Sep 12 2008
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Sama Dubai stays clear of Lagoons property dispute
Declining to comment on the issue, Farhan Farid-ooni, executive chairman of Sama Dubai , told Gulf News in a statement: "Commenting on an investor's relationship with us breaches our contractual agreement with them."
Many Dubai-based analysts have been trying to predict the future of house prices in Dubai over the next couple of years, with the majority saying there will be a notable correction.
However, last week, Sama Dubai returned payment cheques after holding them for three months. It is not clear why the cheques were held for so long.
The report quoted an executive at UNB as saying the market for large plots in the development have now stalled as nervous investors keep a more watchful eye on their cash.
"I haven't heard of a sale there for three months since our issue cropped up," the executive said. "Maybe it has something to do with the arrests there."
The Kuwaiti firm, listed on the Kuwait stock exchange, has told Sama that they intend to press ahead with arbitration at the Dubai International Arbit-ration Centre within Dubai's chamber of commerce , according to the Financial Times.
UNB is also considering legal action, it said.
This is just the latest in a long series of cracks appearing in Dubai's fragile property sector, unsettling all those with interest in the market.
Police have questioned several officials of big companies like Nakheel, Dey-aar and Tamweel.
By Suzanne Fenton
© Gulf News 2008
© Copyright Zawya. All Rights Reserved.
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