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Back to Local News listDubai Properties arrest hits Emaar
Emaar Properties shares fell to their lowest point in nearly a month as the chairman of Dubai Prop-erties, which the developer is due to merge with, was arrested at the weekend.
The shares closed 7.74 per cent at dhs4.05, its lowest level since October 4.
Hashim Al Dabal, chairman of Dubai Properties was arrested on suspicion of embezzlement, Dubai’s att-orney general Essam Essa Al Humaidan told the Bloom-berg news wire.
“Mr Al Dabal is accused of abusing his position and ear-ning millions in illegal profit,” Al Humaidan told the news wire.
Emaar Properties, which is currently putting the finishing touches to the Burj Dubai, the world’s tallest skyscraper, said last week that talks are progressing on a merger with Dubai Properties and state-controlled Sama Dubai and Tatweer.
Investors believe “they are merging Emaar with good assets,” said Rabih Sultani, a fund manager at Duet Mena in Dubai. “Now we’re seeing issues of fraud and negligence from management. It might pro-mpt people to rethink the merger,” he added.
Last year, Dubai authorities began an investigation into corruption in property companies and some of the most high profile names arrested include Deyaar Develop-ment’s former CEO, Zack Shahin, and Adel Al Shirawi, the former chief of mortgage lender Tamweel.
Yesterday it was reported that Ahmad bin Byat, CEO of Dubai Holding, had been appointed acting chairman of Dubai Properties.
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COMMENTS
Geeee..... are we really surprised??? Greed, greed, greed.....
Posted by: jamay [02.Nov.09 7 : 21 PM]KEEP YOURSELF UPDATED
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