Emaar activities in Saudi Arabia suspended
The Saudi government has frozen the operations of the Dubai-based Emaar Properties until a lawsuit filed against it by its joint venture - Saudi Emaar - is settled. According to Gulf News, Emaar has confirmed the dispute in a statement to the press.
In the statement Emaar said, "That a dispute has arisen with a Saudi-based company which involves a conditional agreement entered into by Emaar to conduct business in the Kingdom."
Emaar has been accused of violating a contract signed earlier with its partners to set up Saudi Emaar and failing to commence profitable projects, reports have indicated. In 2004, Emaar launched Emaar Middle East, a new joint venture with Al Oula, to construct 12 residential projects in various parts of the Saudi Kingdom.
Abdul Aziz Al Qaseer, solicitor of the plaintiff, accused the UAE property giant of entering into another joint venture agreement with the rivals of its partners in Saudi Emaar. Emaar Middle East also plans a residential project in Bahrain in partnership with a local company.
- Moody's comments: Emaar ratings unchanged following decision to abandon share-for-land deal
- Saudi Arabia suspends Deloitte's auditing work due to 'mystery' cases
- Saudi Arabia: Emaar dispute goes to arbitration
- Saudi real estate developers expect pick up in investment activity
- Saudi closes embassy in Yemen