Dubai courts to hear Nakheel cases

Dubai: The Legal Affairs Department of Dubai Government said Dubai Courts will hear cases involving Nakheel PJSC and its subsidiaries, following Nakheel's separation from Dubai World, which took place on 23 August 2011.

"The Legal Affairs Department advised that the Dubai World Special Tribunal, which was established by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, pursuant to Decree No. 57 of 2009 (as amended), to decide the disputes relating to the financial position of Dubai World and its subsidiaries, had previously been the appropriate forum to hear such cases," a Dubai Government statement said.

"However, by virtue of the restructuring of Dubai World, which led to the separation of Nakheel and its subsidiaries, any cases involving Nakheel or any of its subsidiaries as a party will now come under the jurisdiction of the Dubai Courts or the alternative competent dispute resolution forum."

Pursuant to its establishing law, No. 32 of 2008, the Legal Affairs Department is responsible for issuing legal interpretations with respect to local legislation applicable to Dubai.

This legal interpretation was necessary in light of the numerous enquiries it had received requesting clarification on the appropriate forum in which to file cases involving Nakheel and its subsidiaries," the statement said.

Dubai Government had created a special tribunal in December 2009, to hear cases against Dubai World as it entered into a lengthy restructuring process involving the rescheduling more than $26 billion debts collectively owed by its subsidiaries including Nakeel. Last year, the Government of Dubai separated Nakheel from Dubai World and brought it under its own management.