Nakheel’s chairman, Ali Rashid Lootah, says the Dubai property developer and its peers have benefited from the emirate’s criminalisation of debt, with the threat of jail boosting financial recovery for property companies and banks.
Mr Lootah, who has overseen the troubled developer since 2010, says the ability to open criminal cases against those who bounce cheques is a necessary deterrent.
Since Dubai’s property market imploded in 2009, Nakheel has written off up to Dh78.6bn ($21.4bn) from the value of its real estate assets, a 2011 bond prospectus showed. The developer was believed to have had tens of billions of dirhams in receivables from buyers, many of whom were speculators keen to make a quick buck, but whose purchases quickly halved in value.
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