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      Criminal Complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Juma Al Maktoum CEO of Dubai Developer Al Fajer Properties The Dubai Sheikh who mislead and extort a German Couple  Germany – Dubai 2011 A German elderly couple , today 80 + 50 years old who have been Dubai Tourists since a decade, bought in 2005 an apartment at Nakheel´s Dubai Residen […]
    • UAE: Human Rights Blogger, Sorbonne Lecturer Charged With ‘Humiliating' Officials
      source Human Rights Watch www.hrw.org (Beirut) - The United Arab Emirates attorney general should immediately drop all charges against five pro-democracy activists to halt their trial, Human Rights Watch said today. The charges of "humiliating" top officials relate solely to the defendants' peaceful use of speech to criticize the UAE governmen […]
    • Nakheel Dubai Sunland Case
      June 5, 2011After 21 hearings, Chris O'Donnell, the Australian chief executive of Dubai's major developer, Nakheel, came to the defence of his former colleagues Matthew Joyce and Marcus Lee. Mr Joyce and Mr Lee are accused of profiting from the sale of land that had been earmarked for a colossal high-rise development, which was to include the futur […]
    • Dubai Nakheel CEO decided to leave the company
      Dubai June 7, 2011 Nakheel said on Wednesday that its CEO Chris O'Donnell had left the company "after completing his contract terms". O'Donnell, an Australian who joined the developer in 2006, said he had decided to leave Nakheel following five years spent with the company, the statement added. O'Donnell has overseen a traumatic time […]
    • Owner of Dubai Developer Damac Hussain Sajwani files case against Egypt corruption ruling
      Dubai property developer Damac said on Tuesday it had filed an international arbitration case against Egypt over a land dispute and the conviction of its chairman and owner, Hussain Sajwani.A Cairo court last week sentenced Sajwani in his absence to jail and ordered him to pay a $40.5 million fine in connection with his 2006 purchase of land at Egypt's […]
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Posts Tagged ‘Maktoum Hasher Maktoum Juma Al Maktoum’

The tragedy around former CEO of Al Fajer Properties Dubai Shahram Abdullah Zadeh goes on

Posted by 7starsdubai on July 10, 2014

Prag juli 2014 shahram zadeh Prague – The media took place in March 2014 when the police in Prague uncovered a huge tax fraud, which was assumed be organized by Czech businessman of Iranian origin Shahram Abdullah Zadeh. Reporter Dalibor Bártek discovered a number of interesting facts from the past of Zadeh, but also from its recent action in connection with another case.

On March 19, 2014, the Czech anti-corruption department initiated a comprehensive police raid. 160 policemen searched a total of 25 sites in several regions of the Czech Republic. Among other them, the luxurious presidential suite at the Hilton Prague, which was rented since years by the Czech businessman Shahram Abdullah Zadeh.

The result of the police raid was the imprisonment of fifteen people, including Shahram Zadeh. He was charged with tax evasion in connection with the importation of fuel from abroad in the Czech Republic in the context of organized crime.

In the case of a final judgment, the members of the criminal group expect a prison sentence up to 13 years. According to press reports, it should be the biggest tax loss of the last years. The sum amounts to about four billion euros. According to police and the ongoing investigation it is said, that the head of the criminal group was Shahram Zadeh.


continue reading in the Czech Media (use google English translation)


Posted in Al Fajer Properties, Dubai Property Fraud, Maktoum Hasher Maktoum, Shahram Abdullah Zadeh, United Arab Emirates, Vereinigte Arabische Emirate | Tagged: , , , , , , | Comments Off on The tragedy around former CEO of Al Fajer Properties Dubai Shahram Abdullah Zadeh goes on

Dubai a legal system on trial

Posted by 7starsdubai on November 9, 2009

Dubai , Aug 07, 2009

Dubai legal System in questions

Dubai legal System in questions

Charles Ridley, a Bahrain-based British businessman, is facing trial in the Dubai court system. He is one of seven people accused of defrauding Dubai Islamic BankDubai Islamic BankLoading… of more than $500m, charges which he denies.

However, Mr Ridley, standing in white prisoner’s uniform in Dubai’s court of first instance, can understand proceedings only when the translator relates a direct question from the judge, or when the testimony turns to English. Even then he has to overcome the poor acoustics of the wood-panelled court.

“I need a translator so I can understand what is going on,” Mr Ridley says.

The high-profile case is one of many inching their way through the system this summer as the government’s corruption investigation leads to court cases.

The fate of Mr Ridley and other defendants has given rise to increasing calls for legal reform of the Dubai judiciary, which Sheikh Mohammed bin Rashid Al Maktoum, the emirate’s ruler, has criticised as outdated and inefficient.

Also the sharp economic downturn in the city has prompted an increase in financial crimes, especially default, which remains a criminal rather than civil matter in Dubai.

“We need full legal reform to update all the laws, not just commercial but also criminal,” says Habib al-Mulla, a prominent Dubai-based lawyer.

“Part of the issue is people are facing prosecution and the laws aren’t adapted to financial crimes, and the judiciary can’t handle the situation if laws are still holding us back. The problem, though, is when will it be done?”

Mr Ridley’s unheeded call for a simultaneous translator would be simple enough for the courts to satisfy, but changes to other elements of the United Arab Emirates judicial system would need approval from the federal government in Abu Dhabi, the capital.

The issue has been thrown into sharper relief by the case of Abdulsalam al-Marri, a former chief executive of Lagoons, a property development, who was held for nine months before last week being acquitted of bribery charges.

Mr Marri is one of many executives caught up in the Dubai government’s anti-corruption investigation, which was launched last year. He feels aggrieved at having spent almost a year behind bars, during which he missed the birth of his twins, and his professional reputation is shattered.

“We trust our legal system, but the procedures were not right. We can’t sit in jail and then go to court,” says Mr Marri, who is likely to face an appeal from the state prosecutor.

According to lawyers who declined to be identified, one of the most important legal reforms needed in the UAE is prompt investigation and presentation of evidence against the accused.

They are also concerned about the freer rein extended to the state security services by the public prosecutor’s office, which they say is a change from a decade ago when the security services were on a tighter leash.

“The prosecution should have a maximum six months to prove their case and charge defendants,” says one senior lawyer.

In recent years, the internal security service has played a larger role in investigations of white-collar crime, especially those relating to government corruption.

Suspects detained by state security are frequently held for weeks, sometimes in solitary confinement and without access to legal or consular access, lawyers say.

Photo: Shahram Abdullah Zadeh CEO Al Fajer Properties 2008. 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 Sheikh Hasher Juma Al Maktoum and his son Sheikh Maktoum Hasher Maktoum Al Maktoum

Photo: Shahram Abdullah Zadeh CEO Al Fajer Properties 2008. 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 Sheikh Hasher Juma Al Maktoum and his son Sheikh Maktoum Hasher Maktoum Al Maktoum

Shahram Zadeh CEO Al Fajer Properties Dubai, a longstanding Iranian expatriate in Dubai, says he was detained for two months last year. After extensive interrogation, Mr Zadeh was released without charge but has had his passport withheld.

Since then, the Dubai authorities have refused to accept attempts by Mr Zadeh to launch criminal proceedings against members of the ruling family over the ownership of Al Fajer Properties.

Al Fajer claims Mr Zadeh stole money from the company, but the courts are hearing a $1.9bn civil law suit filed by Mr Zadeh against Sheikh Hasher bin Maktoum Al Maktoum and two of his children ( the son, Sheikh Maktoum Hasher Maktoum Al Malktoum and his sister Sheikha Maryam Hasher Maktoum Al Maktoum)  in which Mr. Zadeh claims they used the detention to seize the company illegally. He alleges that they were only sponsors and did not invest. They deny the allegation.

Sheikh Maktoum Hasher bin Juma Al Maktoum Al Fajer Properties in Dubai. Appointed by his father Sheikh Hasher Maktoum Juma Al Maktoum Mid March 2008 to the President of Al Fajer Properties

Sheikh Maktoum Hasher bin Juma Al Maktoum Al Fajer Properties in Dubai. Appointed by his father Sheikh Hasher Maktoum Juma Al Maktoum Mid March 2008 to the President of Al Fajer Properties

Lawyers say defendants should be allowed to have a legal representative present when they are being questioned, and police should stop sitting in on the weekly conversations lawyers are permitted to have with detained clients in the run-up to and during court hearings.

The public prosecution’s file of evidence should also be made available if suspects are detained for long periods before being charged and tried, the lawyers say.

Changes to the commercial courts – especially those that deal with the collapsed real estate market – are also needed, the lawyers argue. These changes could include cheaper fees and more efficient scheduling of cases, which at present can drag on for months.

But even if the city decides to overhaul criminal and commercial procedures, the matter is federal and therefore needs to be addressed by the government based in Abu Dhabi.

“In the end, Dubai can improve efficiency on the edge, but this will still be short [of what is required] unless they get the federal umbrella to change,” says one critic.

By Simeon Kerr in Dubai
source Zawya

Powered by ScribeFire.

Posted in Al Fajer Properties, Dubai, Dubai Fraud, Dubai Justice, Dubai Legal - Real Estate Lawsuits | Tagged: , , , | Comments Off on Dubai a legal system on trial

Iranian’s lawsuit reveals royal power in Dubai

Posted by 7starsdubai on July 22, 2009

source World Tribune  09 June 2009

A  member of the royal family (Sheikh Maktoum Hasher Maktoum Al Maktoum)  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 ( Sheikh Hasher Maktoum Al Maktoum) of the emir of Dubai ( Sheikh Mohammed bin Rashid Al Maktoum) 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

Shahram Abdullah Zadeh CEO Al Fajer Properties 2008

Shahram Abdullah Zadeh CEO Al Fajer Properties 2008

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 bin Rashid 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 Maktoum Al Maktoum, 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 Maktoum Al Maktoum 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, RERA Dubai,  announced the first transfer of property using a new official online system.

Sheikh Maktoum Hasher Maktoum Al Fajer Properties

Photo: Sheikh Maktoum Hasher Maktoum facing lawsuits from Investors of Ebony and Ivory Towers - also named Jumeirah Business Centre) developer in Dubai is Al Fajer Properties

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 Sheikk Maktoum Hasher  Maktoum Al Maktoum,” Oye, who represents investors from Britain, Canada, India, Iran, Pakistan and the United States, said. “Now, we want our money back.”

Posted in Al Fajer Properties, Dubai, Jumeirah Business Centre, Shahram Abdullah Zadeh, Sheikh Maktoum Al Maktoum | Tagged: , , , , | 1 Comment »

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

Posted by 7starsdubai on July 19, 2009

Al Fajer Properties Dubai 2009 , Sheikh Maktoum Hasher Maktoum Al Maktoum

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 , sheikh Hasher Maktoum Al Maktoum, of Dubai’s emir illegally of taking over his real-estate firm Al Fajer Properties 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 and his son Sheikh Maktoum Hasher Maktoum Al Maktoum to get his firm Al Fajer Properties back, a rare move. Even more surprising, shrahm 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 Maktoum Al Maktoumand his company attorneys did not return repeated phone calls or respond to interview requests.

In the first session of Zadeh’s civil case, Hasher Maktoum Al Maktoum 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 Sheikh Maktoum Hasher Al Maktoum 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 Sheikh  Hasher Maktoum Al Maktoum 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, Juemirah Business Centre.

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, Sheikh Hasher Maktoum Al Maktoum took over the company Al Fajer Properties by appointing his son Sheik Maktoum Hasher Maktoum Al 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 of Al Fajer Properties and Hasher Maktoum Al Maktoums partner.

Zadeh also says police tried to push him to sign a document saying he had no connection to Al Fajer Properties. 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.

Sheikh Hasher Maktoum Al Maktoum  “thought he could do it all because he’s a Sheik,” Zadeh said.

Police refused to comment on whether Zadeh was detained. Shahram 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 DubaiJumeirah Business CentreEbony Ivory Towers Dubai

Posted in Dubai, Jumeirah Business Centre | Tagged: , , , , , , , , , , | 10 Comments »

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

Posted by 7starsdubai on June 22, 2009

Al Fajer Properties DUBAI, United Arab Emirates June 2009

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.


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

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 ( Juemirah Business Centre Phase 2) von Al Fajer Proeprties zu untersuchen.

Die Unterzeichner werfen dem Bauträger Al Fajer Properties 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 Hasher Maktoum  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 ( Juemirah Business Towers 7 bis 9), Jumeirah Lakes Towers.”

Unabhängige Presseberichte bestätigten jedoch, dass auf den Fotos in Wirklichkeit  ein von Al Fajer Properties anderes Projekt zu sehen war, die Jumeirah Business Centre Towers 1 bis 5. 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.

Dubai source Zawya

Posted in Dubai Fraud, Dubai Real Estate Scandal, Ebony Ivory Towers Dubai, Jumeirah Business Centre, Sheikh Maktoum Al Maktoum | Tagged: | 1 Comment »

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

Posted by 7starsdubai on June 22, 2009

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.”

Posted in Dubai | Tagged: , , , | Comments Off on Sheikh Mohammed had given the investigative team carte blanche – Corruption team makes its case

Al Fajer Properties Dubai Scandal media blackout

Posted by 7starsdubai on June 20, 2009

May 28. 2009
source Independent by Heerkani Chohan and PropertyWeek

Sheikh Maktoum Hasher Maktoum Al Maktoum Ebony and Ivory Tower Al Fajer JBC Dubai Fake pictures allegations and a member of the ruling family , Sheikh Maktoum Hasher Maktoum, 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, Al Fajer Properies,  with links to the ruling family of the UAE city-state, and the firm’s marketing agency Dynasty Zarooni, 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.

Posted in Al Fajer Properties, Dubai, Dubai Property dispute, Dynasty Zarooni, Fraud Dubai, Jumeirah Business Centre, Sheikh Maktoum Al Maktoum, Sheikh Maktoum Hasher Maktoum Juma Al Maktoum-2 | Tagged: , , , , | Comments Off on Al Fajer Properties Dubai Scandal media blackout

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

Posted by 7starsdubai on June 19, 2009

June 16, 2009 Dubai


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

Posted in Dubai, Jumeirah Business Centre | Tagged: , | Comments Off on Al Fajer Properties-Aufgebrachte internationale Investoren verlangen Ermittlungsverfahren im Rahmen eines 630-Millionen-Dollar-Immobilienskandals in Dubai

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

Posted by 7starsdubai on June 16, 2009

source Financial Post

Sheikh Maktoum Hasher Maktoum Al Maktoum of Al Fajer Properties  is giving interviews about thesucess but a major real estate scandal ( Al Fajer Properties)  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 , 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.
al fajer properties advertisement dubai with false construction status

Al Fajer properties advertisement dubai with false construction status

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.

Al Fajer Proepreties Maktoum Hasher Maktoum Developer JBC Dubai

Real Situation of Ebony and Ivory Towers June 2009 Developer Al Fajer Properties Maktoum Hasher Maktoum Al Maktoum

“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

Sheikh Maktoum Hasher Maktoum Al Maktoum Al Fajer Properties Dubai

Sheikh Maktoum Hasher Maktoum Al Maktoum Al Fajer Properties Dubai

“Al Fajer Properties, which is controlled by Maktoum Hasher Maktoum Al Maktoum, a 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.”

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”

Posted in Dubai, Jumeirah Business Centre | Tagged: , , , | Comments Off on Al Fajer Properties – Angry International Investors Demand Investigation in $630 Million Dubai Real Estate Scandal

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

Posted by 7starsdubai on May 31, 2009

original published Forbes

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

zadehmaktoumjbcOn 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, Sheikh 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.

“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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Al Fajer Properties – Comment of the Day

Posted by 7starsdubai on May 26, 2009

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.


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Al Fajer Properties Sheikh plans counter claim

Posted by 7starsdubai on May 25, 2009

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.

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

Posted by 7starsdubai on May 25, 2009

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

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Al Fajer Properties Case Comment of the Day

Posted by 7starsdubai on May 18, 2009

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


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

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

Posted by 7starsdubai on May 18, 2009

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

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Shahram Zadeh against Al Fajer Properties Maktoum Hasher Juma Al Maktoum – Comment of the Month

Posted by 7starsdubai on April 25, 2009

April 10, 2009 comment from Salahudin

I am a lawyer & familiar with such disputes known as financial cases.

Its actually very simple, the judge has to appoint an Accounts Expert (Court Appointed Auditor), to examine the accounts of Al Fajer Properties, and it will be very clear if Sheikh Hasher Maktoum has invested anything. I believe the lawyer of Sheikh Hasher Maktoum, Sheikh maktoum Hasher & Al fajer will do their best to close the case before the court appoints an Expert to avoid the embaressement.

If Sheikh Maktoum Hasher Al Maktoum succeeds in closing the case without the court Auditor examining Al fajer accounts, then it will be a big loss to dubai justice system because it shows they are afraid the truth will come out!!!

Sheikh Hasher Maktoum should be smart and try to settle the case with Dr.Zadeh Shahram before it becomes a nationalembaressement for Dubai ruling family.


April 10, 2009 comment from Tom

If the sheikhs win this case, it will be the end of foreign investor’s trust in dubai. This will be a test for dubai, is it really a safe & secure investment hub as they portray it???? Or the laws are not applicable to the ruling family?


April 10, 2009 comment from Al Fajer Victim

This is going to be a test case for dubai. This will reveal the depth of the corruption & behind the scenes torture, illegal arrest, fabrication of cases, all to protect the few sheikhs like sheikh hasher maktoum & his well known crook son who just thursday threatened me in front of my wife that if I complain about al fajer “it will have very bad consequences, I don’t want you to disapear” Shame on you sheikh maktoum hasher, you are nothing but a thief with everyone.

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Al Fajer Properties – April 8 , 2009 – Dubai court postpones 1.9 Billion Dollar case against Sheikh Maktoum Hasher bin Juma Al Maktoum, Sheikh Hasher Maktoum Juma Al Maktoum and Sheikha Maryam

Posted by 7starsdubai on April 25, 2009

DUBAI, Apr 08, 2009 (AFP) –

A Dubai court postponed on Wednesday a 1.9 billion dollar lawsuit by Shahram Abdulla Zadeh ( Iranian) gainst members of the ruling family over an allegedly lost property investment to give the defence time to prepare.

Lawyer Hussein al-Jaziri asked for a “long period of time to respond to the case,” but the judge set May 4 as the date for the next hearing.

No one represented the defence during the first hearing, on March 11.

Iranian Shahram Abdullah Zadeh claims he invested the 1.9 billion dollars as the sole capital of a company, Al-Fajer Properties

Under United Arab Emirates law, only UAE and Gulf citizens may register property firms, and ruling family member Sheikh Hasher Maktoum bin Jumaa al-Maktoum is listed as the owner.

“I was the sole investor. Al-Fajer Propertiesis my company. Sheikh Hasher’s only contribution has been the real estate licence as a sponsor,” he said in March.

Zadeh, who was sacked as company president last year, is demanding 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 seven billion dirhams (1.9 billion dollars), and nine percent interest since the suit was filed.

“We have enough documents to prove he was the sole investor,” Zadeh’s lawyer Salem al-Shaali told AFP after the first hearing.

Sheikh Hasher is a brother-in-law of Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum. Also named in the suit are his daughter, Sheikha Maryam, a partner in the company, and son Sheikh Maktoum, who was made president of Al-Fajer after Zadeh was sacked.

Their names were only made public on Wednesday.

Zadeh said he was detained by Dubai police at the time he was dismissed last year and held without charge for 60 days, and that his passport was confiscated and is still being held without explanation.

The case comes as several executives from high-profile Dubai firms are 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 slowdown.


More about the case Al Fajer Properties
which must be seen also in relation to the pending case Dynasty Zarooni

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Comment of the day

Posted by 7starsdubai on April 14, 2009

Comment by “Criminology Professor” to Al  Fajer Properties – April 8, 2009 – Dubai court postpones 1,9 Billion Dollar case against Sheikh Maktoum Hasher bin Juma Al Maktoum, Sheikh Hasher Maktoum Juma Al Maktoum and Sheikha Maryam

In criminology, state crime is activity or failures to act that break the state’s own criminal law or public international law. For these purposes, A “state” is defined as the appointed officials, the bureaucracy, and the institutions, bodies and organisations comprising the apparatus of the government. In this situation the sheikh is not alone, the role of the state as one of the possible perpetrators of crime whether directly or in the context of state-corporate crime must be examined.

One way of examining state crimes is to study the occurence of a trend by the state security forces, whether the state respects human rights in the exercise of its powers.

A classical situation is when, the state is directly involved in excessive secrecy and cover-ups, disinformation, and unaccountability which often reflect upper-class, royalty and nonpluralistic interests, and infringe human rights and the state laws. One of the key issues is the extent to which, if at all, state crime can be controlled. Often state crimes are revealed by an investigative news agency resulting in scandals but, even among first world democratic states, it is difficult to maintain genuinely independent control over the criminal enforcement mechanisms and few senior officers of the state are held personally accountable. When the citizens of second and third world countries which may be of a more authoritarian nature, seek to hold their leaders accountable, the problems become more acute. Public opinion, media attention, and public protests, whether violent or nonviolent, may all be criminalised as political crimes and suppressed, while critical international comments are of little real value.

In a state where there is dictatorship and reoccurence of State Crimes, it will result in fostering organized crime, corruption, and authoritarianism. In some third world countries, this political atmosphere has encouraged repression and the use of torture.


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Al Fajer Properties Investors asking Maktoum Hasher” where is our money” – Headlines from Sweden told – Maktoum Hasher Maktoum buys into Saab

Posted by 7starsdubai on March 19, 2009

source Sweden Press

by google translated version

Chinese Geely need money to buy Saab.

Shekh Maktoum Hasher Maktoum al Maktoum.
GT can today reveal the name of a very likely co: Sheikh Maktoum Hasher Maktoum al Maktoum

More from the archive Al Fajer Propertie

critical discussion about the Saab Deal

and Saabunited.com

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Al Fajer Properties Case opened on Wednesday – lawsuit also targets Sheikh Hasher Maktoum`s daughter as a partner of the firm and the son, Sheikh Maktoum Hasher Maktoum Juma Maktoum

Posted by 7starsdubai on March 17, 2009

DUBAI, Mar 11, 2009 source Zawya

An Iranian businessman ( Shahram Abdulla Zadeh )  is suing members of Dubai’s ruling family for close to two billion dollars over real estate investments, in a case which opened on Wednesday.

Shahram Abdullah Zadeh, former CEO of Al-Fajer Properties
who was fired in 2008, has filed the lawsuit against the firm and its owner Sheikh Hasher Maktoum bin Jumaa al-Maktoum, a brother-in-law of the emirate’s ruler, Sheikh Mohammed bin Rashid al-Maktoum.

The lawsuit also targets Sheikh Hasher’s daughter as a partner of the firm and a son, Sheikh Maktoum, who has since been appointed president of Al-Fajer, according to legal documents obtained by AFP.

The case demands the “recovery of all material assets of Al-Fajer Properties
which gave no immediate reaction to the opening of the case.

Zadeh insists he was the real owner of the company and the only investor.

He had used Sheikh Hasher’s name to obtain the firm’s licence, as foreigners are not allowed to register real estate companies under their own name in the United Arab Emirates.

“I was the sole investor. Al-Fajer Properties
is my company. Sheikh Hasher’s only contribution has been the real estate licence as a sponsor,” he told AFP.

Zadeh is demanding seven billion dirhams (1.9 billion dollars), which “includes the plaintiff’s investments and the return on them,” his lawyer Salem al-Shaali said.

“We have enough documents to prove he was the sole investor,” he added.

Only a representative of the plaintiff’s lawyer was in the Dubai court of first instance for the hearing, which lasted a few minutes. The court’s list named Al-Fajer as the defendant, with no mention of the Maktoums.

The judge referred to them by numbers before the hearing was adjourned to April 8.

Zadeh has said he was detained by Dubai police without charge for 60 days last year, at the same time as he was dismissed, and that his passport was confiscated for a year, without an explanation.

The civil case comes as several executives from high-profile Dubai firms are 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 slowdown.


also pulished in Press TV

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Comment of the Week – to Al Fajer Properties Dubai

Posted by 7starsdubai on March 11, 2009

I am not a lawyer, but as a real estate investor I am familiar with the real estate license being registered in the name of a local because the laws do not permit a non UAE national to be the owner of a real estate company. Every single real estate company I know has done the same thing.

The big question is,



I don’t know any of the parties involved. I fail to understand why they have taken over Al fajer Properties when zadeh was detained without any charges for 2 months???? wHY THE AUTHORITIES ARE NOT REPLYING ABOUT THE 2 MONTHS JAIL WITHOUT CHARGES??This is going to damage dubai’s reputation and will hurt the rest of the real estate market because at the end, dubai will be regarded as a city that investors do not have the basic security. So what is the difference between Dubai and Zimbabwe? Mugabe did the same to my parents’ farms.

Very sad, because it affects all our businesses.

Dear John, I am sure sheikh hasher maktoum is an honorable man in your eyes but sheikh hasher and zadeh have to be treated equally under the law or we have to accept Dubai is Zimbabwe

read more about ….. Al Fajer Properties

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Al Fajer Properties – Comment of the day

Posted by 7starsdubai on March 5, 2009

dubai-2009-globus-small1I started with Al Fajer Properties from day 1 under Dr. Shahram and saw how he invested his money, dedicated his time 24/7 and created a brand out of Al Fajer. Sheikh Hasher Maktoum is an old fashioned 65 year old who loves gossip and whispers.

All the Al Fajer staff witnessed how Dr. Shahram fought with Al Ahmadiah (sheikh hasher’s contracting company that was building the towers for al fajer), because Al Ahmadiah was not doing anything on site. That was damaging Al fajer Properties name and Dr. Shahram felt responsible towards the investors and thats what triggered sheikh hasher maktoum’s aggressive behaviour towards Dr shahram.

The son, Sheikh Maktoum Hasher Al maktoum, was a nobody. Even Sheikh Hasher always told us not to let him in the office! I remember sheikh maktoum hasher used to call Dr. Shahram’s secretary or the receptionist and request to book the meeting room to bring his friends and show off!!!

When Dr Shahram disappeared, we were told by sheikh maktoum hasher that the state security has taken him and he is never coming back!!! That was the begining of a series of illegal activity by sheikh maktoum hasher in the company, including changing documents, illegal sales of properties, threatening many staff members with state security arrests,…etc

Everyone in Al Fajer knows that Dr. Shahram was & is the owner of Al Fajer Properties. Sheikh maktoum hasher always uses his “uncles” name Sheikh Mohammed Bin rashid, the dubai ruler to threaten people.

The rest of the world is not stupid, somebody is locked up for 60 days, tortured, passport confiscated for a year, no charges against him, his business has been stolen by the brother in law of dubai ruler, the case he filed at the public prosecution is closed without an explanation.

Is this the fair, just society that sheikh mohammed bin rashid has envisioned in his Dubai Strategy? So the government is actively helping criminals? Why nobody dares to talk?

Al Fajer Employee
22. February 2009

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Al Fajer Properties Scandal – Comment of the day

Posted by 7starsdubai on March 4, 2009

what-aboutComment of the day – to 7starsdubai by Sulaiman

May be Altik you have been coming here for 30 years and have seen the locals stealing from the foreigners. But that is wrong to say all locals are the same. The big fuss is that its the first time a sheikh from the al maktoum family stealing a company from its true owner, threatening the staff and then going ahead to partner with a crook like kabir mulchandani in a mass misrepresentation campaign showing construction photos that don’t exist and cheating investors thanks to the arrogant support of sheikh maktoum hasher al maktoum the nephew of the dubai ruler.

Dubai is not a bad place and has wonderful people, its just that the law is not enforced equally and that has been more evident recently. Dubai can not afford to continue to allow such injustice towards investors while a junior member of the royal family is pocketing the money.

Sheikh mohammed himself is a man of law and order, its the clan around him who are corrupted and take advantage of the situation. That happens in many countries by the way, but normally the courts are supposed to be independent, in here unfortunately, dubai police, public prosecution, courts are all biased towards prominent locals who get away from such criminal acts as al fajer properties and dynasty zarooni.

read more about …..

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Maktoum Hasher Maktoum Al Maktoum Interview – The easy money maker – From the Archive

Posted by 7starsdubai on March 4, 2009

Sheikh Maktoum Hasher Maktoum bin Juma al Maktoum loves to win – on the racing track and in business, writes Andrew Cave

original published in 2007  telegraph uk

maktoum-hasher-maktoum-faceSheikh Maktoum Hasher Maktoum Al Maktoum is sitting surrounded by bodyguards trying to explain how easy it has been to make money in booming Dubai.

“If you invested 10pc down, say $300,000, in new-build properties and waited for them to be built and rented out, over five years the rent increased so much that if you sold them you could get profits of $10m,” he says at his family-owned Jumeirah Carlton Hotel in Knightsbridge.

Dubai has had the highest yield return for offices anywhere in the world, and it is still very high-yielding.”

Similar returns have apparently been available all over the tiny emirate state, according to Maktoum, a nephew of Dubai’s ruler, Sheikh Mohammed.

Large villas on The Palms, the controversial offshore development popular with Premiership footballers, could be bought for £630,000 six years ago, he says. They now fetch £2.5m.

“Anyone who bought there would have made a killing,” says Maktoum, who clearly did so himself. “I bought a couple,” he confirms, adding that his investment success helped increase his company’s value tenfold in four years.”

Maktoum, 30, who is dyslexic, seems to have found that grand prix racing cars are pretty profitable too, even if they did wreak collateral damage on his slender frame.

“I have broken every bone in my body except my spinal column motor racing, skiing, mountain biking: anything that involved danger,” he says.

At the age of 26, Maktoum set up A1 Grand Prix as a winter “world cup of motorsport” to rival Formula One, launching the venture in 2004 and selling out last year after a successful first year of competition. Hedge fund group RAB Capital bought 80pc of the venture for a reported £100m.

So how much money did he make?

Maktoum starts to look nervous. He’s apparently not allowed to say, as part of the contractual arrangements of the sale, but suggestions by a trade newspaper that he pocketed £5m profit look to be a bit light.

“I cannot say I did not make £5m,” he says eventually, “but had someone offered me that, I would not have taken it.”

“I achieved all my financial goals,” says Maktoum. “I had a very, very nice return on my investment. It was a project for me to prove myself; something for me to get my teeth into. And it has been a huge success.

“I sold it because I achieved my financial targets. It took me three years. It was a very challenging project but it has proved what I can do.

“A1 was a big risk. I planned the whole project myself.” Maktoum hadn’t lain idle before that. He helped his father run Al Fajer Group, one of the largest office contractors and developers in Dubai and was one of the founding investors in the first Virgin Megastore in the United Arab Emirates.

He also became a big personal investor in property. Now he plans to go into consumer electronics through his holding company DIHC.

So is he setting himself up as Dubai’s answer to Sir Alan Sugar?

Maktoum shrugs off the comparison but is hugely excited about the mass market product he is patenting. He thinks it can become very, very big. But does he really need to make even more money? He takes the question seriously. “When you achieve most of your dreams by the age of 30, you can become very introspective,” he says.

“The most important things in life are friends and family. I think you have to achieve a blend. You have to try to give something back. I don’t want to be the richest man in the human race. That’s not my game.”

Instead, he says he has been approached to help his state government in a fund management project and also has opportunities to get involved with hedge funds and to go on the board of a US private equity group.

Maktoum has the well-mannered poise of many of his oil-rich contemporaries. Still single, he is bashful about his private life and the delicate question of how much he is worth. He is predictably supportive of Dubai’s increasing involvement in western capital markets, such as Dubai Ports World’s £3.3bn takeover of Britain’s ports and ferries group P&O in 2005, and Dubai International Capital’s purchase of Tussauds Group.

He also applauds Sheikh Mohammed’s huge development of Dubai’s tourism industry to make up for the expected loss of oil revenues.

“It’s a very efficient way to move,” he says. “If you are the government, you want to make the economy efficient and generate less red tape.

“Sheikh Mohammed has seen the challenges ahead and is responding to them. He is a real visionary.

“There is still a lot of value being created in Dubai. Last year we had one of the biggest stock market crash anywhere in the world, with stock prices going down by 60pc to 70pc, but it is still a pretty rewarding place, which has had some of the best stock market growth anywhere in the world.

“Fifty years ago, Dubai was a little desert oasis. Dubai now is like the swinging 1920s in America. We have had a big crash. It is not to say that we will not have a big crash again, but there has been a lot of success as well.”

It’s easy to be sanguine about a financial crisis when you took sufficient precautions beforehand. Maktoum’s claim that he has a “gut instinct” for finance and markets seems to have been borne out by his actions this time.

“A month before the crash, I thought something was happening and sold a lot of my investments,” he says.

“Part of my success is that I am not greedy… You want to leave a party while it is still going on. You don’t want to leave at 3am. I want to leave something when it feels good.”

Read also: Criminal complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Al Maktoum


Shahram Zadeh Lawsuit against Al Fajer Properties Dubai


Posted in Dubai, Jumeirah Business Centre, Sheikh Maktoum Hasher Al Maktoum | Tagged: , , , | Comments Off on Maktoum Hasher Maktoum Al Maktoum Interview – The easy money maker – From the Archive

Al Fajer Properties Dubai – For all who ask 7starsDubai about a construction Update Jumeriah Business Centre 8 and 9, or Ebony and Ivory Tower by Al Fajer Properties – Dynasty Zarooni

Posted by 7starsdubai on February 25, 2009

Here we go. Construction Update Jumeirah Business Centre 9  , Plot H3 the so called Ebony Tower Jumeirah Lake Towers Dubai, construction status 15 February 2009, original published Skyscrapercity

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Posted in Dubai, Jumeirah Business Centre | Tagged: , , | 1 Comment »

Now it getting agressive in Dubai ? – Hunting complaining Investors – Dynasty Zarooni Fraud – Kabir Mulchandani hit back with a counterclaim

Posted by 7starsdubai on February 13, 2009


fraudThe executive at the centre of $100m fraud allegations rocking Dubai’s property sector has hit back with a counterclaim that his accusers have defaulted on more than $18m of debts owed to his company.

Kabir Mulchandani, chairman of Dynasty Zarooni, claimed that a series of cheques written by investors had bounced as the real estate industry’s fortunes plunged late last year.

The case – involving one of Dubai’s largest private real estate companies – highlights concerns that the emirate’s legal system is poorly equipped to cope with the slew of disputes arising as the sector turns sour.

Dynasty and Mr Mulchandani deny investor allegations of fraud and misrepresentation of the group’s property portfolio.

In an interview at Dubai’s Port Rashid police station, where he has been held since last month, Mr Mulchandani told the Financial Times he was pursuing cheques totalling Dh68m ($18.5m, €14.5m, £13m) that were written by Dynasty investors to pay for property. He claimed they bounced in late December as the international financial crisis hit the emirate’s business community.

dynasty-zarooniHe said: “Certain key investors who had issued post-dated cheques to us got caught in the financial trap. They could not pay.”

Mr Mulchandani said he suspected the investors whose cheques he alleges bounced – a criminal offence in Dubai – had made the accusations of fraud against him because they saw it as a way to recover money after the market fell.

Salem Al Shaali, who is representing investors claiming up to Dh280m from Dynasty, admitted some of their cheques had not cleared. But he said this was because his clients had decided not to honour the cheques because of their suspicions about Mr Mulchandani.

His clients had deposited cheques covering the money they owed, he added, showing that they had the ability to pay if their allegations against the company were satisfactorily addressed.

Hundreds of complaints have been made against Mr Mulchandani, but the initial claims at the heart of the case came from 10 individuals known as Dynasty’s “investment club”. Mr Shaali said: “Mr Mulchandani broke Dubai’s real estate laws by selling properties without a proper licence and misrepresenting construction progress at the buildings”.

Mr Mulchandani, an Indian national, said he was being well treated in custody but expressed frustration at the time taken to investigate a case in which he said he had “nothing to hide”. He is expecting a hearing this week over whether he can receive bail.

He said: “This is a wonderful country but … it is still gearing up to deal with these complaints, because this is the first time they have had a property meltdown.”

The Dynasty imbroglio is a further blow to confidence in Dubai as it scrambles to cope with the sudden end of a six-year property boom on which a good part of its modern-day wealth is founded.

More than 25 executives have been detained over the past year in anti-corruption investigations at state-linked property companies, while lawyers say more claims against private sector property developers are likely to emerge this year as prices collapse and funding dries up.

Posted in Dubai, Kabir Mulchandani | Tagged: , , , , , | Comments Off on Now it getting agressive in Dubai ? – Hunting complaining Investors – Dynasty Zarooni Fraud – Kabir Mulchandani hit back with a counterclaim

News from Dynasty Zarooni and Al Fajer Properties – I’m the victim’, says property tycoon

Posted by 7starsdubai on February 12, 2009


  • Last Updated: February 11. 2009 10:28PM UAE / February 11. 2009 6:28PM GMT
  • fraud1Kabir Mulchandani, an Indian property tycoon detained by police in Dubai, says people who are accusing him of fraud are trying to get out of investments that turned sour because of the property downturn.

    The chairman of Dynasty Zarooni is being held because more than 25 investors, with claims worth Dh280 million (US$76.2m), have accused him of fraudulently selling them property and running an illegal investment scheme, a lawyer for the investors said. Mr Mulchandani, 36, denies the accusations and says he is being targeted by a group of investors who are unable to meet their obligations as the property market deteriorates.

    “I am the victim here,” he said. “After Lehman Brothers went bust the world changed… The system is being misused by certain individuals who are just wanting money and wanting to get out of commitments they have made that they are not able to fulfil because the market has turned.”

    Mr Mulchandani said his case was likely to be a predecessor to a rash of similar cases caused by the decline in the property market. Dubai property prices have fallen by about 25 per cent since hitting a peak last year.

    “It is going to turn into a bloodbath of attacks by investors who just want to get out of obligations,” he said. “Do you think I would be sitting here had the market been OK?”

    Dynasty Zarooni, a joint venture between Mr Mulchandani and Hilal al Zarooni, an Emirati businessman, is one of the highest profile property companies to come under scrutiny by the authorities since the property market began to fall late last year. The company was the top newspaper advertising buyer in the Emirates last year, spending $14.6m and topping the likes of Nakheel and Emaar Properties, according to figures from the Pan Arab Research Centre. Its advertising spending ranked 10th across the Middle East.

    The company, founded in 2005, is a property resale and marketing operation. It has bought entire buildings off-plan from developers with a bulk discount and re-sold floors and units to investors at a premium. Then, as a service to these core investors, it would market the buildings prominently around the country to facilitate their resale to retail buyers. Usually, Dynasty Zarooni would play a middleman role for the first payments and then contracts would be issued between the buyer and the developer, cutting the company out of the deal.

    It sold 29 buildings in this way last year, according to executives. The business was profitable, with Mr Mulchandani planning a foray into New York City property before his arrest.

    He lives in the Emirates Hills development in Dubai.

    A group of investors, however, allege Mr Mulchandani built his company by misleading investors, according to Salem al Shaali, a lawyer representing several investors.

    One of the allegations is that Dynasty Zarooni displayed one building and sold another.Investors said they were shown buildings that were several storeys high, and told that they were the Ebony and Ivory towers. They bought dozens of units, and in some cases several floors, of the buildings. The buildings were also misrepresented in advertising, the investors say.

    One advertisement in a daily newspaper on July 23 last year showed 24 photographs of “round the work” progress on the Ebony and Ivory projects. A caption for the photographs reads: “Shot at location on 10th June 2008. Ebony & Ivory – Jumeirah Lakes Towers.”

     In fact, the images showed other buildings in the Jumeirah Business Centre complex that were further advanced in construction.

    Work on the Ebony and Ivory towers plots still has advanced only to shoring and piling. A contractor has yet to be chosen for the Dh2 billion project.

    sandhole-g32The Picture shows the construction Status of today 2009, Ivory Tower ( or named Juemirah Business Centre 9, Developer Al Fajer Properties, Jumeirah Lake Towers Dubai)

    Al Fajer Properties, the developer of Ebony and Ivory towers, said a construction contract would soon be signed for the towers, which it said were to be finished between next year and 2012.    An Al Fajer spokesman declined to comment on the issue.

    Mr Mulchandani said the advertisements were meant to show the larger Jumeirah Business Centre complex and depict Al Fajer as a hard-working developer.

    “I don’t believe it is misrepresentative in any way,” he said.

    He said the company had sold the entire building in April and that the investors involved in claims against him had signed contracts that detailed which plot of land the buildings were to be built on.

    Claims have emerged involving other projects that were bought and resold by Dynasty Zarooni, including the Sheffield Classique and Al Qoraishi Tower, according to Mr al Shaali.

    Imran Karim, the son of an investor taking action against Mr Mulchandani, said his father, Abid Karim, was sold units in the Classique and Al Qoraishi Tower under the impression that Dynasty Zarooni was the developer.

    Mr Mulchandani said he never represented himself as a developer.

    Officials from Sheffield Real Estate and Baiti Properties Development, the developer behind the Al Qoraishi Tower, declined to comment.

    Another allegation against Mr Mulchandani is that he created an illegal “investment club” where 12 investors were invited to pay Dh300,000 a month for 12 months for a guaranteed return of up to Dh1m a month. After six months, they expected to redeem their investments, but Mr Mulchandani did not pay, investors said.

    One such investor, Mohammed Arif, who also invested with Dynasty Zarooni in several properties, said he had Dh25m with Mr Mulchandani and projects sold by Mr Mulchandani.

    “I invested a lot of money with him,” he said. “I fear the money is gone.”

    Mr Mulchandani said the Dh300,000 was actually a membership fee for 12 investors who bought from him in bulk. The fee would give the members the first right of refusal to buy up to 5 per cent of buildings that Dynasty Zarooni acquired, as well as use of the Dynasty Zarooni offices for resales. The fee also contributed to advertising, he added.

    Marwan bin Ghalita, the chief executive of the Real Estate Regulatory Authority (RERA), declined to comment on the accusations against Dynasty Zarooni. In November, RERA stated that there were no complaints against Dynasty Zarooni, after allegations in two Indian publications that the company had sold projects while representing to investors that they were buying another project.

    Officials from the Dubai Public Prosecution declined to give details on the cases, but confirmed staff members were investigating the claims.

    Posted in Dubai, Jumeirah Business Centre, Kabir Mulchandani | Tagged: , , , | Comments Off on News from Dynasty Zarooni and Al Fajer Properties – I’m the victim’, says property tycoon

    An Example of : The differenence between PR and Reality – 5 Towers Jumeirah Business Centres will be delivered in September 2009 ?????

    Posted by 7starsdubai on February 12, 2009

    Jumeirah Business Centre 1 , Developer Al Fajer Properties  was launched Dezember 2005. Sold within a few weeks after the launch, said by the company. The completion of this Office Tower was announced first for end 2007 , after this end 2008 and now end….. of year ……… ???

    The History between PR and Reality show this pictures:

    Happy going ? …. 2006   sand-castle-photo-july-20062








    Construction Status of Jumeirah Business Centre 1,launched in December 2005,  Plot G2, Jumeirah Lake Towers, Al Fajer Properties 




    Jumeirah Business Centre  1 by Al Fajer Properties Construction Status in May 2007




    jbc1-feb-2009-panorama1Panorama of February 2009 shows that the Towers around Jumeirah Business  Centre 1( those Towers around also launched in 2005) are still ready.

    The completion of the Jumeirah Business Centre 1, the first ever launched Tower of Al Fajer Properties is…………. ??????????

    Latest interview , February 2009,with the project Manager , construction company, for Al Fajer Properties:

    o3. Feb. 2009 7days.ae  


    ………“[The atmosphere in construction] is a bit depressed, but I think Dubai and the UAE in general is much better off in general than the rest of the world,” said Andre van Schalkwyk of Al Ahmadiah Contracting and Trading (AAC), who is site manager of Al Fajer Properties’ Jumeirah Business Centre.

    He added however, that his workers are more confident of their position, as he believes AAC will outlive the downturn.

    “The workers are not anxious, AAC has a very stable working environment and we tend not to over extend ourselves, which makes it much easier to get through downturns, particularly of this magnitude. I think we’re a lot better off than a lot of other companies,” he said.
    Van Schalkwyk has been working in construction in Dubai for six years and has always found it challenging.
    “[Challenges] are very simple – usually time and Dubai has a knack for changing things very suddenly!”
    “It’s the changing environment that is your biggest challenge in the whole construction industry,” he said.

    His current development with Al Fajer Properties is the largest he has been involved with since coming to Dubai, although he has been part of big projects such as Ibn Battuta Mall.
    Jumeirah Business Centre is a group of five high-rise office buildings in the Jumeirah Lakes Towers development, which are scheduled to be delivered this September.

    “The biggest challenge [with this project] is having to do five towers running exactly on the same timeframe, while not being located on the same plot. They’re in the same area but not on the same plot, that is a serious challenge, because projects are usually phased,” van Schalkwyk said.
    Back when the centre got started, he also had to deal with the cement shortage, which he said affected them “quite seriously”.However, he is “fairly confident” of reaching the September deadline for the new development.
    “After His Highness Sheikh Maktoum bin Hasher Al Maktoum came on board, it changed the whole management structure of the Al Fajer Group and we’re now managing to accelerate the project quite dramatically. We’re actually doing very well – we’re running slabs at around six, sometimes five, working days cycles,” he said.
    When Sheikh Maktoum became president of Al Fajer Properties (AFP) in March last year, workers were working days and knocking off at night, but now construction takes place round the clock with the workers doing shiftwork in order to meet the delivery date.

    In fact, a lot of changes have taken place at AFP so that it can streamline its business and meet its obligations.
    Joseph Paul, finance manager at AFP, told 7DAYS that a “planning and financial restructuring” had taken place last March, which resulted in the entire land bank of the company being disposed of by the middle of last year.
    “[This] has turned out to be an excellent decision, keeping in view the current drastic devaluation of land,” he said.
    “Because of apt and timely decisions, AFP is still in a robust position to operate with zero debt, even in this worst scenario of world economic recession.”

    Van Schalkwyk also sees the upside of downturn, particularly for real estate and construction.
    “I think there will be a lot more stability and sense in the market. My personal belief is that the downturn at the moment is a bit of a blessing in disguise – it will stabilise the market and I believe we will get a much more healthy growth afterwards,” he said.

    And despite the myriad announcements of job cuts in the sector, he feels construction won’t stay down for long.
    “I think in the next two to three years, the workforce will shrink overall – but then it will grow again,” he said.

    Posted in Dubai, Jumeirah Business Centre | Tagged: , , , , | Comments Off on An Example of : The differenence between PR and Reality – 5 Towers Jumeirah Business Centres will be delivered in September 2009 ?????

    Dubai Fraud alligations – The Case Dynasty Zarooni: Complaint at Dubai Police now also against Al Fajer Properties

    Posted by 7starsdubai on February 10, 2009

    original published Financial Times



    fraud1Dubai Police are investigating fraud allegations against the chairman of one of Dubai’s largest private real estate companies as dozens of aggrieved investors claim he defrauded them of more than $100m.

    Kabir Mulchandani, the chairman of Dynasty Zarooni, was arrested last week on allegations of fraud and is helping with inquiries, police officers told the Financial Times.

    At least 10 members of Dynasty Zarooni’s ”investment club”, which last year promised vast profits from the company’s preferential access to real estate deals, have lodged complaints against Mr Mulchandani, an Indian national, his Emirati business partner, Hilal Al Zarooni, their joint venture Dynasty Zarooni, and two other employees.

    Investors say that Mr Mulchandani in March received subscription fees of Dh300,000 a month from 12 members. He promised them returns of Dh1m a month after six months, or Dh6m, in September, they say.

    One British loser says he was encouraged by initial profits made by another club member, who had reinvested the proceeds into the scheme rather than taking the cash.

    The fraud allegations weigh further on Dubai’s financial hangover as its six-year property boom fizzles out, with investor confidence hitting rock bottom as people are marooned in an illiquid, declining market while developers are hamstrung by financing difficulties.

    More than 25 executives have been detained in an anti-corruption investigation at state-linked property companies. None have gone to trial yet, but the arrests have had an impact on investor confidence in Dubai.

    News of the complaints against the chairman could raise concerns among other investors in Dynasty Zarooni’s claimed Dh21bn real estate portfolio.

    Mr Zarooni denied any participation in, or knowledge of, a fraudulent scheme. ”One hundred per cent I deny this, there is nothing illegal whatsoever,” he said.

    Mr Mulchandani, who has been detained but is seeking bail, could not be reached for comment. He denied any wrongdoing in a local press interview last week.

    Lawyers say more than 100 other investors are preparing cases against Dynasty Zarooni over misrepresentation during the sale of its real estate projects.

    ebony-ivory-al-fajer-properties-plot-h3-g3-jlt-dubaiOne aggrieved investor, who in May placed a 20 per cent deposit on an apartment in Ebony Tower 1, opposite the Dubai Marina, for Dh650,000, yesterday lodged a complaint with the police against Dynasty Zarooni and their development partners, Al Fajer Properties, for allegedly misleading him about the progress made on the building’s construction, thereby raising the supposed value of the property. ”I have been cheated and am very distressed,” he said.

    The cases, if they go to trial, could seek the recovery of hundreds of millions of UAE dirhams, said Salem Shaali, managing partner at Al Shaali & Co, which is representing the victims of the alleged fraud.

    This could develop into one of the UAE’s largest fraud cases if other individual investors in Dynasty Zarooni come forward, he said.

    Posted in Dubai, Jumeirah Business Centre, Kabir Mulchandani | Tagged: , , , | 1 Comment »

    Dubai Dynasty Zarooni Fraud Allegations Widen,Bail At AED400M

    Posted by 7starsdubai on February 4, 2009

            By Stefania Bianchi

            Of ZAWYA DOW JONES

            DUBAI (Zawya Dow Jones)–Dubai’s public prosecution has raised the bail to 400 million U.A.E. dirhams ($108 million) for Dynasty Zarooni’s Chairman Kabir Mulchandani, who is being held by police on fraud allegations, as more aggrieved investors lodge complaints, officials said.

            Mulchandani, whose mobile phone was turned off when called by Zawya Dow Jones Thursday, has previously denied any wrongdoing.

            An official at the public prosecution told Zawya Dow Jones that Mulchandani is being held on allegations of “fraud and embezzlement” and that he would have to pay the full bail amount in order to be released.

            According to lawyers at Al Shaali & Co., one of a number of Dubai-based law firms acting on behalf of the investors pursuing Mulchandani, the cases against the Indian businessman and Dynasty Zarooni involves projects in Dubai and Abu Dhabi worth more than AED5 billion.

            “We’re currently handling about AED500 million worth of cases,” Said Al Akkad from Al Shaali & Co. said Thursday.

            The law firm says the final value of cases against Dynasty Zarooni could rise much higher as other investors involved in Dynasty Zarooni’s apparent AED21 billion real estate portfolio come forward.

            “There are a lot more investors out there who want to file complaints against Dynasty Zarooni. The whole process takes a long time,” said Al Akkad.

            Mulchandani was arrested by police in early January and has since been referred to the public prosecution. Mulchandani’s bail was set at AED76 million when he was first arrested.

            Hilal Al Zarooni, Mulchandani’s local partner in Dubai, referred Zawya Dow Jones to his lawyers Global Advocates & Legal Consultants when called. Global, who are also representing Mulchandani and the company Dynasty Zarooni, declined to comment on the case.


            Investors at six of Dynasty Zarooni’s developments worth approximately AED6.35 billion have so far lodged complaints with the police, according to Al Shaali & Co.

            The complaints so far refer to property at the company’s Ebony & Ivory, Berlin Tower, K Hotel, Panoramic Heights, Sheffield Classique and Al Quorashi Tower developments. The cases include the taking of deposits and installment payments without depositing the money into an escrow account, the issuing of contracts worth just AED1 after the full value of the property has been paid and the misrepresentation of property during the sale.

            Some investors at the Ebony and Ivory project in Dubai’s Jumeirah Lake Towers district have also lodged a complaint with the police against Dynasty Zarooni for allegedly misleading them about the progress made on the building’s construction. Prominent advertising campaigns in Dubai showed pictures of the Ebony and Ivory real estate project under construction 24 hours a day, but a visit to the site by Zawya Dow Jones revealed that no work was underway.

            In an advertising campaign published in local media last year the company said that as a company it had earned AED20 billion in revenue, as well as AED6 billion for its investors.

            Lawyers say Mulchandani is also being investigated for allegations that he conned a small group of wealthy investors into pledging large sums of money with the promise of a hefty monthly return.

            Investors interviewed by Zawya Dow Jones say Mulchandani received subscription fees of AED300,000 a month from 12 members of the so-called “investment club”. Mulchandani promised a return of a million dirhams a month after six months after investing their money in Dubai real estate projects.

            The investors say Mulchandani has so far failed to deliver any returns, or their initial capital.

            By Stefania Bianchi, Dow Jones Newswires; +971 4 3644967; stefania.bianchi@dowjones.com

            (Majdoline Hatoum in Dubai contributed to this article.)

            Copyright (c) 2009 Dow Jones & Co.

            Click here to go to Dow Jones NewsPlus, a web front page of today’s most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=CqhgwHGrhVjWVDlKy6lCLA%3D%3D. You can use this link on the day this article is published and the following day.

            (END) Dow Jones Newswires

            January 24, 2009 03:54 ET (08:54 GMT)

    Posted in Dubai, Kabir Mulchandani | Tagged: , , | Comments Off on Dubai Dynasty Zarooni Fraud Allegations Widen,Bail At AED400M

    Business Partner of Al Fajer Properties – Chairman Dynasty Zarooni arrested in Dubai

    Posted by 7starsdubai on January 7, 2009























    Read the rest of this entry »

    Posted in Dubai, Jumeirah Business Centre | Tagged: , , , | Comments Off on Business Partner of Al Fajer Properties – Chairman Dynasty Zarooni arrested in Dubai

    Dynasty Zarooni Chairman – Criminal Business Partner of Al Fajer Properties Dubai – arrested

    Posted by 7starsdubai on January 5, 2009


    UAE. The head of a Dubai-based real estate firm has denied reports that he had been arrested on allegations of fraud.

    Kabir Mulchandani, Chairman of property investment consultant Dynasty Zarooni, said in an interview for Gulf News there was no police arrest warrant against him.

    “I know some complaints have been lodged with the police by some people against our firm but these people gave cheques that bounced. They have no legitimate reason to complain,” he explained over the phone.

    He said the company was “in good shape.”

    Company President Hilal Al Zarouni said the company is “functioning properly”. Both executives said they didn’t know if the police were investigating the complaints.

    Lawyer Salim Al Sha’ali, who represents a number of complainants, said the complaints are related to an alleged fraud scheme.

    “We have been studying the legalities of the case… and we believe that there is a supposed crime of conning people out of money,” he said.

    The Federal Penal Code and the property laws issued lately are the legal grounds in this case, argued the lawyer. Sources said the complaints involve some 30 investors with at least US$1 million each invested with Dynasty Zarooni.

    However, Mulchandani denied the accusations and said he has “all the documents that support our position that those people have reneged on their commitments”.

    Reports yesterday claimed clients said they paid AED 300,000 per month for which Mulchandani promised a return of AED 1 million a month after the first six installments. But Kabir Mulchandani said that the montly payment was a fee for investors to secure first refusal on properties sold by Dynasty Zarooni at pre-launch prices, an average discount of between 2% and 5%. And he insists no returns were ever guaranteed.

    “There is not a single document, email, a fax, an SMS, that anybody can produce in Dubai or elsewhere in the world that in any way represents that we guaranteed any form of return,” he said.

    He added that many investors had actually made far more than the guaranteed return he is claimed to have given, despite the slump in the property market.

    He said: “This is a case of people having a situation where they can’t meet their obligations, which is unfortunate, but they shouldn’t have over-traded. You can’t buy what you can’t pay for.”

    He said those making the complaints against him had bounced post-dated cheques given to the company for both the membership fee and for the properties they purchased.

    Mulchandani had left India for Dubai where he set up Dynasty Zarouni, to cash in on Dubai’s booming real estate market.

    Kabir Mulchandani is also the founder of Baron International, the Mumbai company that pioneered cheap colour TVs and music systems under the brand names Aiwa and Akai, a firm which came under scrutiny from the DRI and Enforcement Directorate in India.

    Dynasty Zarooni markets ready-to-move in properties constructed by Dubai real estate company Al Fajer. The firm advertises these properties on his website and invites NRIs to invest money.

    Al Fajer is known for its projects in Jumeirah Business Centre 1 and 2 apart from various projects at Jumeirah Lakes and Jumeirah Island.

    Dubai’s Real Estate Regulatory Authority (RERA) is probing the company’s operations after nearly 30 NRIs from India, Russia and UK complained online that he had misled them by showing a different property and selling them another

    RERA authorities are reported to have told Indian newspapers that the firm had also not followed the local rule of depositing sale proceeds of real estate properties into a government-shared escrow account.

    One particular complaint cites how Mulchandani allegedly sold apartments in a three-tower complex, showing the two completed towers as the properties that were for sale but allotting ownership documents of the third tower which has yet to come up.

    Speaking to Mumbai Mirror RERA’s head of legal cell, Imad Hussein, is reported as saying: “We have received complaints of 30 investors from India, Russia and the UK. The company Dynasty Zarouni offered real estate properties at half the market price.

    “It also allegedly lured investors by misrepresenting a different property in the name of another. Each buyer has invested at least US$1 million with the firm.”

    According to Hussein: “We have invited all investors with similar complaints through advertisements in local newspapers to come forward, and have assured them that RERA will play an active role in safeguarding their money under law number 8 in line with the directives of Dubai’s ruler Sheikh Mohammed.”

    Posted in Dubai, Jumeirah Business Centre, Kabir Mulchandani | Tagged: , , , , , | Comments Off on Dynasty Zarooni Chairman – Criminal Business Partner of Al Fajer Properties Dubai – arrested

    Real Estate Agents: Dubai Boom Is Ending

    Posted by 7starsdubai on October 28, 2008


    Stefania Bianchi, Mirna Sleiman and Stefania Bianchi report from Dubai for Zawya Dow Jones.

    A six-year real estate boom in Dubai that spurred a $475 billion building frenzy has ended, according to agents who say sales are collapsing amid fears that the global economic downturn will hit the sheikdom.

    “Last month was a real disaster and worse is coming I guess,” Mehdi Zoghbi, an agent at Middle East Real Estate Consultants, told Zawya Dow Jones Sunday.

    Zoghbi says that desperate sellers are now offering off-plan properties on the secondary market for a zero premium, effectively accepting a loss on their investment in order to offload quickly. Dubai, the first Gulf sheikdom to allow foreigners rights to buy homes, may also be the first to see a crash in property prices.

    “Our commissions have fallen by up to 70% recently,” said Khaled Daji, an agent at Al Jabal Real Estate. “The most hit are the projects under development and those luxurious high end. We plan to survive for another six months to see how this crisis unfolds.”

    But the city’s biggest developers like Emaar Properties PJSC and Nakheel are adamant that sales remain robust. Mohammed Alabbar, Emaar’s chairman and one of the architects of Dubai’s real estate boom, said in the company’s third-quarter statement that “we are very confident of our company’s fundamentals and future growth.”

    That hasn’t stopped investors dropping the company’s shares. Emaar’s stock has fallen 62% since the beginning of the year, that’s more than the 48% fall in the Dubai Financial Market’s main index over the same period, according to Zawya.com data. Earlier this month, Colliers International said the growth of property prices in Dubai slowed to 16% in the second quarter of 2008 from 42% in the first quarter. Morgan Stanley warned in August that property hotspot Dubai could see a 10% fall in prices by 2010.

    A collapse in real estate prices will add to pressure on Dubai’s economy, which doesn’t benefit from the vast oil income enjoyed by neighboring Abu Dhabi. Property and construction are estimated to account for about 30% of the emirate’s economy.

    Meanwhile, the nerve – and wallets – of Dubai’s shoppers will be tested this week when, against a tide of global economic woe, the region’s largest shopping mall opens. Covering an area of more than 50 soccer fields, Dubai Mall will have more than 1,200 shops; one of the world’s largest indoor gaming arcades; an Olympic-size ice rink; the world’s largest indoor Gold Souk; and one of the world’s biggest aquariums, which will be home to more than 33,000 types of sea life, including over 400 sharks.

    Report offensive comments to blogsadmin@wsj.com

    Global recession resulted global oil, housing, commodities asset prices bubbles burst, plunge more than 50 % will be spread into oil consuming and oil producing countries
    details on

    Comment by Warren HuangOctober 27, 2008 at 7:19 pm

    cool article

    Comment by hue g. rectionOctober 27, 2008 at 8:06 pm

    Stefania and Mirna, thanks for this article. Interesting to see how other people are living and investing.

    Comment by tom a taxpayerOctober 27, 2008 at 11:08 pm

    A fall in prices may actually benefit Dubai in the long term.

    The escalation in cost of living in Dubai, driven by property and rent prices, has become unsustainable.

    And speculation will end leading to more realistic valuation of assets.It has clearly been a speculative market when a

    down payment of 20 per cent provides a 100 to 150% per cent in a less than a year from property flipping.

    Comment by Dave SternOctober 28, 2008 at 12:35 am

    As someone who lives “on the ground” here in Abu Dhabi, I can tell you that Dave Stern’s comment is incorrect:

    the locals have been taking out personal bank loans to cover just 2 to 3 month’s mortgage payments and then

    flipping properties within that time (not a year!).

    They were buying up to six properties at a time in this manner.

    These purchases were all “off plan”, the properties were not even under construction.

    This is why the real estate market was, ultimately, unsustainable.

    Comment by Jan NewtonOctober 28, 2008 at 1:02 am

    I have been a doomsayer of the Indian real estate market when I predicted the fall in February 2008 –

    The Arabic leverage is up to 100 times capital. I have personally know of business center receptionist

    doubling up as a “real estate flipper” and now has overleveraged and stuck in properties that are not even

    under construction. It is normal for authorities to blow their trumpets, but expect their sounds to end in a

    Big Blowup in their faces.
    A cataclysmic disaster and perhaps the start of Dubai’s fall like Beirut before and Aden even before that.

    Comment by Cataclysmic Collapse of Dubai ExpectedOctober 28, 2008 at 2:26 am

    Castles in the sand?

    Comment by tom a taxpayerOctober 28, 2008 at 2:50 am

    Currently panic is ruling the markets all over the world irrationally.

    There is no exception, however, the Arabian Gulf have strong economic fundamentals and the recovery

    will be much faster than in the West. As a matter of fact, the Q3 financial results of the biggest market players

    for the are better than the Q3 results in 2007.
    From the position of commercial property broker in Dubai, I can assure you that corporate end-users are good

    clients at the moment. We have sold office floors in Business Bay during the last month and recently preparing t

    he transactions of commercial properties in Jumeirah Lake Towers.

    In times of crisis there are losers and winners.

    Comment by Gergana MinevaOctober 28, 2008 at 4:33 am

    When junk emails started arriving in one of my “special” email boxes – promising pie-in-the-sky

    pre-construction deals in Dubai – went Short Oil and Emerging Markets ETFs (Thank you, Goldman oil analysts!!!)

    Comment by FederalesOctober 28, 2008 at 6:23 am

    Mr. Gergana Mineva!
    It is Persian Gulf not Arabic.
    Please use always the correct name in the future.
    Thank you!

    Comment by FarhadOctober 28, 2008 at 7:21 am

    Farhad, Dubai is essentially ruled under Shirah Law, a cruel brand of despotic fascism that harms

    women and children and is antithetical to freedom. Dubai though more “progressive”

    than most repressive regimes in Sand Land, hates Jews and will not allow the

    practice of such a “heinous” religion as Judaism. Yet you are worried about words and nomenclature.

    Words are meaningless, actions are all that matter.

    Comment by KafkaOctober 28, 2008 at 8:32 am

    OPEC’s manipulation of oil prices and speculators caused this current recession by increasing oil prices to historic levels.

    Comment by Blame OPECOctober 28, 2008 at 11:16 am

    Market is certainly undergoing a correction but to predict doom is a little foolhearty.

    There is TREMENDOUS liquidity in the market and the reserves built up during the period of

    high gas prices will certainly be deployed to stablize the realestate market which is the cornerstone of ‘

    New’Dubai. Also, Dubai is NOT ruled by shariah law. In fact, it is one of the most modern states

    in the gulf and is known for its liberal political/social environment (recent stories about sex on the beach

     not withstanding). There are a number of very successful american jews in the city so the anti-semetic

    claim is just rubbish. There is no law against practise of ANY religion.

    Visit the region before speaking

    Comment by DubaiDreamerOctober 28, 2008 at 1:33 pm

    The smart money has begun the pull out already. Bank lending is drying up.

    The only ones who continue to believe that the real estate market will go up are real estate agents

    and speculators who have not been able to off load so far. The secondary market for off-plan properties is in a free fall.

    And no amount of deliberate project delays and throwing people out of villas is going to prevent the serious

    correction that Dubai property so badly needs. It has been the most speculative, unregulated and unprotected

    market the past 6 years.

    Comment by KingsleyOctober 28, 2008 at 1:55 pm

    couldn’t have happened to a nicer group of people…

    Comment by charlieOctober 28, 2008 at 2:13 pm

    Gee, I guess the Arabs are poor for a reason = incompetence.

    High oil prices masks the basic incompetence for awhile. But stupid is as stupid does.

    Comment by CaliPOWEROctober 28, 2008 at 2:17 pm

    Cry Out Loud and you all say what you want about dubai …BUT The truth is: We Are All Loooosing!!

    The whole world is sinking…

    Comment by The True ManOctober 28, 2008 at 8:44 pm

    Kingsley makes some good points, Dubai is in need of regulation.

    Prices may be predicted to fall, but it isn’t happening yet in the rental market.

    Buyers have bought up so much of the properties and now are holding them until they can get

    their desired selling price (usually expected 20% increases from sale to sale)…leaving the rentail market

    struggling. Landloards can demand rents starting at $25,000/yr in ONE payment upfront for 450 sf studios…in empty,

     construction sites of buildings! Dubai is leaving no room for renters & the middle class.

    Rents are still exorbitant and there are few regulations in place to support the renter.

    Comment by MRODubaiOctober 28, 2008 at 11:40 pm

    As someone who lives and breathes real estate since its first days here in Dubai,

    I feel it is necessary to see the cause of the boom and only then we may be able to make some

    calculated estimates of the future market condition.
    1. Dubai real esate growth was based on a promise of freehold, residence permit, tax free benefits

    for nationalities who have certain restrictions in their countries and saw dubai as a safe secure investment opportunity.
    2. Government of dubai removed the residence permit guarantee by buying a property.

    So automatically no tax free status, coz if you are not a resident of Dubai you can not open

    bank account & you are still liable for taxes in your country.

    Comment by real estate expertOctober 29, 2008 at 12:21 am

    3.Nakheel/emaar/dubai holding factor: All these companies hate each other and therefore fight for the

    attention of sheikh mohammed, which means the greed and ego overtake logic and feasibility!!! result:

    Excessive lands/properties/ mega projects without proper planning & infrastructure in place.
    4. Universal law supply Vs. Demand: nobody realises that the already anounced projects in dubai will need

    about an extra 6 million people to live in it!!!! (From Lagoons, meydan, dubailand, tatweer, mizin,

    industrial projects, emaar, bawadi, the world, the universe, palm deira, port rashid, waterfront, arabian canal,

    dubai world central….)Excuse me thats almost double the UAE population.

    Comment by real estate expertOctober 29, 2008 at 12:29 am

    5. Loose the Confidence You loose everything: The investors/buyers are wakening up to the reality & there is

    absolutely no confidence in the market not only because of the global financial crisis but mainly because of the

    over supply & fear of the crash.

    6. Genius Government policies: dubai government is its own worst enemy, at times like this what does dubai do?

    They launch new mega projects & new development companies like meraas with ambitious projects that will only

    further dampen market confidence.
    7. Investor’s security: Dubai’s judicial system is as good as any underdeveloped country with selective rights

    depending who the complaint is against.

    Comment by real estate expertOctober 29, 2008 at 12:35 am

    8. No human rights when it comes to dubai police. infact torture and enforced disappearance has become

    common in dubai under the umberella of the state security they can attach anything to anyone to reach their

    commercial targets.
    9. Everybody owns 20% of several properties: Paying a few installments does not make you theowner so when the next installments come due and there is no quick sales like the good old days, what happens? Sell below the price or lose your deposit with the developers…. results in what we call “stress sell”

    Comment by real estate expertOctober 29, 2008 at 12:40 am

    10. Oil prices & Inflation: ofcourse oil prices doubled so did the cost of steel & cement & food & labor

    accomodation… result abnormaly increase in construction prices on a weekly basis!!!… so an increase

    in property prices due to rising cost….
    11. Decrease in Oil prices: Sudden decrease in everything from food prices, to raw materials…..

    creating sudden panic as properties are cheaper to build and a fear of further reduction is iminent.
    12. There are too many chefs in the tiny real estate kitchen of dubai, have you noticed there aren’t any

    happy faces in the media anymore!!! what happened to the so called international anouncements about their acquisitions…

    Comment by real estate expertOctober 29, 2008 at 12:45 am

    13.The Sheikh factor: when the ruling family is desperately getting into everythng from real estate,

    to owning or managing coffeshops and bakeries, landries…. then the opportunities for the public is becoming less

    and less which means a lot of unhappy UAE nationals and residents…. which everyone know will not help the already

    unstable state of dubai.
    14. Big brother factor: let there be no doubt Abu Dhabi will eventually overtake dubai for the right reasons.

     money is not an issue thanks to oil & there is no rush to sell everything just to raise funds for the previously

    anounced project like in dubai. Dubai’s power in UAE will be reduced due to lack of funds, money talks!!!

    Comment by real estate expertOctober 29, 2008 at 12:51 am

    15. regulatory body with no teeth: RERA is supposed to ensure that developers/real estate agents

    / landlords/ follow the rules and regulations… what happens if a developer or an agent does not follow the law?

     NOTHING… just a 100,000 fine… comparing to the hundreds of millions at stake its a drop in the ocean.
    16. Public Prosecution & Corruption: Everything in public prosecution is relative & variable…. there are

    cases of misrepresentation by nakheel, for example selling thousands of villas

     and after 2 years just cancelling the project…. nobody can make a complaint.

    Likewise several private developers & real estae agents operating in a fraudulent manner are let go off the hook.

    Comment by real estate expertOctober 29, 2008 at 1:54 am

    Take away the speculation and in the end it comes back to fundamentals. Rental yields on finished

    properties are currently 2-5%. Interest rates on property loans are 8-9%. Deposits on property

    purchase are 30% minimum. If you want to buy a 2 bedroom apartment in a decent location you

    would need to be earning US$200k to meet the lending criteria. The stock market in the Gulf has

    fallen 25% in th elast 30 days and real estate stocks by 60% in 9 months.

    Look for similar movement in property values.

    Comment by steveOctober 29, 2008 at 5:20 am

    Main reason dubai eco will collapse is the RUSSIAN factor.

    Comment by GB BajajOctober 30, 2008 at 1:58 pm

    The comments entered by the real estate are very impressive/ Truly an expert.

    Comment by AdmirerOctober 30, 2008 at 4:08 pm

    Great comments by the real estate expert as i call dubai an artificial market. There is onemore important point

    that expert forgot is what will happen after Sheikh Muhammad as UAE history says e.g.Sharjah.

    Advice to all expat go back to your homeland and serve for your country as Dubaidoes not have a

    nation like Oman, Bahrain , Kuwait or KSA.

    Comment by Fact FinderOctober 31, 2008 at 7:18 pm

    Well it seems everyone here is pretty sure that Dubai Property Market is done and huge Crash is in Pipeline

    (or is already there). Well no matter how much we want it but it’s not entirely Ture. The Factors Mentioned

    by “Experts” here does not have much impact on property market. Property Market depends on

    three important factors. 1) Creations of new Jobs and thus Movement of New People to area

    2) Amounts of loan banks willing to give 3) Pricing of the property
    In Case of Dubai, Companies are still very much eager to open up an office here which saves them 30% to 40%

    in direct Tax fromtheir own Country. That Means new companies, new Jobs, new demand.

    Comment by Real Estate InvestorNovember 1, 2008 at 8:56 am

    it is easier to open an Office in Dubai than Buying BMW in U.K. It Still Costs AED 10,000/-

    and every employee gets residence visa (AED 8000 per employee for three year) hence TaxFree status.

    Dubai Government investing in own companies E.G opening up Hotels, Telecome, Café and everthing

    else is also very Good for Dubai. Since 30% to 40% of Dubai’s Expat population

    work in these Companies shows how serious Dubai Government is in bringing people to Dubai.

    The 2nd factor is the bank Finance and that’s a problem right now. Due to Global Crisis Gulf Banks have huge

    Liquidity problem and that’s the reason they have Stopped Finance,(Yes Stopped) Most Banks have Already

    Reached their Yearly tar

    Comment by Real Estate investorNovember 1, 2008 at 8:57 am

    Most Banks have Already Reached their Yearly targets of cash outflow and Simply don’t have cash for mortgage.

    Hence the finance buyer which is about 60 to 70% of market cannot buy. BUT from Jan next year Banks

    will have fresh cash and hence finance will be back on track. Since Finance will be back the property market

    will tend to rise again.

    The 3rd Factor Pricing – Yes Dubai prices had increased on massive pace and yes things were gone

    up really fast but still prices were not par will other countries (similar metropolitan cities) and now

    with the correction in property prices due to the Financial problem the prices are even more attractive.

    Comment by Real Estate investorNovember 1, 2008 at 8:58 am

    No place in the world can sustain to grow above 40% annually but prices only crash only when the demand dries up. Like in U.S and U.K where most citizen already own a home and new migration is only 1 or 2% of population where as in Dubai its at 28% to 40% every year and most people here still live in rented houses. Now with that kind of new people market will not crash but yes the growth can slow to 10% to 15% will is more realistic level.

    But everything’s not that great also, Dubai Needs to a lot more to keep growing and attracting

    more expats E.G Allow more foreign ownership in local companies, give more Rights to expats,

    and introduce permanent residency with work permit.

    Please let me know if some one thinks the other way

    Comment by Real estate InvestorNovember 1, 2008 at 8:59 am

    The UAE is now a ‘Buyers’s Market’ and I hope developers improve incentives such as back-loaded payments plans etc.

    Real Estate Dubai

    Comment by AndrewNovember 1, 2008 at 1:32 pm

    in dubai…reality is, the dubai govt thinks just like any other govt in the world i.e. india, usa, uk, japan etc.

    nothing is done in dubai unless its severely needed [i.e. metro] and then its splashed with every god

    damn adv from lipstick to lingerie to condoms to repay the loans taken for it. Y?

    coz dubai govt HATES HATES HATES to pay for it from its pockets.

    Comment by analyst expatNovember 1, 2008 at 3:45 pm

    To the “Real estate Investor” who does not have a clue of what this place is like: re-read the comments

    by the “real estate expert” and by “Fact Finder” and then get rid of your investment as fast as you can and while you can.

    Yes, you would be safer if you were in Kuwait for instance, but not here. Get out of your circle and talk

    to others and get to know the real picture. Does “Pirate Coast” mean anything to you?

    Comment by Yet another fact finderNovember 2, 2008 at 1:01 am

    Dubai has been trying to imitate the West for a long time now.The current situation is a predicted end to its Western dreams

    Comment by Shaiju JanardhananNovember 2, 2008 at 6:10 am

    excellent article… it’s so nice to read objective and realistic articles (and comments) about dubai and

    their real estate market. i’m absolutely sick of reading blatent property (or any other) propaganda in Dubai’s “Newspapers”.

    Comment by michaelNovember 2, 2008 at 6:55 am

    i have read your article. wish to know few details regarding the Rental Index on Residential & commercial Properties.

    There is a situation which were i have (a tenant) is going through tough time in Dubai

    i have rented a Shop inside a Shopping Mall from past 4 years which was running in losses.

    From 10 months the customers have raised and he was doing the Breakeven.

    Suddenly the Mall is sold and New Landlord is asking for New RENT 40% increase and he is showing a

    document of RERA stating landlord can increase the Rent to Market Rates.
    i have put all his money in the business and may go bankrupt incase the situations goes out of hand

    Comment by QurashiNovember 5, 2008 at 7:26 am

    Hi guys, am glad some of the readers find my comments useful. I just would like to add that god forbid if

    anything actualy happens to our “super man sheikh” (Sheikh Mohammed) the entire wolves surrounding

    him will start eating each other as history has shown in the gulf.
    HSBC & lloyds TSB have stoped giving out mortgages to apartments in dubai what does that tell you?

    PROPERTY CRASH is inevitable but the question is how hard it will hurt the government who has nothing in the account.
    I hope I am wrong, but rumor says sheikh mohammed has had a stroke and an operation.

    God help all those who still continue to dream and believe the wonderful animations of dubailand and nakheel!!

    Comment by Real Estate ExpertNovember 11, 2008 at 10:44 am

    The real estate market in dubai has crashed already. I bought a few floors from Dynasty zarooni’s sheffield project in dubai waterfront at 2700 dhs per square feet, today i can not sell it 30% below the purchase price. Why because Dynasty Zarooni does not even own the land & they don’t even have an escrow acount, yet people have paid over 20% to their acount and there is no construction on site. RERA knows about it but does nothing.

    Comment by Dubai ResidentNovember 12, 2008 at 2:54 am

    Really impress with your knowledge Real Estate Expert. Keep us updated to whats happening in Dubai Real Estate and when it will be a good time to buy probably an year from now.

    I am based in Canada real estate here is doing reasonably well small 5% correction which is normal and acceptable.

    no major job losses or recession predicted yet Canada has a sound economy.

    Comment by Real Estate CrashingNovember 15, 2008 at 4:03 am

    The nightmare is here…Great analysis by Mr. “Real Estate Expert”

    Comment by Dubai NightmareNovember 16, 2008 at 6:50 am

    It’s time that speculators lose something. Earning hunderds millions was not normal.
    I never believed Dubai, never, it was bluff, very well supported by propaganda. Crisis will clean it up.

    Comment by AziziNovember 19, 2008 at 8:11 pm

    I wish real estate expert had published these comments in dubai dailies… thousands of small investors

    like myself would not havebeen trapped in unrealistic promises.

    Today my property is worth 40% less than what I bought it 4 months ago.

    I blame the government for bringing so many projects into the market and killing the confidence.

    Why are they quiet. Real estate expert how can I get in touch with you for some advice… email?

    Comment by SilviaNovember 20, 2008 at 3:35 pm

    In the 1980s and 1990s, Dubai used to be such a fun place to live in. Good medical, good salaries, good savings.

    Today, expats are lucky to save even 5% of their income and stress levels have gone through the roof.

    Traffic jams 24 hours a day, near impossible to get street parking, a 45 minute wait to get a taxi.

    Indirect taxes in the form of extremely high rent and huge fees on everything related to living in Dubai.

    Before, people treated you for who you are. Now they treat you based on what you drive, where you live

    and how much you earn. Dubai is no fun to live in anymore, rather it is a materialistic society amidst an ugly

     poorly planned concrete jungle where the rule is eat or be eaten

    Comment by Ex-Dubai ExpatNovember 21, 2008 at 6:35 am

    Fortunately avoided the market here as I read the contracts and evaluated the risk given the emerging legal infrastructure.
    Very little sympathy for those that bought, as they knew that the potentially high returns came with equally high risk.

    Unfair to blame the Gov’t they have been putting the right regulatory structure in place, but this usually takes years.

    The region needs a Dubai and I have no doubts it will be a regional powerhouse.
    In the short run I expect an 80% drop in values, much like Singapores correction in the late 90’s.

    Comment by sulliNovember 21, 2008 at 6:40 am

    Been in UAE since 1994 but lost the bull market due to over protectiveness any way nothing to cry for,

    can see one more coming in the near future as I have seen these happening in the past, unlike India from

    where I come from, Dubai is not seen as a permanent residenence for most of the expatriate community

    residing here, Most of us especially Indians are phobic of the locals and have been taken undue advantage

    by the local youths and some most of the GCC expatriates and in my personal experience worst among these

    are the Palestinians who seeems to have no respect to another human being now saying that, since no expatriate sees

    UAE as his future home but a stop gap arrangement to make a

    Comment by Lost BullNovember 24, 2008 at 2:26 pm

    quick buck, which attracted the soldiers of fortune around the world, and persons with questionable past and

     present but with a huge wallet even though there were some sort of regulation put in regarding the money transfers,

    there seems to be money flowing in from every were, Now in India we have a huge population and we have absolute

    need for housing even it is rare to see such an mega project as in Dubai even with some of the worlds richest persons residing

    there, Anyway before coming over to Dubai I used to travel around the world and it surprised me in 1994 why

    Dubai did not have MRT which was very much common even in small countries such as Singapore,

    And it surprising and at the same

    Comment by Lost BullNovember 24, 2008 at 2:44 pm

    extremely frustrating that you cannot travel back in the same taxi of other emirate unless you have engaged

     it for a round trip, about just 2-3 years back an inter emirate buses started plying the roads.

    Once the real estate market started selling there were lots of people rushing in to buy assuming that they can forsee

    a stable future with permanent residence visa status if they bought a free hold property which did not materialise,

    again the only option that was left for all to make a quick buck when the boom lasted, Extremely well marketing tools

     were used to attract people from all over the world with a promise of living on beach life style, and compared the

    prices to the major cities

    Comment by Lost BullNovember 24, 2008 at 3:00 pm

    found it to be cheap minus the infrastructure to support such a rapid developement, due to all projects going on simultaneously,companies ,man power, machinery and materials started flowing in and competitiveness within the developers started pushing the price upwards, speculators started rushing in prices went beyond the reach of genuine end user, any product which becomes unaffordable to the end user shall not sustain its existence so the crash in the market was inevitable, But even in this period there are plenty of genuine buyers if the prices are affordable and without high maintenance charges for the upkeep it is upto the developers to recognise, presently there are lots of projects

    Comment by AnonymousNovember 24, 2008 at 3:15 pm

    being shelved, scaled down and going for a rebiding ( face saving tactics), speculators immediately stated off loading their stocks , few with sustaining power shall hold untill they cannot afford to pay their mortgages any more, companies have already started retrenching, rents in Dubai started droping,bank interest rates have incresed, come March ( end of academic year)2009 we will see an exodus of families saying goodbye to UAE since it is not worth for them to be live here any more, and then the real crash starts…….. Advice time : 1. Do not panic this is not a end of the world 2. If you cash start investing in the shares 3. force banks to reduce the interest rates and extend the

    Comment by Lost BullNovember 24, 2008 at 3:31 pm

    repayment period. 4.Hunt for good bargains in the real estate property market start buying hagle with the developers,5.

    This is good news as there is very sustainable future ahead for those who weathers this strom 6.

    Live life comfortably as you will not take anything when you are dead anyway 7.

    Pray for a good health during this stressful period ……… May God Bless U.A.E and its Rulers

    Comment by Lost BullNovember 24, 2008 at 3:41 pm

    Looking for real estate in Dubai? Property Portal connects you to hundreds of sales and investment opportunities

    in the world’s hottest real estate market.

    Comment by server BaigNovember 25, 2008 at 5:29 am

    money-grubbing pigs deserve to wallow in their own filth

    Comment by rich man poor manDecember 1, 2008 at 6:54 am

    well dune dubai dream..!!

    Comment by ignorentDecember 6, 2008 at 4:08 pm

    to all Dubai haters i say “moral indignation is jealousy with a halo”……

    Comment by Wells.H.GDecember 11, 2008 at 1:36 am

    i believe that rich man poor man’s comment is logically directed towards the party that created this

    worldwide financial crisis, which naturally is not Dubai…..see what i mean !?

    Comment by Wells.H.GDecember 16, 2008 at 3:01 am


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