Dubai Group raises heat on Shuaa Cap

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A Dubai investment vehicle yesterday said it would start legal action to reclaim Dh1.5bn ($408m) from Shuaa Capital as part of a disputed convertible bond.

Dubai Group, a member of the Dubai Holding conglomerate owned by Sheikh Mohammed bin Rashid Al Maktoum, the ruler, said it had appointed lawyers and would soon file a civil case at the Dubai courts.

The move towards legal action ratchets up pressure on Shuaa Capital, which sold Dh1.5bn in convertible bonds to Dubai Banking Group at the height of the boom in October 2007.