Nakheel cases to be heard by Dubai Courts
Dubai government decides to move financial disputes to courts due to their previous experience
The legal affairs department of the Dubai government clarified on Thursday that the Dubai Courts will hear cases involving Nakheel and its subsidiaries, rather than the specially formed tribunal that was set up to handle disputes relating to Dubai World.
Following the separation of the developer from Dubai World in August 2011, the legal affairs department advised that this would be the best course of action, given the expertise the courts had in dealing with such cases, a Gulf News report said.
“The Legal Affairs Department advised that the Dubai World Special Tribunal, which was established by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and the 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 statement from the department 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.”
The Legal Affairs department added that it was responsible for issuing legal interpretations with respect to local legislation applicable to Dubai. This legal interpretation was necessary, it said, in light of the numerous enquires it had received, requesting clarification to the appropriate forum in which to file cases.
