The MoU between Abu Dhabi Group and Malik Riaz Hussein has been scrapped.
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Abu Dhabi Group has cancelled a tentative agreement with the Pakistani businessman, Malik Riaz Hussain, to build residential properties on an island at a cost of $45bn, it has been announced.
According to a Reuters report, the cancellation of the deal comes less than two weeks after it was signed.
“It is unfortunate that discussions between the parties could not reach any conclusion and the Memorandum of Understanding has been cancelled,” the firm said in a statement.
The real estate project included plans to build the world’s tallest building on an island off the coast of Karachi. It would have been Pakistan’s largest ever foreign investment deal.
The $45bn would have been invested in different construction projects across the country. Local media reports said that $35bn would be invested in the Sindh province, while $10bn would be invested in Islamabad and Lahore.
The Reuters report added that no financial obligation or commitment had been assumed by the Abu Dhabi Group or its chairman, HH Sheikh Nahyan bin Mubarak al Nahyan. The Sheikh also owns a construction firm, Dhabi Construction, which was also linked to the deal.
Abu Dhabi Group invests in emerging markets and has large investments in Pakistan, including Bank Alfalah, Warid Telecom, Al Razi Healthcare and Wateen Telecom.