer.

As Zadeh languished in prison, Hasher was said to have taken over Al Fajer and appointed his son chief executive officer. By the time, he was released, Zadeh found that his office safe was ransacked and cleansed of any documents that linked him to the company.

At one point, Zadeh appealed to Dubai’s emir. He said the emir did not respond to the complaint against his brother-in-law.

“We understand that Al Fajer Properties is controlled by a powerful member of Dubai’s ruling family,” Moses Oye, who represents investors in another Al Fajer project, said.

Still, Al Fajer continues to operate. On April 15, Al Fajer and the Dubai Real Estate Regulatory Agency announced the first transfer of property using a new official online system.

Photo: Sheikh Maktoum Hasher Juma Al Maktoum

Hasher’s son, Maktoum, was identified as president of Al Fajer.  Zadeh was not mentioned.

Foreign investors have demanded an investigation of another Al Fajer project, Ebony Ivory.

The investors, alleging fraud, have called on the Dubai Real Estate Regulatory Agency to force Al Fajer to issue a refund.

“We have paid approximately $140 million and have a signed contract from Sheik Maktoum Bin Hasher Al Maktoum,” Oye, who represents investors from Britain, Canada, India, Iran, Pakistan and the United States, said. “Now, we want our money back.”

Investors of Indigo Properties’, a Dubai-based developer, are concerned by the developer’s proposal to take over their right

source Business 24/7

Investors of Indigo Properties’, a Dubai-based developer, are concerned by the developer’s proposal to take over their right to shift them to another cluster in one of their projects if they accept their re-pricing offer.

According to the re-pricing offer e-mailed to an investor, the company said it is offering a “considerable” discount [17 per cent] to the investor, reducing the price per square feet to Dh750 from Dh900 on its Indigo Ville project in Jumeirah Village.

Although the company has given a payment plan, it has not given a construction schedule.

“If I accept the re-pricing offer, then they reserve the right to transfer my unit to another cluster. But if I am paying for it, then the choice must rest with me,” an investor said on condition of anonymity. “We have asked the company for a construction update, but we haven’t got any response from them. They need to link payments to construction milestones,” added the investor.

A senior Indigo Properties official told Emirates Business the developer is going ahead with all its announced projects. But as a short-term measure it is offering investors of Indigo Ville the option of switching over to clusters that are currently under construction.

“We are going ahead with all our projects and none of them are cancelled. We are offering revised payment plans to our investors, with Indigo Ville buyers being proposed a re-pricing offer. And for bulk buyers in the project, we are willing to take back 50 per cent of the stock they had bought.”

The company executive said they are not forcing investors to accept the offer, rather they are giving them the chance to switch over to a property that will be completed before theirs. “Those who do not wish to accept this offer can continue with their old contracts. We will build all the projects that we have announced, but our plans have been delayed.”

The developer is currently working on cluster four and six of the Indigo Ville project. Each cluster has 12 to 19 townhouses.

Meanwhile, a number of developers in Dubai have started to offer investors the option to move over to projects that are currently under construction. In February, the Real Estate Regulatory Agency (Rera) had said it expected about 25 per cent of the projects in the emirate to be consolidated.

Al Fajer Properties – Zadeh says he’s a victim of a system in which the rulers can manipulate police and the courts to protect their business

source

DUBAI, United Arab Emirates — In this Gulf city-state, two things have long been untouchable: business interests and the ruling family. However, an attempt to sue a member of the family over an alleged financial swindle is a sign of how much the economic crisis has rattled business as usual here.

Shahram Abdullah Zadeh accuses the brother-in-law of Dubai’s emir illegally of taking over his real-estate firm and having him detained by police to help the swindle.

Zadeh, a 37-year-old Iranian national who has lived in Dubai all his life, brought a civil case against the brother-in-law to get his firm back, a rare move. Even more surprising, Zadeh tried to raise criminal charges, but that step went nowhere because prosecutors rejected it.

The case has raised questions about whether Dubai really is what it claims to be: A boomtown where international businessmen can safely invest and turn a profit; or rather, a nest of cronyism and connections where royal blood can still trump entrepreneurial effort.

Such questions were largely ignored by everyone – businessmen and politicians alike – as long as the cash was rolling in during Dubai’s stunning expansion over the past decade. But now the emirate has hit the skids in the world financial crisis.

“During the boom, Dubai’s shortcomings were glossed over, but now that the economy is struggling, it’s becoming a different story,” said Christopher Davidson, an author of two books on the United Arab Emirates and a lecturer at Durham University in Britain.

Dubai’s emir, Sheik Mohammed bin Rashid Al Maktoum, led the emirate’s vast financial ambitions. But business ran far ahead of the effort to modernize legislation in what remains a traditional Arab monarchy, where the ruler and his family hold final say.

Now the government has been trying to rein in some fast-and-loose business practices. About a dozen former executives are in custody for various investigations. Some have close ties to the government, but none of those in custody are related to the ruling family.

Zadeh’s case goes farther – breaking to taboo of questioning Dubai’s leadership. Zadeh says he’s a victim of a system in which the rulers can manipulate police and the courts to protect their business.

“If Dubai cannot provide security for foreign investors, they might as well switch off all the lights,” he said.

Attempts over the past weeks by The Associated Press to contact the brother-in-law, Sheikh Hasher Maktoum bin Juma’a Al Maktoum, were unsuccessful. Hasher and his company attorneys did not return repeated phone calls or respond to interview requests.

In the first session of Zadeh’s civil case, Hasher and his lawyers failed to appear. In the second a week ago, his lawyer asked the court for more time to study the allegations. The case is to resume May 4.

Zadeh and the sheik went into business in 2004. Foreigners are allowed to deal in property only after finding an Emirati sponsor to officially register a company. The usual practice is for the Emirati sponsor to give his signature for an annual fee or profit share. Several members of the sprawling ruling family are involved in such deals.

Zadeh set up a firm, Al Fajer Properties, and was chief executive while Hasher held the trade license. The firm was profitable and is now worth about $2 billion, according to Zadeh. But the partnership soured over delays in building a commercial tower.

Zadeh said in an affidavit to Dubai’s attorney general that he was arrested in February 2008 and held for 60 days. He says he was never charged with any crime but was questioned over his business – including the combination of his safe.

While Zadeh was in detention, Hasher took over the company by appointing his son Sheik Maktoum as chief executive, ousting Zadeh, according to Zadeh’s filing. When he was released, Zadeh says he found his office safe had been cleaned of documents showing he was the owner and Hasher’s partner.

Zadeh also says police tried to push him to sign a document saying he had no connection to the firm. He submitted to the court Al Fajer documents listing him as CEO and transactions that his lawyers contend show he was the sole investor. The Associated Press was given a copy.

Hasher “thought he could do it all because he’s a sheik,” Zadeh said.

Police refused to comment on whether Zadeh was detained. Zadeh says they continue to hold his passport and so far he has had little luck pushing his claims.

He submitted a criminal complaint but the attorney general refused to investigate, giving no reason.

Zadeh then filed a complaint directly to Dubai’s emir, who holds what is called the Ruler’s Court. Residents can bring to the emir what they believe are injustices unaddressed by the courts – from disputes over money to wrongful deaths.

Zadeh says he has received no response.

see also: Terahn Times

More: Al Fajer Properties Dubai – Jumeirah Business Centre – Ebony Ivory Towers Dubai

Al Fajer Properties – The former CEO of Al Fajer Properties Shahram Abdulla Zadeh was jailed in 2008 – Today 2009 President of Al Fajer Maktoum Hasher bin Juma Al Maktoum – A part of the Dynasty Zarooni Scandal ?

http://online.wsj.com/article/SB123457503562586691.html

DUBAI — Amid the movers and shakers of this glittering city, Shahram Abdullah Zadeh cut a wide swathe. He cruised around town in a white Bentley and dined with royalty as his company developed one of the emirate’s premier office complexes.

But last February, a phone call from Dubai’s state security effectively ended it all.

Hauled in and locked up for 60 days, Mr. Zadeh says he was interrogated about his role in Dubai’s freewheeling real-estate sector and his business relationship with the brother-in-law of Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum. When released, Mr. Zadeh says he had been frozen out of the real-estate company he had helped start.

Mr. Zadeh’s experience, compiled though court and company documents, offers a rare window into the murky business world that helped transform this city from an empty coastline into a metropolis. It also may offer a cautionary tale for investors lured to the city, which bills itself as the modern face of a new Middle East. Dubai is one of seven semi-autonomous emirates that make up the United Arab Emirates.

The U.S. government and human-rights groups have long criticized the judicial system in the U.A.E for a lack of independence and oversight. In the good times, investors didn’t fret much about these shortcomings. Now, some of the same deals that helped build Dubai are coming undone — in particular, a tradition of off-the-book business partnerships between Emirati citizens and elite expatriates like Mr. Zadeh, who was born in Iran.

Mr. Zadeh claims his detention came after a business dispute with his partner at Al Fajer Properties, Sheikh Hasher bin Juma’a Al Maktoum and his son, Sheikh Maktoum bin Hasher al Maktoum. Both men are members of the extended family of Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum. Mr. Zadeh alleges the two men took control of the firm while he was in custody, according to a lawsuit he filed with Dubai’s public prosecution office last year.

Mr. Zadeh has not been charged with a crime. But for the past year, authorities have held onto his passport, making it impossible for him to travel or find work.

“I used to believe in the miracle of Dubai. But now I see it all as a mirage,” said Mr. Zadeh, 37. Sheikh Hasher denies any wrongdoing. He says he was not responsible for Mr. Zadeh’s jailing and that he removed him from the company because Dubai authorities said he had offered bribes, an allegation Mr. Zadeh denies.

“I don’t need to defend my reputation. He does,” Sheikh Hasher said in a telephone interview. “This man is crazy. He is a crook with a sweet tongue.”

Some of Mr. Zadeh’s claims are impossible to verify independently. His only copy of the real-estate partnership agreement is missing, and official company documents show the Sheikh Hasher as sole owner. Dubai’s security services, the public prosecutors’ office and the Dubai ruler’s court all either declined to comment or didn’t respond to repeated requests for comment.

Last fall, the Emirates’ Human Rights Association, a government body, wrote to authorities asking for an explanation about why Mr. Zadeh’s passport was being held. The group did not receive any response, according to his lawyers.

Mr. Zadeh grew up in Dubai, attending school with the children of some of the city’s top families. He managed his family’s hotel and retail holdings and decided to go into business himself in 2000. Real-estate development was off limits to foreigners, even longtime residents like himself. So, he turned to a common practice — a silent partnership with a U.A.E. citizen.

Typically, such partnerships involve an Emirati acquiring a business license and then granting his foreign partner management control. The foreigner either pays an annual fee to the Emirati or the two share profits. The terms are set forth in a parallel set of documents, separate from those submitted to the government. Such contracts are so common that courts here have upheld them in disputes, according to commercial lawyers here.

In 2004, an old friend of Mr. Zadeh’s father brokered an introduction with Sheikh Hasher. The sheikh owns Al Fajer Enterprises, a conglomerate that includes a large construction and contracting arm.

In affidavits filed with Dubai’s prosecution office, Mr. Zadeh contends that he and Sheikh Hasher verbally agreed to a partnership, signing a contract on Feb. 1, 2006. The partnership, Mr. Zadeh says, established the two men as co-owners of Al Fajer Properties. The men would split profits equally and would invest equal amounts of capital. The contract named Mr. Zadeh as chief executive.

Mr. Zadeh provided $335,000 in start-up capital, and he invested another approximately $30 million in the company, according to bank documents reviewed by The Wall Street Journal. Mr. Zadeh’s affidavits contend Sheikh Hasher didn’t contribute any capital. Sheikh Hasher denies the equity partnership ever existed.

Business took off quickly. One of Al Fajer’s biggest projects was a planned $750-million development of five office towers, set just inland from Dubai’s man-made, palm-tree-shaped island. Mr. Zadeh bought three of the five plots for the 40-story towers with his own money, according to financial documents. With investors lined up for units, he then awarded $215 million worth of contracts to the construction arm of Sheikh Hasher’s Al Fajer Enterprises, according to company documents.

But by late 2007, the contractors were behind schedule, according to company documents and former employees. Al Fajer Properties was facing fines for the delays, and buyers were starting to complain. Sheikh Hasher wanted payments to continue to his companies, but Mr. Zadeh claims he said no. The sheikh complained in a series of text messages that unless Mr. Zadeh released more cash, his contracting companies would go bankrupt.

On Feb. 21, 2008, Mr. Zadeh claims, he received an unusual phone call from State Security, asking him to come in that evening for a talk. When he arrived, , he claims that police blindfolded him, put him into a sport-utility vehicle and drove him to a detention center.

In the eight weeks he was jailed, Mr. Zadeh says he was never accused of a specific crime or shown an arrest warrant. Instead, he says, he was repeatedly interrogated about his personal life and Al Fajer’s operations, and gave his interrogators the combination to the company’s safe after they asked for it. “They told me that if I did not cooperate that they would ruin me,” Mr. Zadeh said.

Mr. Zadeh contends the only copy of his partnership agreement with Sheikh Hasher was in the safe. Former employees of Al Fajer say the company safe was emptied while Mr. Zadeh was jailed.

On March 6, Sheikh Hasher’s son, Sheikh Maktoum, was named the new chief executive of Al Fajer Properties. Sheikh Hasher hired international accountants to audit Al Fajer’s books, according to former employees. He then presented the findings to employees and select clients, accusing Mr. Zadeh of embezzling funds. Phone calls and emails sent to lawyers and accountants of Al Fajer Properties were not returned.

Sheikh Hasher says Mr. Zadeh stole money from him, but did not provide evidence, or the audit, to back his claim. Mr. Zadeh denies it.

Prosecutors refused to investigate the case, citing an order from Dubai’s attorney general, an official appointed by the ruler. In November, Mr. Zadeh tried one last option. He approached the ruler’s diwan, or court administration, and asked for mediation from Sheikh Mohammed himself.

So far, there has been no reply.

read more about ….

Dubai ‘Fraud’: Where Are The Locals?

Forbes     March 11, 2009

Seven suspects have reportedly been singled out by the authorities, but all of them are foreigners.

Dubai’s anti-corruption probe seemed in full swing Tuesday, after seven expatriate businessmen were reportedly accused by prosecutors of taking part in a $500.0 million fraud at Dubai Islamic Bank. The suspects included three Britons, two Pakistanis, one Turk and one American, according to the Associated Press, raising concerns that local Emiraatis might not be held as fully accountable as the expat brigade.

“Some might say that it’s evidence of the anti-corruption drive, but again, where are the Emiraatis?” wondered Christopher Davidson, a British academic who has authored several books on Dubai and the United Arab Emirates. “There have to be the local sponsors, the line managers, the people whose desk at which the buck stopped.”

The alleged fraud involved a company called CCH, which according to reports was linked to some of the named suspects and may have forged documents to fraudulently obtain funds from Dubai Islamic Bank. The bank issued a statement on Tuesday claiming its exposure to CCH was around $330.0 million and that it was chasing down assets “in a range of countries.”

The former chief executive of Dubai Islamic Bank, Saad Abdul Razak, was reportedly taken into custody last year for questioning, as part of the authorities’ probe of the real-estate sector, but his name does not seem to have made the final list. Press reports claim that a handful of local Emiraati executives have also been interrogated, including Sami al-Hashemi, ex-CEO of real-estate developer Mizin, and Abdul Salam al-Marri, head of the Lagoons development on Dubai Creek.

Although Dubai’s defenders cite the example of a former cabinet minister, named in press reports as Khalifa Mohammad Bakhit al-Falasi, who was sentenced to two years in jail in February for an unrelated case of fraud and embezzlement, the truth is that very few local Emiraatis have been charged or punished as a result of such investigations.

Expatriate businessmen have also accused the Dubai authorities of torture and detention without charge, including Zack Shahin, ex-CEO of Dubai Islamic Bank’s real-estate subsidiary Deyaar Properties, and Shahram Abdullah Zadeh, former manager of developer Al-Fajer Properties. (See “Desert Storm In Dubai.”)

Zack Shahin is still behind bars and still has not been charged, according to one of his American lawyers, James Pitts, who told Forbes that there were around 40 other foreign businessmen in a similar situation in Dubai.

When asked whether Shahin might have provided names to the authorities in exchange for a lighter potential sentence, or exemption from the charge sheet, Pitts replied: “I am certainly not aware of any such arrangement.” 

Read also: Desert Storm in Dubai

Read also : Madoff of The Mideast Denies Charges 

Dubai Dream Villas show their ( not so old) age – Complaints of poor quality dream home owners

source The National UAE

DUBAI // Rama Hariharan wonders if her six-bedroom, Dh5 million (US$1.36m) dream home has begun succumbing to Mother Nature.

Sections of her villa, adorned with custom-made furniture from Indonesia, leak profusely when it rains, leaving behind permanent water stains. The walls in the stairwell leading to the second floor are crisscrossed with small cracks. So too is the building’s sun-baked facade.

“It’s a lovely place,” says Mrs Hariharan, 50, from India, as she gives a tour of her home in The Lakes. “But the construction quality, well, we’re a bit disappointed.”

Mrs Hariharan suspects that her three-year-old freehold villa may be prematurely ageing. She is not alone.

From The Greens and The Springs to The Lakes, homes in some of Dubai’s neighbourhoods built in the early stages of the construction boom have crumbling facades, peeling paint and sagging roofs.

As the nicks and cracks grow, residents’ concerns that their expenses will shoot up after their warranties – usually 10 years for a villa – expire are also on the rise.

Some blame poor craftsmanship, a consequence of rapidly building thousands of villas and apartments during a short time. Others point to poor maintenance standards. Mother Nature has also played a part, the extreme heat taking years off the lives of buildings, construction experts say. Most, however, agree the phenomenon is an eyesore.

“We’re not going to be living here forever, but you want a place that’s a better quality of living,” says Ahmed Ibrahim, 38, an Egyptian who lives with his family in a two-bedroom apartment in The Greens. The neglect “gives you the feeling that the area could be substandard, lower quality”.

He says his family enjoys the community-oriented design of The Greens, notably its swimming pools and barbecue pits.

But the ceiling in his apartment is crumbling away, and the development’s common areas are dotted with sheets of peeling paint. From the outside of the complex, entrances and tan-stuccoed walls appear to be in need of some tender loving care.

The culprit, Mr Ibrahim suspects, is neglect.

“To be fair, the community here, the facilities, they’re OK,” he says. “But from 2005 to today is just four years – that’s a short time to be experiencing these problems. When it comes to maintenance, to the quality of the buildings, there is room for improvement.”

In an e-mailed statement, Emaar, the master developer of these residential complexes, said its properties were “delivered to the strictest quality standards with appropriate warranties in place”.

Residents with maintenance issues can call Emaar’s hotline (800-EMAAR). “The normal signs of wear and tear in buildings,” the statement said, “are easily remedied via the planned preventive maintenance programmes and other remedial measures that are conducted on an annual basis based on the urgency of the requirement.”

But some residents, such as Nagham Hiraki, who with her husband rents a villa in The Springs 15, fear serious structural problems could cause certain parts of home to collapse.

“The place isn’t sound,” says Mrs Hiraki, 47, a Syrian national who says she has had difficulty getting her landlord and property management companies to address problems in the three-bedroom home. “For a while, I was afraid that the garage was going to fall.”

She estimates that she and her husband have paid Dh7,000 for repairs since they moved into their villa three years ago. That sum does not include a large crack that has gradually bisected her living room, or those that run along her stairwell.

The problems have convinced her to move, possibly to the Jumeirah Beach Residence apartment towers at Dubai Marina. “I wouldn’t want to live in this villa even if the rent was Dh10,000 a year,” she says.

In nearby areas, for example The Springs Four, residents also complain about a broad range of issues, including sinking driveways, sagging garages and shoddy plumbing.

In most cases, the structural integrity of villas and apartments in these residential areas is sound, says Martin Seaward-Case, a chartered surveyor who has observed construction in Dubai for the better part of a decade.

If there are issues, he says, they will probably be localised to certain sections of these communities. Because construction was delegated to hundreds of subcontractors with varying experience, it is possible that clusters of villas could have inferior build quality.

Between 150 and 300 subcontractor companies were involved in the building of these areas, he says, “so you’ll have sections that were just built better.” The Springs contains about 4,700 homes, according to the property research firm Landmark Advisory.

If anything, Mr Seaward-Case says, the “tenacious climate is more responsible than the actual build quality” for such issues as chipping paint and leaky roofs. Compared with structures in Europe, Dubai’s harsh weather probably reduces a typical villa’s life expectancy by a decade or more.

“Flat roofs are notoriously difficult to get right in this part of the world,” he says. “It only rains for two days a year, so for the other 363 days of the year it has got to deal with this incredible thermal shock that happens to it during the day.”

According to some property-management firms, the country’s unusually warm climate makes diligent upkeep all the more important.

But this is often neglected, Mick Dalton, general manager of Abu Dhabi-based Marafeq Facilities Management, says. “With the harsh environment here, it needs to be done on a regular basis.”

According to Adrian Quinn, chairman of Essential Community Management, unless the practice of property management in the UAE changes, it will be difficult to perform the necessary upkeep at residential areas.

In his native Australia, management typically repairs nicks and scratches within 24 hours, he says.

“The general philosophy here is that it sits there from month to month to month, until somebody says, ‘Oh, we’re going to repaint the building in another year, so let’s just wait and do it then’. And slowly the building degrades because they don’t have the budget to keep it looking new.”

Not until residents can form homeowners’ associations and vote on maintenance budgets and the awarding of maintenance contracts will the necessary incentives for proper property upkeep take hold, Mr Quinn says. Formal associations would grant them the authority to hire property management companies and collectively pool money to pay for expensive paint jobs and general property care. This would help relieve individuals of financial burdens, especially when home warranties expire.

“At the end of the day, for property, you must put money away for future maintenance,” he says, “because the owner will get hit with the cost of major capital works of repainting the building, caulking, waterproofing, etc.”

Comments:

“It is a disgrace that these developers use the excuse of the weather, to cover their inadequacies . We all know what the weather is like here, they knew before they built the properties, therefore they should build to a standard that can withstand the heat that the UAE gets.
this is the norm all around the world, property is built to suit local weather conditions.

also the excuse of “hundreds of subcontractors were involved” is just not a real excuse they were the master developer, they are responsible for who they use as subcontractors therefore the master developers should stand up and accept their responsibilities instead of blaming others.

as for Mrs Hiraki, to move from a Crumbling Villa to a Crumbling Tower will not solve anything for you. JBR is another example of poor design/construction and greed..”

“Can’t have said it better myself. After having lived in this country for over 15 years, I’ve absolutely no desire to buy property knowing what the substandard quality (or complete absence thereof) of preventative maintenance is like.”

Dubai – Nakheel merges with DMCC property arm

Nakheel the state-owned developer of Dubai’s palm-tree shaped man-made islands, has been merged with the property wing of Dubai Multi Commodities Centre (DMCC), a newspaper said on Monday.

source ArabianBusiness

“DMCC’s property-related operations have been integrated with Nakheel to better accomodate current market conditions and optimise resources and expertise,” a DMCC spokesman told The National.

Both companies are owned by Dubai World, which is in turn controlled by the Dubai government.
Nakheel said last month it received funds from Dubai’s government, some of which will be used to pay contractors as it looks to complete projects.

Dubai sold $10bn of bonds to the UAE Central Bank earlier this year to raise funds to support state-linked companies suffering from the financial crisis, and plans to issue another $10bn in bonds later this year.

The emirate’s once-booming real estate sector is suffering a sharp slowdown as prices have collapsed, developers slow or cancel projects and jobs are slashed.

HSBC said in a report on Sunday prices were stabilising but values could fall further.

Slumping demand would drag residential real estate prices in Dubai down between 50 and 60 percent this year from their 2008 peaks, EFG-Hermes said last month. (Reuters)

Dubai – Forbes – Al Fajer Properties Scandal – Battle over the Books – Behind the $870 million ”rescue” of a royal developer

original published Forbes

March 08. 2009 12:36AM UAE / March 8. 2009 8:36PM GMT

On Feb. 3, Al-Fajer Properties, a high-profile real estate development firm owned by the brother in law of Dubai’s ruling sheik, announced a 3.2 billion dirham ($871.2 million) restructuring of its operations. Under the leadership of its new president, Sheik Maktoum bin Hasher al-Maktoum–the eldest son of the company’s owner, and nephew of Dubai’s ruling sheik–the company explained it had liquidated its land bank and sold off its remaining inventory after a “rigorous” business review in order to strengthen its balance sheet.

But sources close to Al-Fajer tell Forbes that the restructuring was actually a wholesale “rescue” from financial ruin as an independent entity, after nearly three years of alleged mismanagement under former manager Shahram Abdullah Zadeh, a flamboyant, Iranian-born businessman who was fired last year and who claims to still be owed at least $1.9 billion by Al-Fajer.

Forbes has consulted documents–including bank statements, company contracts and employee interviews drafted by an auditing firm, which was called in to help conduct the business review last year–that purportedly tell the story of how Zadeh allegedly forged company contracts, kept fraudulent, unaudited accounts and moved money back and forth between Al-Fajer Properties and other companies owned by him.

Sources close to Al-Fajer say the new president, Maktoum, was called in by his father to fix the so-called “financial shambles” after an employee indirectly alerted the elder sheik to the company’s financial situation by requesting cash in early 2008. Documents show a cash balance of approximately $8.2 million when Maktoum arrived, which was restored to $163.4 million to $190 million 60 days later.

The sheik, say sources close to the company, did this by unwinding investments that would have saddled Al-Fajer with massive liabilities–in the “hundreds of millions” of dirhams–narrowly escaping the real estate slide that hit Dubai months later after the collapse of U.S. investment bank Lehman Brothers in September. Since then, property prices have fallen an estimated 20% to 25%.

Al-Fajer’s cash balance as of February 2009 was not made available to Forbes, but sources close to the company hint that nearly all of it has been plowed back into construction projects.

Zadeh flatly denies any wrongdoing and claims that the so-called “rescue” was a full-blown theft of a company he had owned and financed alone throughout the course of its existence. Moreover, he denies that the company was a financial mess and claims that his erstwhile partner, Maktoum, breached his trust to take control of a successful firm.

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“I was the sole investor, and Al-Fajer Properties was my company,” he says. “Sheik Hasher Maktoum has not invested a single dirham into the company; his only contribution has been the real estate license.”

The payment for this license, which cost $82,000, sat in a bank account from the company’s inception in 2004 and was not used as operational capital, Zadeh says.

Zadeh claims that Maktoum, his father and others together “cooked the books” and took control of Al-Fajer Properties while he was detained in jail by the authorities, without being charged, between February and April 2008. After being blindfolded, tortured and interrogated for weeks about unfounded bribery allegations and his operations at Al-Fajer in detail, Zadeh says he emerged from jail only to find a letter demanding he cease all involvement with the company.

Zadeh says he believes his detention was the result of a false report. Sources close to Al-Fajer say that any such claims did not come from them.

The battle has already spilled into the courts, a potentially embarrassing development for a company linked to Dubai’s ruling family. After filing two unsuccessful criminal complaints against Al-Fajer last year, Zadeh said his lawyers filed a civil lawsuit against the company on Feb. 26 at the Dubai Courts, claiming he was still owed $1.9 billion.

Although Al-Fajer Properties is said to have filed a criminal complaint against Zadeh in late February, alleging fraud and embezzlement of funds, the company’s lawyer would not confirm this. “I am aware of no suits against me,” Zadeh says.

Zadeh does not deny moving funds between Al-Fajer and other companies he owns, but claims that he put the money into the company’s account in the first place and later took it back as his “investment.” He said that no money was missing, though he admitted there had been no auditing of the company accounts because the firm was understaffed and had big ambitions.

Sources close to Al-Fajer also confirm that no money appeared to be missing; Zadeh is said to have made up the balance of withdrawn funds with later payments back into the firm.

The corporate tussle casts no direct shadow on the reputation of Dubai’s ruling family, even though Al-Fajer’s operators are one degree removed from Sheik Mohammed bin Rashid al-Maktoum. But it’s another example of the dark side of Dubai, one more blow to its image as a spectacular hub for global investment. After recently being forced to borrow $10 billion from the United Arab Emirates’ central bank in Abu Dhabi to help its enterprises pay short-term debts (see “Dubai’s Jolt Back To Reality”), Dubai is bracing for more bad news as its gross domestic product growth plunges from 8% or so in 2008 to an expected 2.5% this year.

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Dubai : A British Pilot of Emirates Airlines accused his british wife of adultery – Dubai police arrested Sally Antia

source DailyMail UK

The British mother accused of adultery in Dubai was left to languish in jail without a lawyer and without anyone knowing where she was after she was arrested at a hotel with her alleged lover.

Sally Antia, a 44-year-old businesswoman, was arrested for breaching the emirate’s strict morality laws on May 2.

It was only after her first court appearance was publicised a week ago that close friends realised what had happened to her.

Friends claim her husband Vince Antia tipped off the police about her adultery.

Mrs Antia led a busy expatriate social life, but it appears most of her friends had no idea she was having an affair. Any who did seemed reluctant to talk about the scandal and the events that led to her arrest at the five-star Radisson Hotel.

Mrs Antia, who has already pleaded guilty to the offence, is due back in court on 

Tuesday, alongside her alleged lover Mark Hawkins, who has entered a plea of not guilty.

Yesterday a friend of Mrs Antia’s told how people in her expat circle had become concerned after she failed to appear at parties and they could not contact her.

The friend, who did not wish to be named, said: ‘Sally disappeared off the scene a month ago and no one had any idea where she had gone.

‘She led an active social life and suddenly no one could get in contact as her mobile was switched off and there was no answer at her home. We assumed she might have gone back to England to visit. None of us had any idea she was in jail until we read about it in the papers.

‘She was in jail for 23 days before anyone could get help for her. Consequently she wasn’t represented in court a week ago, and didn’t have a lawyer to argue the case for bail.’

Pilot Mr Antia, from Lincoln, is believed to have told police that his wife was seeing another man before their divorce had come through – a crime in the United Arab Emirates.

Yesterday there was no answer at the couple’s £1million home where Mr Antia, 48, has been looking after the couple’s two daughters, aged 13 and 11, since his wife’s arrest.

The house is situated in a cul-de-sac on the exclusive Meadows estate, which is close to the Dubai Marina and popular with expat workers.

Neighbours were shocked to hear Mrs Antia was in prison. One said: ‘I can’t believe it. I haven’t seen her around for a while and often he’s away flying. We sometimes see them both with their children.’

Mr Antia, who works for the Emirates airline, was said to be distraught as he had never intended his wife to be imprisoned.

His lawyer, Alexandra Tribe, said: ‘He is horrified all this has come out and doesn’t want to comment. He wants to keep as much privacy as possible.’

Yesterday at their large Victorian house in Winsford, Cheshire, Mr Hawkins’s estranged wife Helen, 35, spoke for the first time about her husband’s imprisonment.

She said: ‘We are in the process of getting divorced but we still live together. It’s not as if he sneaked off without my knowing.

‘Of course I knew he was going over to Dubai. I don’t have a problem with it. I think this is the second time they have met. He has known her for about four years.’

Despite being told her husband could face up to 12 months’ imprisonment, when asked if she was going to visit him in jail, she smiled and shook her head, saying: ‘No.’

Mr Hawkins, 44, who has six children, married Helen in 2005 after getting divorced from his first wife. He met Mrs Antia through an internet auction, when he sold her some Turkish artefacts four years ago and kept in touch after discovering they were both Liverpool football fans.

The construction projects manager visited Mrs Antia after she invited him to Dubai – she has already admitted in court that she paid for his airline ticket.

Mrs Antia’s lawyer was only appointed on Friday and because it is the weekend in Dubai on Friday and Saturday was unable to visit her in jail.

Mrs Antia, who works for a corporate entertainment firm, is being held in the women’s section at the jail attached to Bur Dubai police station. Mr Hawkins is in the men’s section.

The couple, who had spent six days together, were arrested at 2.30am as they left the hotel. Police were lying in wait for them.

Mrs Antia was one of the so-called ‘Jumeirah Janes’ – expat wives who frequent Dubai’s shopping malls buying designer clothes, relaxing in spas, and holding drinks parties at their luxury villas. The name derives from the glamorous Jumeirah beach area.

The Antias have lived in Dubai for 14 years after leaving Hale, in Cheshire. They employ a live-in maid as a housekeeper, who can also look after the children, and a gardener looks after the grounds and swimming pool.

Under Emirates law, the maximum punishment for adultery is a year in prison followed by deportation.

Mrs Antia is accepting visits from her husband to keep in touch with her children.

Clouds over Dubai – Petitions – Demonstrations: Dubai Homeowners go on offensive

source TheNational

DUBAI // In an increasingly familiar display of discontent with the property market, two dozen residents of Discovery Gardens gathered yesterday to petition for more transparency and better property management services.

Homeowners in the community pay annual service charges of Dh30 (US$8.17) per square foot, among Dubai’s most expensive, but accuse its developer, Nakheel, of not fulfilling its building maintenance and service obligations.

Their complaints include broken door locks, frequently clogged toilets and unstable balconies, and slow repair service. Many also say they have not received apartment title deeds, which verify ownership, despite purchasing their units months ago.

“We want to make it very clear to Nakheel that if they don’t fulfil their agreement as to what is stipulated on their turnaround times for maintenance, then we want our money back,” said Michael Aldendorff, 39, an apartment owner in the 50,000-resident community who helped organise the demonstration.

“Either they serve us the next year for free, and they improve their maintenance substantially, or they give us back the money that we’ve already paid in maintenance fees.”

The group plans to get 400 signatures for two petitions to be delivered to senior officials at Nakheel and Tamweel, the country’s largest home lender by volume which has financed purchases at Discovery Gardens.

In the other petition, homeowners are demanding breakdowns of Dh32,000 in fees that have been added to their expenses but not clearly explained by Tamweel.

“Till now, I really don’t know which fees are for what – there’s absolutely no transparency,” said Doaa al Ghamrawi, 32, an Egyptian who purchased a one-bedroom flat financed through Tamweel.

Officials at Nakheel and Tamweel could not be reached for comment yesterday.

But in an e-mail sent on Thursday, a Nakheel spokeswoman said the responsibility for title deeds was not Nakheel’s but that of the building owner. “Nakheel, however, is assisting building owners in facilitating the registration of the titles with the Dubai Land Department,” she said.

She said the company had reviewed the existing service fee structure “to take advantage of recent reductions in cost of services” and that homeowners could expect a reduction.

Asked about the deficiencies in services alleged by residents, the spokeswoman said: “Nakheel is committed to providing the best possible service to all our customers. We have a 24 hour customer service call centre for residents, and we endeavour to address service requests in a timely manner.”

The spokeswoman, who declined to be named for unspecified reasons, did not give further details about the reductions.

Juergen Schmidhofer, a 41-year-old German flat owner in Discovery Gardens, said his maintenance and cooling fees were unjustifiably high, about Dh2,000 a month, for the quality of service he receives.

“Why don’t they use a normal electrical meter like they do in Germany to determine what you pay?” he said. “That would save us all money and energy.”

Meanwhile, Flo Weisweiler, 28, a German national who rents a one-bedroom flat in International City, said months of complaining by residents had essentially yielded nothing from Nakheel, the community’s developer. “We’re not asking them for miracles here,” he said. “We just want basic maintenance, security, proper paint on our walls.”

Hallways and façades in the 60,000-resident complex were crumbling and besmirched by dirt, he said, while odours from a nearby sewage-treatment plant continued to permeate the area. Municipal and federal rules were also not enforced, evidenced by the scores of labourers moving into studio flats or residents smoking in such communal areas as elevators or hallways.

“We told Nakheel that a lot of people smoke inside buildings, in the elevators, and that they set off alarms,” Mr Weisweiler said.

“We asked them to put up no-smoking signs, but they said they didn’t have a budget for that.”

In Jumeirah Lake Towers (JLT), Paul Vincent wonders why he and other homeowners are asked to pay high maintenance and service fees when basic amenities have yet to be built. Despite trying on several occasions to obtain a breakdown of the Dh25,000 in yearly fees, there has been no response from JLT’s master developer, Dubai Multi Commodities Centre (DMCC).

“You can’t go out in the night-time because there is no street lighting and no sidewalks,” said the 32-year-old Briton. “It’s still a construction site here – no supermarkets, no shops – you’re basically confined to your apartment.”

“We really don’t know what we’re paying for, so what we want to know is where this money is going, bearing in mind that we already pay electric and water separately. The only formal channels we have to communicate with officials in the development is what’s indicated on DMCC’s website.”

But Bryan Wilson, the executive director for property management at DMCC, said the company “had been completely transparent with all our fees.”

Some developers have launched programmes recently to improve customers service. Deyaar, which expects to deliver 3.6 million square feet of finished units in 2009, has introduced a newsletter for property owners and made its website more user friendly.

Still, many residents appear unappeased.

Softening rents have persuaded growing numbers to relocate to higher-end communities with better reputations in residential management. Others are pursuing a collective-bargaining approach, such as the Jumeirah Beach Residence homeowners group. They and other grassroots groups have banded together to call for transparency from authorities and more say over community management decisions.

Authorities have also sought to more thoroughly intervene in the ailing real-estate sector, most notably with the increasingly active role of Dubai Real Estate Regulatory Agency, or Rera. But falling property values and expected population declines, by as much as 17 per cent in Dubai this year, according to a March EFG-Hermes report, may require bolder intervention.

“My feeling is, looking forward, the Government is going to have to step in and take a bigger regulatory role in this market, because it has become uneven between different parts of Dubai,” said Hafed al Ghwell, the director of external affairs at the Dubai School of Government.

This may mean a painful but necessary break with Dubai’s long-standing preference for managing communities from a hands-off, private-sector-led approach, he said, mainly because “the private sector doesn’t run these things for any larger goals than making profit.”

“If you’re running your own company, you’re not really worried so much about the public good,” he said.

AL Fajer Properties Dubai Sheikh Maktoum bin Hasher Juma Al Maktoum

RERA Dubai freezes developer escrow accounts

source TheNational

May 28. 2009

The Dubai Real Estate Regulatory Authority (RERA) has frozen the escrow accounts of some property developers as it awaits assurances that construction is progressing and that all homes sold have been registered with the Dubai Land Department.

This is the latest measure by the authority to safeguard the interests of property investors as the market grapples with a shortage of lending and declining property prices.

Marwan bin Ghalita, the chief executive of RERA, said some developers needed to provide technical reports to the authority’s trust account department detailing the progress of construction before they can withdraw money from the accounts.

“There can be no withdrawal until they have completed the technical report,” he said.

“Payment needs to be linked to construction progress. They also need to prove to RERA that they have registered investors rights with the Land Department.”

Mr bin Ghalita would not say how many accounts had been frozen. RERA introduced the escrow account law in February last year.

Dubai: Petitions over Petitions – and no Response – The sheikhdom`collapsing property market

source MaktoobBusiness

British government is being asked to help UK investors in Dubai who fear losing millions of dollars in the sheikdom’s collapsing property market.

A group of investors based in the UK have sent a petition to Prime Minister Gordon Brown asking him to intervene in what they claim are “harmful real estate practices” in the United Arab Emirates.

“We as investors have recently discovered the blatant embezzlement of our money by unscrupulous developers,” the petition, seen by newswire Zawya Dow Jones, says. The petition was referred by Downing Street to the Foreign Office.

“We have been contacted by individual investors,” a spokesperson for the UK Foreign and Commonwealth Office told Zawya Dow Jones. “The FCO takes this matter seriously.”

A near 50 percent fall in real estate prices in some parts of Dubai has spurred a rash of increasingly ugly real estate disputes between developers and investors. The industry accounts for 30 percent of the emirate’s economy.

The Dubai Land Department estimates that British investors own property worth 4.7 billion dirhams ($1.3 billion) in the emirate. British buyers now account for 12 percent of international property investors in the emirate, behind Saudis and Indian buyers, according to regional investment bank EFG-Hermes.

The involvement of the British government on behalf of disgruntled property buyers will further damage the reputation of Dubai as it struggles to clean up its financial image and attract foreign investment that’s vital for its economy.

The Foreign Office spokesperson said that while the British government would advise investors on how to resolve disputes “ultimately this is a legal matter between the interested parties”.

Dubai’s Real Estate Regulatory Agency, the government watchdog, did not respond to written questions from Zawya Dow Jones, but Thursday said it plans to set up new “real-estate communities” to increase transparency. 

British national Nick Jasani is one of a group of investors who is lobbying parliamentary representatives to put pressure on Downing Street to intervene in the rising number of disputes on their behalf.

Jasani, who bought a commercial unit from a developer in Dubai’s Business Bay district for 2 million dirhams in early 2007, is worried because construction at the project hasn’t started, even though he’s already paid 640,000 dirhams or 30 percent of the unit’s value.

He said the Dubai-based developer is still demanding payment installments even though they’re not working on the project.

A letter seen by Zawya Dow Jones and sent by a number of individual investors to Members of Parliament states that “even though projects have no hope of going ahead due to the current financial climate, the money (investors) they have put down may not be refunded.”

As the bottom falls out of Dubai’s once-soaring property market, developers are scrambling to respond. Many are being forced to cancel or delay projects amid falling sales and property prices.

Last month, a report by investment bank Morgan Stanley said the United Arab Emirates is delaying or canceling real-estate projects worth more than $260 billion. An earlier HSBC report said Dubai is delaying or canceling almost 60 projects worth $75 billion.

Amid growing uncertainty about whether they’ll see their money again, investors are organising themselves to take on the emirate’s sometimes unscrupulous developers and convoluted real estate regulations.

This week a group of more than 100 investors delivered a petition signed by more than 350 investors to Dubai developer Nakheel’s office urging the firm to reschedule payment plans for villas on Palm Jebel Ali because of delays.

This followed a petition to Emaar Properties, the Middle East’s largest developer, requesting the cancellation of three of its projects.

Nakheel did not respond to questions from Zawya Dow Jones.

“There are certainly a number of investors who seem to have claims with merit. Others simply have been caught out by a falling market and insufficient contractual protection,” said Matthew Hooton, head of real estate in the Middle East for law firm Ashurst.

Al Fajer Properties – Comment of the Day

To 7Stars from Court Expert May 26. 2009

1. Under UAE Law, Article 69, the presiding Judge MUST appoint an expert/auditor to look into the historical records of the company from the first day of establishment. The expert will rely on evidence and facts only. It is a very simple task. Any party who is afraid of the truth will try to block the court from appointing an expert auditor to examine the company account.

2. In this case, where the Iranianian Plaintiff had been detained illegaly for a period of 60 days without any charges, and in violations of a series of UAE Laws his rights have been deprived by the authorities, which indicate the facilitating the take over of the company by the sheikhs raises serious questions about the involvement of the various authorities as potential partners in crime.

3. The current false claims filed by the sheikhs in police are a tactic used to mislead the public/ court and to try to pressure the judge to close the lawsuit against the sheikhs. Although sometimes these tactics work, but normally it can backfire especialy if the other party can provide evidence that it is a false case. Which will result in a criminal prosecution of the sheikhs for creating false cases.

4. In my 25 years experience of complaex financial cases where I have been appointed as an expert , I can give my personal view that if FOR ANY REASON the judge does not appoint an auditor expert with a crystal clear mandate to look into the company records and determine who has invested capital in the company and what is the contribution (IF ANY) of the sheikhs, and hence determine who is the true owner of the company. Then I can conclude that the sheikhs have used their influence to close the case.

CONCLUSION: IF THE JUDGE DOES NOT APPOINT AN EXPERT AUDITOR AS PER THE LAW, THEN DUBAI JUSTICE SYSTEM IS QUESTIONED AND THE RULE OF LAW IS NOT APPLIED TO SHEIKHS.

Al Fajer Properties Sheikh plans counter claim

source Zawya (AFP)

DUBAI, May 25, 2009 (AFP) – A Dubai sheikh being sued by an Iranian businessman over 1.9 billion dollars in property investments plans to file a counterclaim demanding compensation for losses, his lawyer said on Monday.

Shahram Abdullah Zadeh, the former chief executive of Dubai-based developer Al-Fajer Properties, filed the initial lawsuit against the firm and  Sheikh Hasher Maktoum bin Jumaa al-Maktoum, in February, claiming he was the sole investor and real owner of the company.

“We have requested time to file a counterclaim to demand compensation from Shahram Zadeh,” lawyer Samir Jaafar told AFP following a fourth hearing in the case on Monday.

Zadeh accused the defence of “running away from responding to the lawsuit” against Sheikh Hasher, a brother-in-law of Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum.

He said Sheikh Hasher was registered as owning Al-Fajer PropertiesAl-Fajer Properties
Al Fajer Properties, because being a foreigner he could not register it under his own name.

He told AFP his defence had requested the appointment of an auditor to trace capital inflows into the company, and said despite claims that he was just an employee he never took a salary or had an employment contract.

“He was supposed to earn a share of profits made under his management. But the company did not make any profits,” Jaafar responded.

Al-Fajer Properties, which since February 2009 has been run by Sheikh Hasher’s son, Sheikh Maktoum, filed two complaints with Dubai police in February and March, accusing Zadeh of embezzling 114 million dirhams (31.06 million dollars).

A representative of Zadeh’s lawyer, Salim al-Shaali, called the two claims false and said a complaint about them has been lodged with the public prosecution.

Zadeh is demanding the recovery of all assets of Al-Fajer PropertiesAl-Fajer Properties
Al Fajer Properties, estimated in the lawsuit at seven billion dirhams (1.9 billion dollars).

The judge adjourned Monday’s hearing to June 17.

Al Fajer Properties – Dynasty Zarooni – Investors Petition – 500 signatures

Al Fajer – Ebony & Ivory – Petition – Ordered to Pay 500 Million

Dubai and Abu Dhabi: Be careful with cheques, police warn

source TheNational 
May 25. 2009

Bank customers in UAE must be careful while writing and signing cheques to avoid penalties that can include jail, according to Abu Dhabi Police.

Speaking yesterday at a banking workshop, Lt Col Abdulwahab al Hosani, head of investigations at the capital police section, said banks often make customers sign blank cheques when they apply for loans in a bid to speed up applications.

“Some people are in a hurry to get the loan to buy a car or property, so they sign without even knowing the conditions”, said Lt Col al Hosani. “Some banks would then issue monthly cheques for that person, which he or she cannot pay, and result in a number of bouncing cheques. A person could go to jail because of bounced cheques.”

Ismail al Bloushi, a senior official at the UAE Central Bank, said there were fewer returned cheques this year. When the economy was booming people used cheques more.

In the past four months, out of 9,742,073 cheques issued, almost six per cent were returned, less than last year, police say.

The bank will try to resolve the issue if a cheque bounces, and refer it to police if they fail. The police may also try to find a solution before going to court.

The Central Bank closes accounts with more than four returned cheques a year, and keeps a blacklist of customers with a history of bouncing cheques.

Britons face losing savings as Dubai property market collapses

source Telegraph UK  23 May, 2009

Britons who invested hundreds of thousands of pounds in unbuilt property during Dubai’s boom years face losing the money after a collapse in the market.

An 800-strong group of investors, from individuals who put deposits on holiday flats to property brokers, says hundreds of millions of pounds is at risk.

Work has slowed or stopped on swathes of building sites, including on a second “Palm Island”. The city was planning a series of artificial peninsulas in the shape of palm trees packed with seafront holiday villas, but only one is finished. 

Of all the world’s property crashes, Dubai’s has been among the most spectacular. According to an estimate from Morgan Stanley, projects worth £165 billion have been delayed or cancelled across the United Arab Emirates. Prices in Dubai have fallen by more than 40 per cent since September.

As prices soared, many investors bought off-plan, either because it was cheaper, in the case of small-time buyers looking for a home in the sun, or because they could “flip” or sell on for a quick profit without ever having to pay the full value.

Investors on the end of a chain of “flippers” have been hit particularly hard as prices fell while building was put on hold. But even those who bought from developers now face the dilemma of whether to keep paying or cut their losses.

The situation has been made worse by local authorities which are revising rules on repaying money for property bought “off-plan” which could mean investors cannot get their full investment back.

Adam Tordoff, a self-employed businessman from Sheffield, has already used his life savings to pay £150,000 towards a £500,000 villa and is facing demands for further instalments even though it has not been built.

“We just want to get our money back and get out of it,” he said. “The next best thing would be to have something actually built rather than the money going into thin air.”

Nick Jasani, from St Albans, bought two shops off-plan as an investment, paying a deposit of £100,000. He believes there is little chance of them being built but the project has not been cancelled enabling him to reclaim his money.

“I am totally fed up,” he said. He has written to the British government asking it to intervene.

The Dubai Real Estate Regulatory Authority has drafted new rules under which investors who pull out of contracts are refunded on a sliding scale, depending on how much has been built. But developers are still entitled to 30 per cent of the money paid even if nothing has been built at all, giving them an incentive to claim projects are still viable.

Nigel Knight, a spokesman for the investors’ group, said its members had bought property valued at around £1 billion, of which almost a fifth had already been paid over.

RERA is preparing further revisions. It may also order 27 projects to be cancelled with full refunds – if the money is left.

In some cases, deposits were used to buy the land, a practice now banned, while Mr Knight alleges some developers were using money paid down for one development to buy land for new projects.

RERA did not reply to questions but Alexis Waller, a lawyer at the Dubai offices of legal firm Clyde and Co, said it was trying to strike a balance between developers and purchasers.

She said many investors signed contracts which did not specify what would be built when. By law developers have to start work within six months of registering projects, but many investors signed contracts obliging them to keep up instalments even if developers failed to do so.

“Investors signed up to payment schedules that were in no way linked to milestones,” she said. “That’s how the market worked here, and purchasers didn’t query it because they were making so much money from property. It’s become an issue because they are no longer making money.”

Al Fajer Properties – Dynasty Zarooni – Ebony Ivory case – Dubai Court grants bail to Kabir Mulchandani

source GulfNews May 21, 2009

Dubai: Dubai Public Prosecution has granted bail to a senior executive of a real estate company who is being interrogated over alleged financial irregularities, Gulf News has learnt.

“The Dubai Public Prosecution granted bail to Dynasty Zarooni Real Estate’s Chairman Kabir Mulchandani. yesterday, but the interrogation continues over his alleged fraud and swindling charges,” a senior public prosecutor told Gulf News on Thursday.

Lawyer Eisa Bin Haider confirmed that his client was released on bail on Thursday.

The Case Dynasty Zarooni – Al Fajer Properties
Jumeirah Business Centre 7,8,9 -
Ebony Ivory Towers – Jumeirah Lake Towers

The Public Prosecution has been questioning Kabir Mulchandani., an Indian, and the firm’s president, an Emirati national, Hilal Al Zarooni, over alleged fraudulent charges.

Salem Al Sha’ali, the legal representative of investors who were reportedly swindled, said earlier some of his clients lodged nearly 30 complaints worth millions of dirhams against the suspects.

More about this case Dynasty Zarooni - Al Fajer Properties ( Jumeirah Business Centre – complaining investors) from the past

Dubai courts are suddenly finding themselve flooded with cases

source KippReport

Thanks to the credit crunch the number of trade disputes at the Dubai Chamber of Commerce and Industry (DCCI) doubled in April 2009, reports The National. And the Dubai International Arbitration Centre (DIAC) received 40 trade dispute cases last month, compared with 20 a month earlier, taking the total number of cases in the first four months of the year to 80.

According to the DCCI, there were only 28 arbitration cases in the whole of 2008.

The DCCI legal services department received 156 cases of business mediation in April 2009, and 322 cases in the first four months of this year as compared to 182 cases for the same period last year, an increase of 80 percent.

The DIFC (Dubai International Finance Centre)-LCIA (London Court of International Arbitration), a joint arbitration centre formed in 2008, has also reported seeing an increase in the number of arbitrations in 2009. It has confirmed that it is increasing the number of case handlers to deal with the increasing caseload.

But it’s not just the arbitration courts which are being inundated; 520 cases have also been registered with Dubai’s Property Court this year. Chief Judge Mohammed Yousuf Sulaiman, deputy director of Dubai Courts, told Emirates Business last week that the court has already passed judgment on 145 property-related cases.

The Dubai Property Court was set up in September 2008, and will be getting a mediation centre soon. According to Sulaiman this will reduce the number of cases going to court. “In the mediation centre, there will be a panel of real estate experts who will screen cases and try and resolve them before they are passed to the court,” he said.

According to a recent report from Norton Rose, an international legal group, over 1,000 disputes have also been lodged with Dubai’s Real Estate Regulatory Agency (Rera) in relation to delayed or cancelled projects, and the centre reportedly resolved 95 cases during March 2009.

And it seems the number of cases is set to rise further.

The report says that in the past, contractors and consultants were reluctant to take action against developers in the region for two reasons. Firstly, the major developers in Dubai had a large number of significant projects on their books in which contractors were keen to remain or become involved. And secondly, many large developers are wholly or partially state-owned, and there was a perception that taking action against them might limit a company’s future business opportunities in the region.

But now, following numerous project cancellations and suspensions, cash-strapped sub-contractors are being forced to take action against main contractors in an effort to recover outstanding sums.

And, with investors and developers both defaulting on agreements, going to court seems like the only way to resolve the differences.

The rising number of legal cases will prove to be an acid test for Dubai’s legal institutions and frameworks, says Norton Rose, particularly with regards to the speed and efficiency of the dispute resolution processes, and in respect of the “effectiveness and enforceability of the judgments or arbitral awards obtained as a result of those processes.”

Will Dubai be able to pass the test?

Middle East’s rich and powerful may not be beyond the law any more

source Times UK May 22, 2009

When a crime is committed in the Middle East and nobody is punished, invariably the explanation is that the rich and powerful have proved once again that they are beyond the reach of the law.

For years the shady activities of Gulf sheikhs, powerful ministers and rich businessmen have been swept under the carpet. But something profound could be changing in the Arab world.

Thanks in part to the advance of technology, satellite news channels and internet blogs, the elite are no longer shielded from public scrutiny. Now they may also have to answer to the law.

First was the case of Sheikh Issa bin Zayed al-Nahyan, a brother of the President of the United Arab Emirates, who was filmed apparently torturing a business associate. The footage was smuggled out of the country and aired on television last month. The incident caused a diplomatic spat with Washington and the sheikh was detained while the authorities investigated.

Now we have the case in Egypt of Hisham Moustafa, a businessman and member of Cairo’s elite being sentenced to death for ordering the murder of Suzanne Tamim.

The actions could give renewed hope to others seeking justice in the region, like the family of Martine Vik Magnussen, the Norwegian student who was murdered in London last year. Police want to question Farouk Abdulhak, the son of an Arab billionaire, who left Britain soon after the murder in Mayfair and is now in Yemen.

Questions and Answers with the Dubai Land Department

Source Zawya

There has been considerable debate in the real estate sector following the issuance of Law No 9 of 2009 amending Article 11 of Law No 13 of 2008 on the Interim Register in the Emirate of Dubai . This law concerns specifically the issue of termination of sale and purchase agreements (SPAs) for off-plan units and the damages payable.

Mohammed Kamal, Head of Real Estate-Middle East at Lovells’ Dubai office, recently met with Emad Farouq, Senior Legal Counsel at the Dubai Land Department (DLD)
and Real Estate Regulatory Authority (RERA).

Below is a summary of the question and answer session with Emad Farouq.

Law No 9 of 2009 is now in force. Can you please explain the main implications of this law and how it affects the termination of SPAs for the sale of off-plan units?
This law seeks to impose a new regime for the termination and payment of damages for SPAs for the sale of off-plan units which will apply retrospectively to all prior SPAs. It will amend the provisions of Article 11 of Law 13 which previously stated that upon termination the maximum damages payable to a developer would be 30% of monies paid to date.

The law will also override the administrative circular which was issued by the DLD
in 2008.

Under Law 9, the developer will be entitled to damages strictly according to the progress of construction for the project regardless of what has been agreed in the SPA. There are 5 categories of damages ranging from no damages (i.e. developer will refund all monies received), in cases where RERA cancels the developer’s project, to entitlement to retain all monies received and recover any shortfall if the developer has completed 80% or more of the construction. The intention behind the law is to create a balanced and fair mechanism for the termination of SPAs and assessment of damages. The vast majority of SPAs and arrangements in the market are either vague or unfair, or both. Therefore it was absolutely essential to intervene to provide certainty in the real estate sector going forward.

Can you explain the developer’s obligations under Law No.9?

Generally the developer is obliged to issue notices for termination of SPAs through the DLD
will assess the merits of the case and then decide on whether the developer is justified in terminating the SPA and will also assess the status of construction of the project in order to identify which category of damages will apply.
It is important to note that although a developer may be entitled to resell a unit, it must account to the purchaser for any surplus monies it receives once it has received any damages it is entitled to i.e. the developer cannot be unjustly enriched.

Under Law No 13 of 2008, there is a requirement for all sale and purchase agreements to be registered by 30 October 2008. Has this deadline been extended?

Yes, the deadline has been extended but will be confirmed through the Executive regulations which are being reviewed. Currently, the DLD will allow registration of SPAs after the deadline, provided there is a valid reason for the delay.

What is the Land Department’s view on the recent Property Court judgment concerning the master developer, Mizin?

In this case the Property Court (which is a division of the Dubai Courts) considered an agreement which was not registered on the interim register under Law 13 of 2008 as null and void and ordered Mizin to refund all monies paid by the purchaser. It is clear that the Property Court has taken a literal interpretation of Law 13 and in this case has made a decision which is in favour of the purchaser.

The DLD considers the decision to correspond with our understanding of the interpretation and application of Law 13. In particular, it confirms that if an agreement is not sufficiently registered under the law, then it will be considered null and void and is not enforceable as a binding agreement. Registration is conclusive evidence of rights relating to property, whether they are registered in the real register or the interim register.

Does Law No 9 cover terminations of SPAs for both sales of plots and off-plan units?

Law 9 is intended to cover sales of off-plan units only. SPAs for plots will not fall under the categories for damages under Law 9 and the parties will need to rely on the provisions related to termination and damages under the SPA and, if necessary, issue proceedings in the Property Court to settle any disputes.

Can you confirm what will be covered under the Executive Regulations following Law No 9?

The Executive Regulations under Law 9 are intended to provide guidance on the procedures and practical application of Law 9, amongst other issues. The Regulations will predominantly cover the procedure for termination of SPAs and payment of damages. They will also confirm the rights and obligations of a developer when reselling a unit upon termination and refunding any excess monies to the purchaser. The Regulations will also cover the grounds for cancellation of projects by RERA.
RERA may also request an independent third party expert report to assess the status of construction for a project.

What other laws and regulations can we expect to be issued in the coming months by
Dubai Land Department and RERA? e.g. Strata law regulations
The draft Strata regulations are being considered and will clarify the status of master community declarations, owners’ associations and the management and operation of common property.

We also expect further laws and regulations from DLD/RERA concerning Real Estate Investment Portfolios, Trust Law, Granted Land and Land Development laws and regulations on the restriction on developers collecting no more than 30% of the purchase price before commencement of construction and the requirement for developers to have paid for the land and obtained title and completed 20% construction before it can sell units off-plan.

The future…

Law 9 has been much anticipated by the real estate market and it now paves the way for a swift resolution to property disputes. The Executive Regulations must ensure that a fair balance is created between the rights of the developer and the purchaser and it will be crucial that the Property Court demonstrates consistency in the application of Law 9. Recent reports in the media have indicated that approximately 520 cases have been registered with the Property Court in 2009 and we expect many more to follow. It is expected that the Property Court will also be supplemented with a mediation centre in order to reduce the number of cases.

Lovells will remain at the forefront of new developments in the real estate sector and we aim to provide you with further updates on this topic as more information is available.

About Emad Farouq
Emad is the Senior Legal Counsel at the Dubai Land Department. Previously, he spent 15 years with the UAE Federal Chamber of Commerce and Industry. Emad has played a significant role in the last 5 years in the development of property legislation and regulations in Dubai. In December 2008, Emad was awarded “Best Government In-House Counsel” by the Dubai Corporate Counsel Group.

About Mohammed Kamal
Mohammed is the Head of Real Estate for the Middle East in Lovells’ Dubai office. He has been based in the UAE for several years and has been consistently involved with some of the largest real estate deals and projects in the region. Mohammed is recommended as one of the leading real estate lawyers in the region in Who’s Who Legal.

For further assistance please contact Mohammed Kamal, Head of Real Estate-Middle East.

© Lovells 2009

ACI – Alternative Capital Dubai Invest Fonds in Trouble

source DieWelt Germany May, 20. 2009

Dubai – Vier Dubai-Fonds des Gütersloher Initiators Alternative Capital Invest (ACI) sind offenbar in Schieflage geraten. Die Fonds II bis V könnten vorerst keine Ausschüttungen leisten, berichtet der Branchendienst Fondstelegramm.de unter Bezugnahme auf ein Schreiben der ACI an ihre Anleger. Zwar sei ein Verkauf der Fondsimmobilien vertraglich vereinbart. Jedoch habe der Erwerber entgegen einer früheren Zusage seiner Bank keine Kredite erhalten. Aus unternehmensnahen Kreisen wurden die Informationen der WELT gegenüber bestätigt. ACI-Geschäftsführer Uwe Lohmann war bis Redaktionsschluss nicht für eine Stellungnahme zu erreichen.
Mit einer Investitionssumme von insgesamt 474,5 Mio. Euro ist ACI nach der Marktstudie der Beteiligungsmodelle von Feri EuroRating der größte Anbieter von Dubai-Fonds in Deutschland. Auf ihrer Internetseite beziffert die Gesellschaft ihr Gesamtinvestitionsvolumen im Wüstenstaat sogar mit “über 550 Mio. Euro”.Investoren hatten in den vergangenen Jahren für Milliardenbeträge Bürotürme und Hotels in Dubai errichtet und damit eine gewaltige Spekulationsblase geschaffen, die mit der Finanzkrise platzte. Verbraucherschützer hatten schon im Jahr 2005 vor Engagements im Immobilienmarkt des Öl-Emirats am Persischen Golf gewarnt. rhai

_____________________

see also:

Mehrere Dubai-Fonds in Schieflage?

Deutsche ACI vertreibt Fonds seit 2008 auch in Österreich

Niki Lauda Tower , Boris Becker Tower, Michael Schumacher Tower, Dubai Star Tower and others by ACI Robin Lohmann, Dubai

Dubai Court to prosecute former State Minister in Deyaar case

source GulfNews Dubai

Dubai: A court is scheduled to prosecute on Sunday a former minister for reportedly abusing his powers as Deyaar’s board director and misappropriating Dh56.6 million, Gulf News has learnt.

The 52-year-old ex-state minister, M.K., has been charged with causing damage to Dubai Islamic Bank (DIB) and Deyaar worth Dh56.6 million and will be tried before the Dubai Court of First Instance.

The Dubai Government holds a 30 per cent stake in DIB; and the bank holds a 45 per cent stake in Deyaar.

Deyaar’s former chief executive, a 43-year-old American, Z.S., will appear before the same court for allegedly receiving six million Deyaar shares, 380,000 Tamweel shares, 145,000 DIB shares and Dh17.9 million in cash as bribes for giving M.K. discounts and benefits worth Dh56.6 million from Deyaar.

Gulf News obtained a copy of the arraignment sheet in which the Public Prosecution charged M.K. with abusing his authority and unlawfully allowing Z.S. to misappropriate Dh53.5 million from Deyaar and Dubai Islamic Bank.

The Public Prosecution also charged Z.S. with aiding and abetting M.K.

The American has been additionally charged with abusing his authority as CEO and asking Dh500,000 from a businessman for selling property units worth Dh9.6 million.

Deyaar’s former operations manager, a 40-year-old Indian named J.D. who is at large, and Z.S. were jointly charged with accepting Dh20 million from a company for awarding it tenders to execute some Deyaar projects.

The murder case Suzanne Tamim Dubai – Death sentences for Suzanne Tamim murderers

source BBC UK

An Egyptian billionaire and former top political figure has been sentenced to death in Cairo for the 2008 murder of Lebanese pop star Suzanne Tamim.

Hisham Talaat Moustafa was found guilty of paying $2m to an ex-policeman to kill the singer. The killer Muhsin Sukkari was also sentenced to hang.

Ms Tamim reportedly broke off a secret love affair with Moustafa months before she was stabbed to death in her Appartment Dubai Jumeirah Beach Residence

The tale of sex, politics, money and show business gripped the Arab world.

The courtroom descended into chaos after the judge read out a short statement and ordered the sentences referred to the religious authorities for confirmation – as is normal in Egypt.

The defendants looked shocked at the verdict and relatives of Hisham Talaat Moustafa jostled with reporters to prevent them photographing his reaction.

Female relatives burst into tears and one of them fainted in the pandemonium.

Lawyer Samir Shishtawi called the verdict “severe”, adding: “I want to assure Talaat Moustafa’s family that this verdict will be overturned by the appeals court”.

Members of the Egyptian elite are often viewed in the country as being above the law, and there was massive public interest in the case.

The Dubai authorities applied such pressure on the Egyptians to bring the case to trial that he was eventually stripped of his parliamentary immunity.

But reporting of the case was banned in Egypt after the opening statements – a ruling which brought sharp criticism from the opposition.

Reporters from Tamim’s home area in the Lebanese capital Beirut said her family was “grateful for the verdict”.

Suzanne Tamim had risen to stardom throughout the Middle East as the winner of a pop idol contest in Lebanon in 1996.

But her career was marred by reports of a troubled private life.

Dubai Ruler replace finance chief – Top Dubai official defends decision to replace finance chief

source Arabian Business

The surprise dismissal of Nasser Al Sheikh as the emirate’s finance head on Monday triggered questions among some investors about Dubai’s economic future.

“The government is firmly committed to sustainable fiscal policies and to adopt actions that are appropriate for the current circumstances taking into account the scope of the global crisis, meeting Dubai’s financial obligations and future development requirements,” said Mohammed Al Shaibani, aide to Dubai’s ruler, in a statement issued late on Tuesday.

Al Shaibani is director of the office of Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and vice president and prime minister of the UAE.

Al Shaibani expressed his support for the new finance director, Abdul Rahman Al Saleh, as “the right man to lead the next stage of managing the economic situation”.

Saleh previously held a top position at Dubai’s customs authority and was in charge of the now shelved VAT plan.

The timing of the surprise leadership switch comes just three months after the Dubai government launched a $20bn bond programme, to ease liquidity difficulties at a number ofgovernment-related entities (GREs).

The emirate has said it has outstanding debt of around $80bn.

So far more than 50 percent of a first $10bn tranche of the bond, which was bought up by the UAE Central Bank, has been distributed to GREs, such as the property developer Nakeel. 

The second $10bn tranche is due to be released by the end of the year.

During his brief tenure, Al Sheikh earned a measure of respect from investors as head of the department for his efforts to navigate the difficulties created in the emirate as a result of the global economic crisis.

In his new position, Al Sheikh will serve as an assistant to the director of the ruler’s court for foreign affairs.

He also holds leadership or positions at a number of important Dubai companies. (Reuters)

Dissent upsets ruler’s court for Dubai investors

source FinancialTimes

“We know the company needs the money – but we need it, too.”

That was the refrain of one investor, summing up the attitude of many, as shareholders staged an unprecedented walkout at the annual general meeting of Dubai’s largest real estate company this month.

Emaar’s AGM has always provided fireworks, even during the good times when property values were rocketing. But with the credit crunch having demolished the real estate market, shareholder after shareholder grabbed the microphone to plead for a dividend payout.

The background to this is simple: Dubai has gone from gilt-laden boom town to debt-ridden globalisation victim in the space of only six months. The AGM offered Dubai’s citizens a rare outlet for public dissent in a country where political parties are outlawed and rallies require government approval.

The meeting, held in a hall usually reserved for trade exhibitions, was a corporate version of the ruler’s court – or diwan – where the emirate’s leader traditionally heard petitions by the clans and families allied to him.

Al Fajer Properties Case Comment of the Day

Comment of the day – to Al Fajer Properties by Journalist 2009

A FRAUD PAR EXELLENCE

Al Fajer Properties: FORCING ( Extort) an investor to sign a document and a unit ( Apartment)which is not existing in the way like describted in the letters of Al Fajer to this purchaser .

This acts happen in January 2008 and have been enforced (  after this email (January 2008, shown below)) again with extortion against the purchaser by Al Fajer Properties under the so called “New Management” in March 2008 ! Al Fajer Properties is holding until today( 2009) the 45 % payment made by the purchaser directly to Nakheel until mid 2006.

Al Fajer Properties terminate the rights of this investor in March 2008, which the purchaser several times rejected until today, than they start to talk again with him, after he didnt agree to a next taken agressive extortion by them, they start again to terminate his rights – this happen in 2008 – 2009 – not under the former CEO Zadeh, this happen in a direct way by Maktoum Hasher Maktoum over an english lawyer.
To force an purcahser who bought an APARTMENT in an RESIDENTIAL TOWER ( PLOT 3) – in which it is cle since a long time by the plans of Al Fajer ( but this was never uncovered to the purchaser) , that this RESEIDENTIAL BUILDING is not RESIDENTIAL – it is 100 % COMMERCIAL – to say it short – to force somebody to agree to a contract in which an object is mentioned which will never exist : How do you call an act like this ?

And using this not agreeing as the reason to terminate the rights of the purchaser – who hold offical confirmations from DMCC in which everything is very clear mentioned  – how do you call this ?

An email from Al Fajer Properties to this victim left from the former Falcon Tower , Plot H3, once  original purchased at Nakheel in 2005, transfered by DMCC in 2006 to Al Fajer Properties with the clear contractual agreement betweeen DMCC and the purchaser, that Al Fajer Proeprties will deliver an APARTENT in A RESIDENTIAL TOWER ( PLOT H3) JLT, like once purchased at NAKHEEL in 2005.  “NOTHING will change to the once original Purchase” ! … Completion 2008, crytsal clear lake view, 100 sqm luxury apartment – once named and launched by Nakheel as Falcon Tower Plot H3 , Jumeirah Lake Towers !!!!!!

Those victims of the Al Fajer game never hold a so called signable Contract in their hands. It was a Draft full of mistakes and blanks, with no floor plan with no attachments about the apartment…. only an inclomplete draft …. on which they forced ( extort)  them to agree and sign by writig them  the following email , early 2008
___________________________
email: January 2008 ( an email full of lies !!!!!!!)
Dear Mr ……..

Thank you for your email dated 31 January 2008 in relation to the typing error on your statement.  I have pleasure to attach an amended statement for your records which clearly shows your funds have been assigned to your unit on Plot H3.  Please be advised that despite the error showing the name of the tower, you have and will remain in Plot H3, in the same floor, in the same unit, as per the contracts in your possession.

I would also like to apologise for the delay in responding to your email 23rd January 2008, however this was due to the fact that this was incorrectly addressed to sharam@hhfajer.ae, instead of shahram@hhfajer.ae.   For all future email correspondence, we would be grateful if you could please send directly to my email leighjones@alfajerproperties.ae to ensure a prompt response.
Whilst writing, I would like to draw your attention to our email dated 17 January 2007 (copy attached) as we have still not received a response nor the required documentation.  As discussed, we are still awaiting your formal agreement to proceed with the contract for the Apartment in Plot H3 – Unit …, where we had provided an extended deadline for return of 24 January 2008, as these contracts have been in your possession since October 2007.

As a gesture of goodwill, we would like to hereby once again extend the deadline of 5 days from the date of this email (namely Tuesday 5 February 2008).   Unfortunately failure to provide the required documentation and agreement to proceed by this date, will be taken as your decision not to proceed with the purchase, whereby we will organise the immediate refund of your original booking deposit together with the cancellation of your rights in the property.
For the avoidance of doubt, we are continuing to act in good faith by once again extending deadlines, but cannot continue without the signed contracts being returned.

I trust the above answers your queries in detail and I look forward to hearing from you shortly, however in the meantime, please don’t hesitate to contact me directly should you require any further clarification or assistance.

Kindest regards

Leigh Jones Al Fajer Properties

Al Fajer Properties – Dubai Court Case – Lawyer rubbishes lawsuit against Dubai sheikh

source BusinessMaktoob and  Zawya

Dubai Monday, May 04, 2009

The defence lawyer( Samir Jaafar) for a Dubai Sheikh ( Hasher Maktoum bin Juma Al Matoum, brother in law of H.H. Sheikh Mohammed bin Rashid Al Maktoum) being sued by an Iranian businessman over $1.9 billion property investments  on Monday rejected the lawsuit as baseless.

“All his allegations and the sums that he claims to have pumped into the company are unfounded,” lawyer Samir Jaafar told news agency AFP after the third hearing in the case.

Shahram Abdullah Zadeh has filed the $1.9 billion case against Sheikh Hasher Maktoum bin Jumaa Al-Maktoum and the Dubai-based real estate developer Al-Fajer Properties.

Zadeh insists he was the real owner and sole investor in Al-Fajer, which is registered under the name of Sheikh Hasher, a brother-in-law of Dubai’s ruler, Sheikh Mohammad bin Rashid al-Maktoum.

“There are surprises in the documents that we have presented to the court which will turn the case upside down,” Sheikh Hasher’s lawyer Samir Jaafar said, declining to elaborate.

“We believe that the lawsuit will be rejected after the court goes through the documents that we have presented,” Jaafar added.

Legal sources close to the case, asking not to be named, said the defence has charged that the sums which Zadeh says he invested in the company were in fact the “company’s money that he misused to appear as if it was his own”.

Zadeh, for his part, demands the “recovery of all material assets of Al-Fajer Properties“, according to legal documents obtained by AFP.

These include liquid assets and property, which are estimated at 7 billion dirhams ($1.9 billion), and 9 percent interest since the suit was filed.

His lawyer Salim al-Shaali, who asked the judge for time to study the defence document, said that at the next hearing on May 25 he will ask for an auditor to be appointed to look into the company’s accounts.

“The expert would decide who pumped capital into the company and … whether the defendants paid any money,” he told AFP.

Zadeh charges Sheikh Hasher made no investment in Al-Fajer and that he acquired the licence under the sheikh’s name only because Emirati law does not allow non-Gulf citizens to register real estate firms under their own names.

“For every dirham that Sheikh Hasher can show the court he has invested in Al-Fajer Properties, will give him the company and an extra $10 million bonus,” Shahram Zadeh told AFP after the latest hearing, which he did not attend

Shahram Zadeh said he started up the company from scratch, pumping in cash “as and when the company needed”, and that he only withdrew part of his initial investments after the company expanded from property sales.

“The Sheikhs claim I was an employee,” said Zadeh.

“My question to the court is what employee (can be) the sole investor, work for four years with absolute single authority signing billions of dirhams on cheques, contracts … but work without a salary or an employment contract?”

In addition to Sheikh Hasher, Zadeh is suing his daughter, Sheikha Maryam, a partner in the company, and son Sheikh Maktoum bin Hasher Juma Al Maktoum, who was made president of Al-Fajer after Zadeh was sacked in February.

Zadeh said he was detained by Dubai police after he was sacked and then held without charge for 60 days, and that his passport was confiscated and is still being held.

“I still don’t know why I was arrested,” he said.

The case comes as several executives from high-profile Dubai firms are being held on suspicion of embezzlement and as the once-booming regional business and tourism hub struggles to stave off the impact of the global economic crisis.

Dynasty Zarooni

Al Fajer Properties

GulfNews  The first report about this case in the local UAE press

„Folter geht uns alle an“ – German Press – Torture – Issa bin Zayed al Nahyan

source German Press Merkur

Dietramszell , Germany, 18.05.2009

Mit Applaus ist am Sonntag die Predigt von Pfarrer Franz Burgey quittiert worden. Er hatte die Machenschaften von Skeikh Issa bin Zayed Al Nahyan kritisiert.

Die Kirchgänger beklatschten die Stellungnahme des Ortsgeistlichen von Lochen und Linden, der sich ausdrücklich von den Machenschaften von Prinz Issa Bin Zayed al-Nahyan distanziert hatte.

Pfarrer Burgey, emeritierter Professor und Hobby-Historiker, ist bekannt für seine tiefschürfenden Predigten. Gestern nutzte er die Gunst die Stunde, um manchen Stammtischparolen eine klare Absage zu erteilen. Immer wieder wird in Dietramszell argumentiert, der Scheich sei nun Mal aus einem anderen Kulturkreis. Das Sprichwort „andere Länder, andere Sitten“ ist nach Burgeys Worten aber „völlig unzutreffend“. Unter Berufung auf islamische Gelehrte sagte der Ortsgeistliche: „Mord, Blutvergießen und das Stiften von Unheil, Unordnung und Zerstörung gelten als schwere Verbrechen. Niemand hat das Recht, Leben und Eigentum anderer Menschen zu schädigen oder wegzunehmen.“

Selbst wenn Mordversuch und Folter in anderen Ländern erlaubt wären, sagte Burgey, „erwarten wir von einem Mitbürger, der hier in Deutschland unter dem Schutz der deutschen Gesetze lebt, dass er sich auch anderswo entsprechend benimmt, sonst ist er als Nachbar nicht tragbar“. Landesweit sei mit Empörung aufgenommen worden, dass Dietramszeller die Folterungen mit dem Verweis auf die Landessitten in Abu Dhabi gleichmütig hingenommen hätten. „Es geht mir nicht darum, Leute wegen unglücklicher Äußerungen zu schimpfen“, predigte Burgey. Wenn man plötzlich vor der Kamera oder einem Mikrofon stehe „kann leicht etwas Falsches herauskommen“. Er müsse aber richtig stellen: „Es geht uns sehr wohl etwas an, wenn der Scheich in Abu Dhabi foltert.“ Demokratie bestehe wesentlich im Hinsehen, nicht im Wegsehen.

Mesner Johann Mayer begrüßte die Erklärungen von Pfarrer Burgey. „Es ist schwierig für den einfachen Bürger die Sachverhalten zu erfassen und zu verstehen.“ Aus diesem Grund sei die „aufklärende, sachliche Predigt“ des Pfarrers sehr hilfreich gewesen. Die Rede habe „den Horizont erweitert“ – schließlich solle und könne man sich nicht auf das Gerede anderer verlassen. (xb/ee)

ZDF Heute Journal Germany 10.May. 2009 , Report Torture Issa bin Zayed Al Nahyan

German ZDF Heute Journal May 10, 2009 TV Report about the Torture Video Issa Nahyan

ZDF Heute Journal Germany 10.May. 2009 , Report Torture Issa bin Zayed Al Nahyan

UAE ‘torture’ case seen as critical test of justice

source FinancialTimes  May 16.2009 by Andrew England Abu Dhabi  and Simeon Kerr in Dubai

The footage begins with an assault rifle allegedly being fired by a member of the United Arab Emirates’ ruling family. Bullets throw up clouds of sand as they smash into the desert, inches from a cowering Afghan grain trader.

It moves on to the Afghan being beaten with a cattle prod and a plank of wood, and concludes with a 4×4 vehicle being driven over his battered body.

The video lasts just minutes and was recorded more than three years ago. But, for the UAE, an oil-rich nation desperate to hold itself up as a model international business hub, it has thrown up a critical test.

The man alleged to have carried out the assault in the so-called “torture video” is Sheikh Issa bin Zayed Al Nahyan, a half-brother of the UAE’s president and of the ruler of Abu Dhabi, the capital and wealthiest of the seven city states that make up the emirates.

In the past, scandals involving the Gulf’s large ruling families were dealt with in-house and its members were seen to be above the law and almost any form of public scrutiny.

But this time it is different. The video has been leaked, broadcast by American television, posted on the internet and widely distributed to politicians in the US, a key ally with which the UAE is hoping to negotiate a deal on civilian nuclear trade.

In the wake of the international outcry, Abu Dhabi authorities announced that they had detained Sheikh Issa and launched a criminal investigation into the allegations, the first move of its kind in the UAE.

With the world’s eyes increasingly on the oil nations of the Gulf, image-conscious Abu Dhabi appears to have accepted that it had no choice but to act amid the scrutiny.

“The UAE is clear on its desire to be global and be measured by best of international standards,” says Abdulkhaleq Abdulla, a political scientist at Emirates University. “And if it wants to measure itself with the best of international standards, it has to apply it across the board.”

In recent years the UAE has grown more engaged with the outside world and has moved to quell international censure. It has reimbursed child camel jockeys, improved labour rights and worked out principles for sovereign wealth funds to follow.

Dubai expatriates have long passed on stories of foreigners who ended up in jail – the “Hilton Jumeirah”, as some dubbed the city’s old prison – for crossing the wrong sheikh or wellconnected national, usually over a failed business deal.

Lawyers say some individuals can still pervert the course of justice by wielding influence before a trial. But once cases go to court, it is generally more difficult to influence the judiciary.

The decision to prosecute a former finance minister, Mohammed bin Kharbash, for alleged fraud at a state-linked real estate company, seems to back the proclamation last year by Dubai ruler’s that no one is above the law.

Most locals argued that Mr bin Kharbash was too powerful to face trial and the move sent shockwaves through the community. Another former minister had a month earlier been found guilty of embezzling assets from a business partner.

However, there are some foreign complainants in commercial cases who continue to argue that they are not getting a fair hearing.

With the case of Sheikh Issa – one of 19 sons of UAE founding father Sheikh Zayed – many will want to see if the judicial process produces tangible results.

Human Rights Watch argues that, while his detention is significant, “much more needs to be done to restore faith in the country’s police and justice system”.

But Mr Abdulla said it shows that no one – whether it’s “a regular man or superman or a ruling family man” – is above the law.

“We should not be in the habit of hiding our mistakes,” he adds. “The sooner we deal with them in a transparent way, the more we will measure up [as] a transparent and a civilised nation.”

Jumeirah Beach Residence standoff

source: Xpress GulfNews

Dubai : The Real Estate Regulatory Authority (Rera) has taken the sting out of a 129 per cent increase in service charges for unit owners of Jumeirah Beach Residence – sort of.

In a letter obtained by XPRESS, Rera has given what it calls “preliminary approval” that Salwan Property Management rescind its original annual service fee hike of Dh21.75 per square foot to Dh15.32.

The decision means that instead of an owner of a 1,000 square-foot flat in JBR paying Dh21,750 per year, he/she will now pay Dh15,320 per year.

In its letter, Rera tells Salwan that “we have agreed” to the lesser service charge which is split between Dh8.32 per square foot for maintenance and service charges and Dh7 per square foot for electricity and water consumption.

Not enough

Celia Reinaldo, a member of the JBR Residents’ Association, said unit owners are glad, but noted that some owners believe even the latest compromise doesn’t go far enough.

“It’s good news but it’s still more than it was last year,” said Reinaldo. In its letter, Rera has informed Salwan that it “must take into consideration” management fees, a building reserve fund and an infrastructure amount as part of the service fees cost.

The letter said, “Developers must deposit collected charges into private account and undertake not to spend the money unless [they] get Rera approval.”

The JBR Residents’ Association, meanwhile, has hired a professional company which had determined in a initial study that the Dh15.32 per square foot cost is also not justified.

In a letter to members, the association executive said that “based on this initial study, the maximum cost for JBR in terms of service charges should not exceed Dh12.4 per square foot”.

Dubai Criminal Court – Saudi bank also a victim in Dubai Islamic Bank scam

source TheNational UAE
May 14, 2009

DUBAI // A Saudi bank was among the victims of the scam in which the Dubai Islamic Bank was defrauded of US$501 million (Dh1.8bn), it was disclosed in court here yesterday.

A DIB employee testified yesterday before the Dubai Criminal Court of First Instance that $120m of the embezzled money belonged to the Saudi Hollandi Bank, of which DIB was a local agent.

The seven defendants are charged with presenting falsified documents to DIB to take possession of funds to finance non-existent projects. Five of them appeared in court yesterday.

The DIB employee told the court that one of the defendants, CR, had met with a special committee set up by DIB in 2007 to settle the matter out of court and pay back the money owed by CCH International, the British-based financial company into whose account the embezzled funds went. He said CR told the committee that the funds were used for “other purposes than intended” and that the bulk of the $501m was transferred to projects and companies in Pakistan and Bahrain as well as to The Plantation project in Dubai.

He said the bank had approved the settlement initially after numerous meetings with CR, who agreed on a repayment schedule and offered the bank properties in Bahrain and in The Plantation project itself as guarantee but that the payments stopped when the defendants were arrested.

Judge Hamad Abdullatif adjourned the case until May 28.

Nakheel will pay only 65 percent of its debts

source KippReport

May 14, 2009
 
Dubai-based property developer Nakheel is offering consultants and contractors only 65 percent of what they are due, the New Civil Engineer reports.

“One of the offers on the table is for firms to get 65 percent of their consultancy fees, with the understanding that in doing so, they waive their legal rights [to further payment],” said Nelson Ogunshakin, CEO Association for Consultancy and Engineering.

Nakheel received an undisclosed cash injection from the Dubai government in early May, as part of Dubai’s $20 billion bailout plan.

According to the publication, Nakheel refused to comment on the issue.

What next is the question now being asked by investors as one of the Middle East’s largest property developers Nakheel

source The National UAE, May 12, 2009

ABU DHABI // Nakheel made headlines around the world with its Palm island projects and the planned Hong Kong-sized Waterfront development, while its advertising billboards dotted around Dubai asked “What next?”

What next is the question now being asked by investors as one of the Middle East’s largest property developers contends with a US$3.5 billion (Dh12.85bn) Islamic bond due in December, which helped fund projects that included the world’s biggest man-made islands.

How the sukuk is handled will serve as a key test for the credit ratings of state-controlled companies in the emirate and could affect their ability to raise money on international markets. It is also widely seen as an indicator of how Dubai will cope with its overall debt burden, estimated at $70bn.

“The clock is ticking, so something has to be done,” says Abdul Hussain, the chief executive of Mashreq Capital.

Nakheel issued the three-year sukuk in 2006, when the Dubai property market was still in a fever and the likelihood of a downturn seemed impossibly remote. The bond came with a profit rate – the Sharia-compliant equivalent of an interest rate – of 6.345 per cent per year. To ease its cash flow, however, Nakheel arranged to pay just half of that, or 3.1725 per cent, during the life of the bond. It would pay the rest at maturity, which seemed a sensible strategy given the rapid rise in property prices in Dubai and the healthy profits the company was booking.

As a further teaser, Nakheel added an option for sukuk holders to buy shares of Nakheel at a 5 per cent discount should it stage an initial public offering and become a listed company. It also backed up the sukuk with significant collateral: land and other assets worth more than twice the value of the sukuk.

At first, international investors eagerly snapped up the offering. Initially, just 30 per cent of the shares were sold to investors in the region, according to a source involved in the deal. The rest went to overseas investors.

Almost three years later, the economic climate could hardly be more different and Nakheel, like many other companies in Dubai, is busy working out how to settle its debts amicably while continuing to build and invest. The company recently undertook a round of cost-cutting and is said to be asking its contractors to take discounts on payments due to them. A source at a building contractor in Dubai that has worked on a number of Nakheel projects said all construction companies associated with the company’s Waterfont development had been asked to take discounts ranging between 30 and 40 per cent.

Yet among the many ways in which Nakheel must cope with the changing economic tides, its $3.5bn sukuk probably ranks as the most significant – and most urgent. The uncertainty surrounding the sukuk has caused its price to rise and tumble rapidly. It was recently trading at a heavy discount, with a yield of about 58 per cent. Low prices and high yields mean investors demand to be compensated with a high return for taking an increased risk that their money may not be paid back in full. “The market obviously believes there is a significant risk of some form of restructuring,” Mr Hussain says. “Otherwise you wouldn’t be able to earn a 50 per cent yield. We are now waiting to hear what sorts of strategies are going to be put in place.”

Nakheel has a range of options for the sukuk, analysts say. It may simply pay off investors in full using an injection of funds from the Dubai Government, received as part of the first instalment in a planned $20bn bond programme. Nakheel said recently it was receiving assistance under the programme.

It could also sell part of itself to a private equity firm in order to raise some of the cash. Analysts have suggested that money raised from a possible sale of part of DP World to a private equity firm could be redirected through Dubai World – which owns both DP World and Nakheel – to help pay off the sukuk. Abraaj Capital, a buyout firm managing $6bn in assets, has approached Dubai World about acquiring a “significant minority stake” in DP World, a source with knowledge of the discussions said earlier this week.

Nakheel could also go to banks for loans to refinance part of the sukuk, or it could try to buy back a chunk of the Islamic bond by extending a tender offer to existing owners.

Another option is for Nakheel to partially restructure the sukuk, giving most of investors’ money back and converting the rest of the debt into a new longer-term loan. This route could also involve one or both of Nakheel’s other sukuk, which are smaller and due in 2010 and 2011.

Rumours of such a restructuring began to surface about a month ago, when Nakheel hired a market intelligence firm to identify the owners of its sukuk shares. Many investors saw this as an indication that the company was trying to find out what portion of the sukuk was owned by investors who would be sympathetic to an attempt to restructure.

The possibility of a restructuring led Standard & Poor’s, a major ratings agency, to put numerous Dubai companies on watch for a credit downgrade.

A Nakheel spokeswoman said in a statement that “a number of options” were currently on the table and declined to elaborate. Bankers said that a restructuring that left investors with a loss was probably Nakheel’s least desirable option, aside from a fully fledged default. If Nakheel were to allow many of its investors to take losses, they said, the cost of raising money in the future – for Nakheel and other government-linked companies in the UAE and the broader GCC – might go up.

“Nakheel has a large volume of public debt, much of it held by international investors, so a lot is at stake regarding international credibility of Dubai corporates that will likely at some point seek to borrow again in the global capital markets,” says Khalid Howladar, a vice president and senior credit officer for structured and Islamic finance at Moody’s, another ratings agency.

What seems most likely, investors and observers say, is a combination of some of these options. Nakheel may buy back some of the sukuk shares using subsidy money, for example, offering an above-market price for them. If some investors are unwilling to sell, the company could then try to refinance a portion of the debt with bank loans and sell some of its equity to a private equity firm.

Bobby Sarkar, an analyst at Al Mal Capital in Dubai, believes Nakheel is also considering selling some of its assets, such as its stake in the Atlantis Hotel on the Palm Jumeirah and properties in Discovery Gardens, both in Dubai. “They are looking at a combination of asset sales, some inflow from the Government, some restructuring and a partial sale to Abraaj.”

Whatever options it chooses, a source familiar with the sukuk says, a full default or even a serious restructuring is highly unlikely, given the value of the collateral that Nakheel has provided and the negative message such a move would send to international markets.

Moreover, Dubai’s government-linked companies have so far succeeded in paying off or refinancing large loans and bonds as they come due. In February, for example, Borse Dubai – the company that owns Nasdaq Dubai and the Dubai Financial Market – was able to refinance a $3.4bn bank loan, albeit with major help from local sources of funding.

Last month, the Dubai Electricity and Water Authority refinanced a $2.2bn Islamic loan with 18 international, regional and local banks.

Nasser al Shaikh, the director general of the Dubai Department of Finance, said a week later there was a “shift in the overall mood” in the international credit markets when it came to Dubai’s debt.

Nakheel confirms receiving funds

source Business24/7

Nakheel has started receiving funds from Dubai Government, confirmed its Chief Executive Officer (CEO) Chris O’Donnell in an exclusive interview with Emirates Business. However when asked if the figure stood at Dh2 billion, the chief executive said: “The actual figure is confidential and so are all the other details. But yes, Nakheel is receiving funds.”

The developer is also talking to its contractors and re-negotiating payments plans and contracts. “Yes, we are trying to help them and ourselves through our current situation. We are at the stage of commercial settlements and negotiations. Rather than detail on percentages, it is a true statement to say that construction costs are falling and there is definitely a reduction,” said O’Donnell.

“Part of our obligation to our customers is to ensure that we get them the best buildings. Hence, we are talking to our contractors to get cost-effective solutions.”

O’Donnell said the developer does not issue credit notes and warned investors against any such fraud. “When the market recovers, the focus will be on people buying serviced land. Hence, the built form in Nakheel’s projects is definitely going to be linked to the provisions of infrastructure, which will be on an incremental basis,” he added. Speaking about the latest on the status of Nakheel projects, O’Donnel said that work on Palm Jebel Ali has slowed down while the Palm Deira and the Universe projects are on hold.

However, construction on Jumeirah Village and Al Furjan is progressing, he said.

Nakheel Jumeirah Palm home prices hit new three-year low – Dubai May 2009

source ArabianBusiness

House prices on Nakheel’s Palm Jumeirah project have fallen below AED800 per square foot for the first time in over three years – and nearly 60 percent down in the past five months, Arabian Business can reveal.

Agents are now looking to offload three bedroom apartments covering 2,184 square foot for just AED1.7 million, representing only AED778 per square foot.

And experts suggest even that figure could fall further.

“The 1.7m (dirham) is the listed price, and we all know that nobody is selling for a listed price. There are people who may be willing to take even 1.5million, which would less than 700dhs per square foot,” said one agent.

Other experts suggest that the continued falls are linked to the exchange rate between the pound and dirham.

“With the rate have fallen to around five dirhams to the pound, landlords based in the UK can afford to take nearly 30% less than they were asking based on last year’s rate and still end up with the same amount of sterling in their bank. That factor is definitely pushing the market down more,” said the agent.

The decline in sale prices comes as a new rental index for Dubai to be published this week will show a 30 percent fall in rents since March for Palm Jumeirah villas.

The Landmark Advisory index is expected to show declines in other residential hotspots in Dubai such as apartments in Jumeirah Beach Residence (JBR) and townhouses in the Springs – with rental falls of eight percent compared to Landmark’s last index.

“Since our last price map published at the end of March, we’ve seen a shift towards leasing. Owners are unable to sell their units and they are unwilling to lower their prices. They are adjusting their investment horizons and turning to leasing to generate revenue,” said Jesse Downs, director of research at Landmark Advisory, the consultancy division of Landmark Properties.

RERA – Dubai mulls cancellation of 27 projects

source ArabianBusiness

Dubai is considering cancelling 27 projects, the head of its real estate regulator said on Monday, as the emirate’s property market slumps in the global downturn.

A decision whether to cancel or not would be made by the end of the month, said Marwan bin Ghalita, the head of the Real Estate Regulatory Authority (RERA).

“The decision has not been done. They are projects all over Dubai – third party projects (sub developers),” he said.

Earlier this year, Ghalita said he believed 25 percent of projects will be cancelled in Dubai as a result of the global economic slowdown.

“It’s almost the same,” he said when asked if that figure had changed. The Dubai Land Department and RERA set up a committee last week to cancel projects in the emirate that are not feasible.

German economics minister meets UAE interior minister

source

Abu Dhabi

German Economics Minister Karl-Theodor zu Guttenberg said Sunday that the United Arab Emirates government would soon publish the results of an investigation into a torture case in which a member of the emirate’s ruling family has been implicated.

Guttenberg said he was told this in talks with UAE Interior Minister Shaikh Saif Bin Zayed Al Nahyan.

The Berlin minister said that the Emirates’ government had an interest in assuring that the country’s rule of law reputation is not damaged. Guttenberg said he had made a point of bringing the case up for discussion.

Read more: http://www.monstersandcritics.com/news/europe/news/article_1476195.php/German_economics_minister_meets_UAE_interior_minister_#ixzz0F94ZJHTe&B

Comment of the Day – RERA Dubai

by Joe May 10, 2008

You are not alone there. Probably there are thousands of investors in this moment who invest in off plan property and now balancing on the edge of precipice.

What is very sad that authority doesn’t do their job. They have established RERA and Laws around but RERA does not act in accordance with responsibility that they have. By their passiveness they actually support developers to make with investors what every developer would like. But this is like huge boomerang that will devastatingly  hit entire Dubai project.

I am simply stunned how authority is looking peacefully while full crowded ship sinking in front of their eyes.
By Law No 9 it is evident that RERA would like to help developer rather than helping investors. Where will be our investment place after Law No.9 just God knows.

What will be rules and conditions to cancel project will probably depends on color of skin, distance from Sheikhs, residency, are the owner  of Developer  domestic or stranger etc.

And do you think that investors are asked to participate in panel? Or when composing rules for categorize project to what “Sliding Scale” to place it?

I think that without pressing from outside they will still think that they can do whatever they would like and manipulate with foolish investors as much as they want.

UAE is not alone in the Earth. Their life depends on world community. Without respect to all of us who wanted to participate in Dubai story they do not have future.

One lesson was recently reached UAE by freezing permission for using nuclear power for civil purposes caused by incident from royal family.

I think that there has to be more lessons if outside investors are going to lose their invested money. We have to ask our government to protect our interest in Dubai.

Dubai Lawyer Samir Jafaar: ‘Ex-UAE Minister of State Had No Intention to Cheat’

source KhaleejTimes by Zawya

08 May 2009

DUBAI

The verdict in the fraud case filed against former UAE Minister of State Dr Khalifa Bakhit Al Falasi will be pronounced on May 28 by the Court of Appeals.

Both defence lawyers of the ex-minister, his son and the other two defendants, Samir Jaafar and Abdelmonem Suwaidan, stressed in their arguments that the former minister did not swindle the Lebanese businesswoman (the plaintiff). They pleaded that she was aware of the legal status of both her late brother and Dr Al Falasi before she signed the disputed settlement bond in which she relinquished her 49 per cent shares in the Global Information Technology Company that she inherited from her brother.

“The audit reports and financial and budget statements of the company are some of the evidence that she was aware of the business relationship between the minister and her brother,” Jaafar said. “What sustains our pleas is that my client (the ex-minister) was running the information company in due course when the plaintiff’s brother was in the US for health reasons. Dr Al Falasi signed personal banking security bonds which is a clear revelation of his good intentions,” counsel Jaafar pleaded.

Jaafar added, “In the documents we had access to, there was one particular contract signed by the ex-minister and the plaintiff’s brother saying that the latter collected a monthly salary of Dh2,000. This proves that my client is a real partner in the company.”

Jaafar pointed out that the plaintiff collected Dh28 million for her part of the family shares which does not mean that she was victim of cheating.

The 51-year-old ex-minister pleaded not guilty to the charge of cheating the Lebanese businesswoman to unlawfully take the Global Information Technology Company, she inherited from her brother by pretending he was a partner with 51 per cent of the shares, rather than a paid sponsor.

He pleaded not guilty to the fraud and breach of trust charges. His son, the American director general of the company and the Indian financial manager also pleaded not guilty to the charge of criminal complicity in defrauding the plaintiff.

The Court of Misdemeanours awarded on February 23 the former minister two years in jail, as he was found guilty of fraud. Dr Al Felasi was acquitted of the charge of breach of trust.

Defence lawyer Jaafar also highlighted in his pleas a letter from the Economic Department proving that Dr Al Falasi was the original owner of the company since 1995 and that late brother joined in as a shareholder in 1996.  The former minister’s 26-year-old son was acquitted in February from the criminal complicity charge.

The company’s director general and the financial manager were awarded two years in jail each for assisting in swindling the plaintiff. They would be deported after serving their jail terms, the court ordered. The civil case was referred to the relevant court whereas the plaintiff is claiming Dh500 million in compensation.

The Lebanese woman is also prosecuting the former minister for hiding from her the fact that her late brother was investing in a real estate in Al Qusais area.

Royal Sheikh Issa Zayed Al Nahyan Detained by UAE Over Torture Tape Allegations

source ABC News 08, May 2009

A member of the royal family in the United Arab Emirates, Sheikh Issa bin Zayed al Nahyan, has been “detained” in Abu Dhabi by authorities investigating a chilling videotape that shows him torturing an Afghan grain dealer, according to officials in Washington.

UAE officials told American diplomats the Sheikh was put under “house arrest” this week and prevented from leaving the country as the UAE Ministry of Justice conducts a criminal investigation of the incidents on the videotape, the officials said.

The 45-minute torture tape, first broadcast on ABC News Nightline two weeks ago, shows the Sheikh, the brother of the UAE crown prince, beating his victim with an electric cattle prod and a wooden plank with protruding nails. Men in police uniform are seen on the tape restraining the victim, who has sand shoved down his throat and is later repeatedly run over by a Mercedes Benz SUV driven by the Sheikh.

Dubai: Construction firms owed billions

source The National

Construction firms in Dubai say they are having to either accept reduced payments, or risk not getting paid at all. The National

‘Egypt’s Madoff’ faces trial in UAE

source TheNational

ABU DHABI // Nabil al Boushi, an Egyptian businessman sentenced in absentia to 15 years in jail in his home country after he was convicted of fraud, will have to stand trial in Dubai before any thought can be given to his extradition, the Ministry of Justice said yesterday.

Four charged with fraud in UAE-Europe VAT case

source The National

RERA Dubai – Panel to identify unviable projects for cancellation

source Business24-7

Dubai Thursday, May 07, 2009

The Dubai Land Department and the Real Estate Regulatory Agency (Rera) have set up a committee that will decide on cancellation of “unviable” projects, senior department officials said yesterday.

Addressing an investors’ meeting, officials said a committee has been formed to study and analyse non-feasible projects.

“It is a tedious task and requires a lot of paper work. But the committee has been created to address the issue,” a senior official said.

Ludmila Yamalova, Partner, Mac Davidson Legal Consultants, who was present at the meeting, told Emirates Business that officials admitted project cancellations were not under their purview earlier, but amendments to Law No13 regulating the Interim Real Estate Register in Dubai now allows them to cancel projects that they deem not feasible.

In February, Rera Chief Executive Officer Marwan bin Ghalita said he believes 25 per cent of the projects will be cancelled, as developers did not start them or don’t have an intention to begin. However, he could not be reached for comment on the number of developers requesting cancellation.

The officials further told investors that the detailed regulations for Article 11 of Law No13, which lays down the terms for cancellations of “off plan” properties, will be announced soon and will explain terms such as “beyond developers control” in detail.

According to Yamalova, the authorities said developers will no longer be allowed to retain any money on reselling of units on termination of investors’ contract.

“Developers will no longer have any incentive to cancel contracts, as the money received on the resold unit will have to be deposited with the trust account of the Land Department,” she added.

Besides, Rera is also ensuring all amended payment schedules from developers need to be approved by them, with it planning to upload all payment plans on their website.

According to Rera statistics, 31,003 and 43,880 units will enter the market in 2009 and 2010, respectively.

However, it believes 20 per cent of residential units may not enter the market this year.

In February, it said the number of developers has come down from about 870 to 427.

Torture-tape Gulf prince accused of 25 other attacks

source Guardian UK

New York, Sunday 3 May 2009

US lawyers claim they have videos implicating Abu Dhabi royal in more cases of torture, a week after outcry over his assaults on Afghan businessman.

“I have more than two hours of video footage showing Sheikh Issa’s involvement in the torture of more than 25 people,” wrote Texas-based lawyer Anthony Buzbee in a letter obtained by the Observer.

read the full story Link

Off plan sales in Dubai ‘practically non-existent’

source ArabianBusiness May 03, 2009

Off-plan property sales in Dubai are “practically non-existent”, according to a new report released this week.

“State of the Market 2009”, published by Better Homes and Investment Boutique, warns that “off plan sales across the emirate are practically non-existent, and finished product is in demand mostly by end-users.”

The report adds that “there is still substantial room for price depression in order to meet true affordability levels.”

However, on a more positive footing, it suggests that “by the last quarter of 2009 prices are expected to hit a trough and the market is expected to gradually stabilise.”

The 100-page report was compiled over the past three months, and contains detailed analysis of the residential, commercial, retail and hospitality sectors.

“The report shows that we are going through very challenging times, where prices, targets and ambitions will have to be dramatically altered. This is a painful process,” said Better Homes managing director, Ryan Mahoney.

Dubai Property Court – Realty developers, agent told to pay Dh1.77m to couple

source GulfNews

Dubai: Two property developers and a real estate promoter have been ordered to repay Dh1.77 million paid in by a couple for a 26th-floor-flat overlooking Dubai’s Business Bay.

The Dubai Real Estate Court ordered the Dubai-based promoter and property developers to repay the couple, a businessman and his wife, Dh1.77 million which they had deposited as a first instalment for the flat in a high-rise tower project.

Lawyer Dr Habib Al Mulla, of Habib Al Mulla and Co Advocates and Legal Consultants, who represents the couple, lodged the civil lawsuit against the defendants after they refused to collect the remaining instalments and write a contract then deliver the flat.

Presiding Judge Shehab Ahmad Al Shehi also ordered the defendants to pay the above-mentioned amount plus nine per cent legal interest.

Dr Al Mulla argued in his lawsuit that his clients purchased the flat for Dh17.7 million, out of the first payment was made to the promoter. “They collected a receipt for the first instalment. When the second instalment was due, the promoter asked my clients to pay it for the sake of one of the property developers based in Dubai.”

Dr Al Mulla said since the deal was made, it was his clients’ first encounter with the Dubai-based property developer.

“The claimants asked the promoter why should they pay the second payment to the Dubai-based developer before, they later agreed to pay & surprisingly, the promoter informed my clients that they stopped receiving payments for that project,” he continued.

He said his clients were asked to follow up with the Dubai-based developer and a Kuwait-based developer.

The Dubai-based developer met with the claimants and informed them that there were no problems and they would be collecting their contract within a week, according to the lawsuit.

“Since then, the plaintiffs had been avoiding the claimants, refused to collect any instalments and didn’t process the contract. Since my clients didn’t get the flat, the price of which tripled after sometime, they lodged this lawsuit and claimed Dh1.77 million plus Dh500,000 in financial and moral compensation for the damages they incurred by the plaintiffs’ act,” argued Dr Al Mulla.

Presiding Judge Al Shehi further ordered the plaintiffs to pay Dh3,000 in lawyers’ fees. The primary verdict is still subject to appeal.

Confusion over RERA Rental Index

source 7Days

A new feature of the Real Estate Regulatory Authority (RERA) web site caused confusion over the expected Rental Index update today, as it seemed to indicate a fall of up to 50 per cent in rental rates.

The new ‘Rental Increase Calculator’ on the web site showed significantly lower rents across Dubai, in what many media reported as an indicator of the updated version of the Rental Index, expected before the end of April.

However, a spokesperson from RERA told 7DAYS that the authority was still working on the index and there was no official update as yet.

The ‘Rental Increase Calculator’ on the web site today showed that a three-bedroom villa in the Springs would now be priced at between dhs140,000 and dhs160,000 a year down by up to 50 per cent from the previous guideline of dhs250,000 to dhs280,000.

A studio apartment in Dubai Marina had fallen to dhs65,000 to dhs70,000 from dhs80,000 to dhs90,000, which would be a discount of up to 28 per cent, while a two-bedroom apartment in Discovery Gardens fell up to 37 per cent, from dhs130,000 to dhs145,000, to dhs90,000 to dhs125,000.

The calculator only recommends any increase in rent if the tenant is paying from ten per cent or more below the low end of these ranges, and in that case, it gives the maximum rent increase as five per cent. In no scenario is the maximum rent increase more than 20 per cent.

RERA had said it would release an updated version of the index first released in January, which was criticised at the time for showing prices nearer to 2008 peaks rather than prices impacted by the global economic slowdown.

The RERA spokesperson today could not confirm when the update would be released.

Go to  www.rpdubai.com

to see the ‘Rental Increase Calculator’

Dubai’s soon to be official April Rental Index – RERA Dubai

source ArabianBusiness

This website has unearthed new rental data from RERA that looks certain to form the basis of the next Dubai Rental Index.

A new service on the the Dubai Real Estate Regulatory Authority’s
web site allows landlords and tenants to enter details of their type of
accommodation, current rent, and the name of their residential
district. The web site then gives a guide price for how much rent
should be paid.

However, the RERA web site stops short of publishing a full table of
rents, so Arabianbusiness.com has put in the leg work to produce what
is, in effect, the April 2009 Rental Index.

Having created the table, we then looked at the change in rents for
every applicable area since the Index was last published in January
2009.

For villas, we compared median prices for three-bedroom homes; for apartments we compared median prices for two-bedroom units.

The results are startling. In the four months since the Rental Index
was last published, rents have plummeted by almost 50 percent in some
parts of the city.

Freehold developments have been worst affected, with two-bedroom
apartment rents for Jumeirah Lakes Towers, Dubai Investment Park and
Dubai Silicon Oasis all registering price drops of well over 40 percent.

Villa rental drops in the freehold areas have also been battered.
Rents for a three bedroom villa in The Springs fell by 45 percent.
Green Community, The Meadows and Arabian Ranches have all seen rents
fall by one-third.

Table 1: Rental Index for Apartments (AED,000 per annum).
Residential Areas are ranked according to the price change for a
two-bedroom apartment.

	Studio	1-bed	2-bed	3-bed	4-bed	Change
Jumeirah Lakes Towers	60-70	65-100	90-125	140-170	170-190	-44.9%
Dubai Investment Park	40-45	55-60	70-80	…..	…..	-43.4%
Dubai Silicon Oasis	40-55	50-60	75-80	90-100	…..	-42.6%
Al Buteen	50-65	65-80	98-110	80-90	…..	-34.6%
Al Muraqqabat	50-65	65-85	80-120	105-140	…..	-31.0%
Al Riqqa	50-60	65-85	80-120	105-140	…..	-31.0%
Al Garhoud	50-60	65-75	80-110	95-105	…..	-30.8%
Mirdif	45-65	65-75	80-100	105-115	…..	-28.0%
Al Jafeliah	40-45	45-55	65-85	90-120	….	-26.8%
Greens	55-70	90-110	120-140	160-200	220-240	-25.3%
Al Huamriya	45-60	60-80	80-100	110-150	150-170	-25.0%
Al Hudaiba	45-55	60-70	80-100	100-130	130-150	-25.0%
Discovery Gardens	45-50	60-70	90-125	…..	…..	-21.8%
Rigga Al Buteen	45-65	65-90	70-110	105-120	…..	-21.7%
Al Qusais	42-47	58-68	70-95	90-105	…..	-21.4%
Al Muteena	45-60	55-65	80-95	90-110	…..	-20.5%
Palm Jumeirah	…..	95-135	160-200	175-210	280-300	-20.0%
Green Community	55-60	80-90	110-125	150-170	…..	-19.0%
Port Saeed	45-55	65-75	70-100	95-115	…..	-19.0%
Al Nahdah	35-45	53-65	68-78	80-90	…..	-18.9%
Al Refaa	45-65	60-80	90-105	105-140	130-160	-18.8%
Al Warqaa (Buildings)	35-45	46-66	70-80	80-150	…..	-16.7%
Dubai Marina	65-75	80-120	120-160	160-200	220-240	-15.2%
International City	35-45	45-50	70-80	…..	…..	-14.3%
Hor Al Anz East	45-60	57-85	90-100	110-130	…..	-13.6%
Al Badaa	40-50	55-70	70-90	….	….	-13.5%
Hor Al Anz	40-50	50-60	70-80	75-100	…..	-11.8%
Abu Hail	40-50	50-70	70-80	95-105	…..	-11.8%
Trade Center 2	60-70	80-90	100-140	135-165	….	-11.1%
Trade Center 1	60-70	80-90	100-140	135-165	….	-11.1%
Al Souq Al Kabeer	45-55	60-70	75-85	100-130	….	-11.1%
Al Musalla	45-55	60-70	75-85	100-130	….	-11.1%
Al Muhaisna Fourth	35-45	50-60	60-70	80-90	…..	-10.3%
Jumeirah Beach Residence	75-90	100-125	140-160	160-200	230-250	-9.1%
Dubai Tower / Downtown	80-85	100-165	175-200	200-260	220-280	-8.5%
Al Murar	35-45	50-60	60-70	75-85	…..	-7.1%
Al Sabka	40-45	50-60	65-75	90-100	…..	-6.7%
Satwa	40-50	55-70	70-110	….	….	-2.7%
Gardens	…..	70-75	100-115	130-140	…..	0.0%
Al Baraha	35-45	45-60	65-75	85-95	…..	0.0%
Ayal Nasir	40-50	60-70	70-80	75-85	…..	0.0%
Umm Hurair	50-60	60-90	85-115	120-140	….	0.0%
Al Mankhool	45-65	70-80	85-125	120-150	150-170	0.0%
Oud Metha	55-65	65-95	95-125	105-140	….	2.3%
Al Ras	40-50	55-70	70-80	80-85	…..	3.1%
Al Barsha	50-55	65-85	95-115	110-140	….	5.0%
Al Daghaya	35-45	45-60	70-80	75-85	…..	6.7%
Naif	35-45	46-58	65-75	80-90	…..	13.3%
Al Karama	45-55	65-85	100-110	105-135	140-160	16.7%

Table 2: Rental Index for Villas (AED,000 per annum).
Residential Areas are ranked according to the price change for a
three-bedroom villa.

	2-bed	3-bed	4-bed	5-bed	6-bed	Change
Springs	100-130	140-160	160-180	…..	…..	-43.4%
Jumeirah Islands	…..	…..	270-290	300-320	…..	-37.8%
Green Community	…..	160-190	180-210	230-240	250-270	-36.4%
Meadows	…..	190-210	220-240	260-280	…..	-35.5%
Arabian Ranches	120-140	150-200	220-250	250-350	330-400	-34.0%
Umm Suqeim	145-175	200-240	260-320	290-360	…..	-32.3%
Palm Jumeirah	…..	250-280	300-350	375-420	…..	-29.3%
Al Barsha Residential	130-160	170-200	200-240	240-280	…..	-24.5%
Jumeirah	140-170	180-240	250-310	280-350	…..	-20.8%
Al Quoz Industrial	130-140	140-170	180-210	200-240	…..	-18.4%
Al Safa	130-160	160-200	200-240	240-280	…..	-18.2%
Al Badaa	120-150	140-180	180-220	210-250	…..	-18.0%
Al Mankhool	110-130	140-170	200-250	240-270	…..	-17.1%
Al Manara	135-165	170-200	200-250	250-290	…..	-15.9%
Umm Al Sheif	135-165	170-200	200-250	250-290	…..	-15.9%
Al Rashidiya	…..	120-150	150-170	175-185	…..	-15.6%
Hor Al Anz	…..	100-120	140-160	160-190	…..	-15.4%
Al Warga	…..	130-150	150-170	175-205	…..	-15.2%
Al Mezhar	…..	130-150	150-170	180-210	…..	-15.2%
Al Muhaisna First	…..	130-150	150-170	165-200	…..	-15.2%
Al Tawar	…..	130-160	155-175	195-205	…..	-14.7%
Al Muteena	…..	110-130	140-160	180-200	…..	-14.3%
Nad Al Hamar	…..	140-160	160-240	190-220	…..	-14.2%
Al Garhoud	…..	180-200	210-250	240-280	…..	-13.6%
Al Khawaneej	…..	130-160	160-170	190-210	…..	-12.1%
Al Wasl	130-160	170-200	200-240	240-280	…..	-11.9%
Al Wahaida	…..	115-135