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Emaar Wins Saudi Case Over $1.2bn Compensation
dubai - Emaar Properties said on Monday that it won a court case filed against it by Saudi Arabia's Jadawel International for a $1.2 billion compensation claim after a protracted legal battle.
- PUBLISHED: Tue 23 Sept 2008, 10:47 PM UPDATED: Sun 5 Apr 2015, 2:39 PM
The Dubai-based property developer said the arbitrators in Saudi Arabia had ruled in favour of Emaar Properties PJSC on a case filed against the company by Jadawel International, which is owned by Mohammed Bin Issa Al Jaber.
“All claims by Jadawel International were rejected by the arbitrators, who declared the conditional agreement dated December 28, 2003, between the two parties to be ineffective, unenforceable and with no legal effect on Emaar Properties PJSC,” the statement emailed to the paper said.
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The award reserved Emaar's rights to claim compensation against material and moral damages and to also claim lawyers' fees and other costs related to management of the case. It also concluded that Jadawel should alone bear the entire amount of arbitrators' fees.
The case was disclosed earlier to the Securities and Commodities Authority, Dubai Financial Market and was the subject of press coverage.
“The award was pronounced in the presence of the parties' representative in Mecca and each party has the right to challenge it before the Board of Grievances within 15 days from the date of official notification of the full copy of the award, which will be made on 11/10/1429 Hijri. It is unlikely that the Arbitrators' award will be reversed or amended,” Emaar said.
Emaar's Saudi subsidiary, Emaar Economic City, and Jadawel sued Emaar in 2004 over allegedly failing to execute agreed projects and violating the terms of their partnership. Contesting the case, Emaar maintained that it did not breach any agreement or law in relation to this deal, which was aborted as a result of the conditions not being met. The dispute was referred to arbitration in 2005 following a ruling by the Board of Grievances in Saudi Arabia that it has no jurisdiction to look into the issue.
Emaar Economic City was set up to oversee development of King Abdullah Economic City (KAEC), one of four economic cities Saudi Arabia is building in the kingdom. KAEC is situated on 168 million square metres of land on the Red Sea coast. The mega-project features six zones - the Sea Port, Industrial Zone, Central Business District, Educational Zone, Resort District and Residential Communities.
issacjohn@khaleejtimes.com
