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Dubai could prosecute Deyaar former CEO

Real estate company chairman says prosecution is finalising its investigation

  • Bloomberg
  • Published: 22:52 May 18, 2008
  • Gulf News

Dubai: The Dubai Public Prosecution, which is probing Deyaar Development's former chief executive officer for fraud, is likely to take the case to court, Deyaar's chairman Nasser Bin Hassan Al Shaikh said.

"I think they are finalising their investigation now," Al Shaikh said in an interview in Sharm Al Shaikh, Egypt. "From the looks of it, it will go to court, we have enough evidence to take it to court," he added.

Deyaar's former chief executive officer Zack Shahin and two other officials at the real-estate developer, Dubai's third-biggest by market value, are being detained and questioned in connection with an alleged embezzlement.

The probe may result in more arrests, Dubai Attorney General Essam Al Humaidan said in an interview on May 11. The Dubai-based developer, 41 per cent owned by Dubai Islamic Bank, has benefited from surging demand for housing in the UAE since 2002 when foreigners were allowed to buy property in some parts.

Realty boom

Property values quadrupled over the last five years in Dubai, Al Mal Capital said in a real- estate report on March 9.

The probe will "result in stronger governance going forward" and will be a "very good lesson for all public companies in the UAE," Al Shaikh said.

Deyaar was "transparent to an extent that was allowable by law."

Deyaar will start at least two projects in Saudi Arabia this year and is in the early stages of evaluating Egypt, Jordan and Syria for opportunities, Al Shaikh said.

Deyaar closed 0.4 per cent lower at Dh2.28 on the Dubai Financial Market on Sunday, valuing the company at Dh13.2 billion ($3.6 billion).

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