Four companies have filed lawsuits against The World, a subsidiary of Nakheel, claiming breach of contract. The World, located 4km off Dubai's coast, is made up of reclaimed islands resembling a map of the globe. It was one of the most expensive and ambitious projects from Nakheel during the property boom but it has since stalled because of a decline in prices and transactions during the global downturn.
Three of the claims are from developers related to the same Sharjah-based holding company, Gulf Global Group. The companies, Global Realty Partners, Gulf Developers and Frontline Developers, filed claims worth a combined total of US$15.3 million (Dh56.19m). All three list the same phone number and address in the Sharjah Airport Freezone. A fourth suit was filed by Gulf Heights Holding Investments but no damages claims are mentioned in documents currently available to the public. The claimants declined to comment yesterday.
Nakheel declined to comment on the lawsuits but a spokeswoman said construction had begun on the projects for Josef Kleindienst, who owns Sweden, Austria, Monte Carlo and Germany, as well as on projects by other developers on Lebanon, Spain and France. Deepak Arora, the managing director of City Diamond Contracting in Dubai, which is working on the Kleindienst projects, said his team had already set up on site at The World and construction would begin within a few weeks.
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