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Friday, November 6, 2009

Dubai - More than a half million bounced cheques between January and May 2009


Bounced cheques are regarded legally as fraud, a criminal offence punishable by jail in Dubai and the UAE.

With more than a half-million cheques bounced between January and May of this year alone, the cases have been putting an increasing strain on the legal system.



But now the hard walls of debtors’ prison are beginning to crack.

No longer will home buyers in Dubai who cancel postdated cheques because of a developer’s missed deadlines or broken promises automatically face jail.

Instead of being investigated by police or prosecuted, delinquent tenants and homeowners will be referred to a new judicial committee that will make a binding judgment on whether they should be held to payment. It will also deal with developers who run into financial difficulties and cannot pay their investors.
read the full aricle in The National original source

Dubai Prosecutors will hunt former senior executive of Istithmar World

Dubai, 05 November 2009
An Interpol Red Notice could be issued for the arrest and possible extradition of Chris Turner, who was sentenced in absentia to five years in jail for embezzling AED4.9 million ($1.3m), UAE daily The National reported on Thursday.

The former risk assessment manager for the investment arm of Dubai World was also ordered by Dubai Criminal Court to pay $2.7m in fines and restitution.

Turner, speaking to newswire Zawya Dow Jones from a location outside the UAE, said: "I'm innocent of the charges and I'm not in the country. I'm reviewing my legal options."

"This is a matter for the appropriate authorities," said a spokesman at Istithmar World in an emailed statement to the newswire.

But prosecutors in the UAE said they would hunt for him.

source Arabian Business here read the full article



Wednesday, November 4, 2009

Fraud in Dubai and the Gulf Region - Just the tip of the iceberg

source The National

It is more than a year since Dubai launched a highly publicised clampdown on corruption, which led to the arrest of several executives from some of the emirate’s top property developers and financial institutions.

But while Dubai grabbed the international headlines, it represented just the tip of the iceberg in a region that has been identified as a hot spot of corruption.

Kroll, an international risk consultancy, said last week the Middle East was the world’s only region to see a rise in fraud in the past year. It singled out corruption and bribery as the single largest threats.
“For seven out of 10 cases of fraud, it had the highest incidence of any region, including bribery and corruption,” Kroll said. Average financial losses from corruption doubled to US$11.5 million (Dh42.2m) this year from $5.6m last year, it said.

read more of this article....



Tuesday, November 3, 2009

Shareholders' equity of the top 150 Arab banks is just 170 billion dollars - Gulf Banks cannot finance huge projects alone

source Zawya

Nov 02, 2009 (AFP) - Gulf and Arab banks are unable to finance huge projects in the oil-rich Gulf region and fill a credit gap created by the withdrawal of foreign banks amid the global financial crisis, bankers said on Monday.

"The total shareholders' equity of the top 150 Arab banks is just 170 billion dollars," Shaikha al-Bahar, deputy chief executive of National Bank of Kuwait, told the Kuwait Financial Forum.

"These banks are not capable of financing huge projects. We have limitations," said Bahar, adding that the cost of projects in Gulf states over the next several years is estimated at more than 2.1 trillion dollars.

The global financial crisis has resulted in a major credit squeeze, forcing many countries in the region to cancel or postpone hundreds of projects for a lack of finance that was mainly provided by international banks.

The cost of lending also became expensive, thus raising the cost of projects.

Jean-Christophe Durand, BNP Paribas managing director in the Gulf, said good projects will still be able to attract capital at the right price.

"(But) we still need international banks," for financing of major projects in the Gulf, he said.

Abdulaziz al-Ghurair, chief executive of Mashreq Bank in the United Arab Emirates, said Gulf banks can fill part of the credit gap with some help.

"Gulf banks can fill the (credit) gap created by foreign banks... provided risk is distributed at all Gulf states and with help from other sources," he said.

Speakers said cash-abundant Gulf governments are required to play a key role in financing mega projects, while others said local investment companies should also contribute.

Banks in the Gulf have been strongly affected by the credit crunch and many were exposed to bad debt, resulting mainly from a slide in the value of assets and problems at investment firms and family companies.

All central banks in the region have asked banks to allocate provisions against bad loans, a process that impacted profits of Gulf lenders.

Former Kuwaiti finance minister Mahmud al-Nuri said he believes Gulf banks will not be able to face the post-crisis conditions without key mergers.

"I believe that over the next five years, there should be three to four regional bank mergers. This is very necessary," he said.

Ghurair said there has been no strategic plan for bank mergers in Arab countries and the few mergers that took place were among distressed banks. "I hope there will be some strategic mergers in the next decade."

Dubai Good News - Dubai property dispute victims to get free legal advice - Let`s Hope that this is not again only a promise

source Arabian Business

Dubai Land Department on Monday announced a new initiative to introduce a free legal service to support home owners involved in real estate-related court cases.

The announcement follows a meeting between senior Land Department officials and representatives of law firms to finalise details of the move.

The Land Department said an agreement had been signed which would see the law firms become part of a new Legal Care Group.

The group will bring together senior lawyers, professional firms and consultants to offer free legal assistance to members of the public with "genuine real estate issues" who might otherwise be dissuaded from taking action because of the prohibitive cost of fees, the Land Department said in a statement.

Mohammed Sultan Thani, assistant director general of the Dubai Land Department, said: "The objective of this initiative is not merely to meet a need but to ensure fairness and justice is available to anyone who might have a concern which involves property, no matter their circumstances.

"This reflects the government's commitment to ensuring there is in place a comprehensive equitable system of legalizing ownership and property transactions."

He added: "Now, no one is prevented from pursuing their rights merely because of the possibility they might be priced out of the legal system."

Richard Green, head of research at CB Richard Ellis Middle East, said: "The offer of free legal advice is another step in the right direction. Overall confidence in the legal dispute system has been somewhat low due to a time lag in addressing the current case backlog.

"This announcement will go some way to renewing faith in the system as well as providing confidence to individual investors facing financial difficulties in their disputes against developers.

"Overall this is seen as another positive advancement for the Dubai market."

In August it was reported that property dispute cases that were originally submitted to the Real Estate Regulatory Agency (Rera) and Dubai Courts are now being dealt with by Dubai’s new Property Court.

The new court, which started operations in October, was set up under the First Instance Court to deal exclusively with property-related cases.







Sunday, November 1, 2009

German Sebastian Vettel wins Abu Dhabi Formular1 Grand Prix - Congratulations to our German Hero





Congratulations 
  
Sebastian

we are proud of you







more Stories about the Formular 1 GrandPrix Abu Dhabi 2009 read The National


Saturday, October 31, 2009

Dubai Properties Chairman arrested on suspection of embezzlement

source Bloomberg October 30 2009


Oct. 30 (Bloomberg) -- Hashim Al Dabal, chairman of Dubai Properties LLC has been arrested on suspicion of embezzlement at the state-owned company that’s in merger talks with Emaar Properties PJSC, the emirate’s attorney general said.

“Mr. Al Dabal is accused of abusing his position and earning millions in illegal profit,” Attorney General Essam Essa al-Humaidan said in a phone interview today. “We are questioning him almost daily and Mr. Al Dabal indicated he is ready to answer questions without having a lawyer present.”

more....



Thursday, October 29, 2009

Emirates Press Law and the Media Blackout

source arbabMediasociety October 2009

On May 29, the London-based daily The Independent published an article entitled Dubai property scandal claim emerges amid media blackout. According to the report, a group of investors who had bought properties in buildings by Al Fajer Group, a company run by Sheikh Maktoum bin Hasher Al Maktoum, held a press conference to accuse the developer of fraud, according to The Independent.

The investors allege that the developer Al Fajer Properties showed them photographs of buildings it claimed were Ebony 1, Ivory 1 and Ivory 2, but were in fact buildings belonging to another developer.
 
The investors were demanding a refund totaling GBP86 million.

Unfortunately, the investors didn’t get the sort of press they had hoped for.
Incidentally, Sheikh Maktoum bin Hasher Al Maktoum is the brother-in-law to the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, and soon after the press conference finished, Dubai government officials warned news agencies against publishing articles on the press conference.

“I had written half of the article when I was told by my editor to stop,” a Dubai-based reporter told The Independent. “The investor’s group has records of payment, and it’s obvious that they have been shafted, but we can’t write about it.”

Why?

Because a member of the royal family is directly involved.

To date, we have not received updates from Al Fajer Group regarding the allegations made against the company.
 
Rather than view Sheikh Maktoum bin Hasher Al Maktoum as a businessman who may have been involved in conning investors out of GBP86 million, the government views him as a royal first, a businessman second.
 
And herein lies one of the media law’s biggest problems: most UAE royals hold government offices and executive positions in companies throughout the Emirates. In fact, most UAE-based companies have some connection, either directly or remotely, to members of the royal family.
 
 How, then, can the media ever hold these individuals accountable for their actions, if stories (albeit negative ones) cannot be published if they involve a royal?
 
Sadly, the draft media law won’t help with this conundrum, and it certainly won’t help with future torture tape cases either. Article 32, which makes criticizing government officials and royals illegal, is artfully ambiguous. According to HWR’s report, “[such] a vague law invites self-serving interpretation by the government, and with courts that have proven compliant in harshly regulating speech, the result will be continued anxiety, self- censorship, and arbitrary enforcement of the law in the UAE. It appears designed to insulate the government from public accountability and criticism and would deter investigative journalism and undermine the media's role as public watchdog.”
 
According to Samer Muscati, the HWR is putting together a new report, because “the situation is more dire than we anticipated.”
 
It is dire, especially given that in spite of local restrictions on content, the world press can write and say what they want about the UAE, without ever succumbing to the country’s media laws. And the stories the government doesn’t want the local media to publicize, are being publicized anyway by journalists around the world.
 
Due to the Internet, the only way to prevent the press from airing your dirty laundry in public is by not having any dirty laundry in the first place.
 
Interestingly, the draft law is still pending approval. One has to wonder why a country that passes laws so quickly compared to other nations has taken its time with this one.
 
“I’m hoping that the reason why they haven’t signed the law is because they’re going to amend it,” said Muscati. “They need to reevaluate the law and take the recommendations that we’ve given them.”
 It is unclear why the draft law hasn’t been passed. Repeated efforts to contact the NMC for an explanation yielded little more than assurances that the government is working on finalizing the law.
 However, transparency was never one of the UAE’s strong points, which is ironic given its desire to maintain its status as a regional business hub. Without transparency, and without press freedom to report on political, business-related and social issues, the UAE is unlikely to repair its mired reputation.
 
Since the financial crisis hit the region in September 2008, bringing the nation’s billion dollar real estate industry to its wobbly knees, the UAE’s credibility as a stable and profitable developing nation was compromised. Dubai, more so than Abu Dhabi, had over stretched its budget. To date, no one knows how much debt the emirate raked up, but occasional disclosures hint at a distressed economy. Earlier this year, Dubai admitted to owing $80 billion, although analysts suspect the number is higher. Clearly, without the government providing accurate numbers, speculators will assume the worst.
 
Given Dubai’s drive to raise itself from the economic bog it created running up to the financial crisis, honesty and transparency are tantamount. And without the media’s involvement in reporting information about Dubai and the UAE’s news, any effort to regain investor confidence is slim.
 
In fact, keeping close tabs on the media, like it does with its companies, will only prove that in spite of the lessons the financial crisis has taught the business world, the UAE hasn’t grasped them yet.

read the full article here


Dubai`s off-plan buyers cash at high risk - Delayed Projects axed

source  MaktoobBusiness

DUBAI - Many real estate projects claimed to be on hold due to the collapse of the UAE’s property market have actually been cancelled, but developers do not want to admit this because then they will have to return investors’ money, industry observers say.

Observers also question some developers’ ability to repay investors when projects are finally cancelled, with the prospect of buyers losing millions of dollars.

“In the 18 months before the downturn a number of projects were announced that were not financially viable and therefore unlikely to see completion,” said Tahir Akhtar, chairman of Dubai Business Advisors, who has invested in projects across the UAE.

“Developers do not want to admit this because then they will have to return the funds.”

Billions of dollars worth of developments were launched during the UAE’s real estate boom, which had seen property prices close to double by mid-2008 from the start of 2007.

The boom was driven by speculation and easy credit, with developers funding the construction of projects through off-plan sales.

When the global financial crisis gripped the country’s real estate market prices plummeted as financing and demand dried up, leaving developers unable to fund construction.

UNDER REVIEW

Many developers have put projects on hold or have said they are reviewing projects, but few have come out and outright cancelled projects.

“If they (developers) say it’s cancelled they will have to repay the money to clients. Probably for that reason they are saying it is still on hold,” said Charles Neil, CEO of property consulting firm Landmark Advisory.

Michael Shvo, a well-known luxury real estate marketer from New York, said a developer told him privately a project that is “officially” delayed is actually cancelled, declining to name the developer.
 
“A developer told me that officially the project is on hold, but it is actually cancelled,” Shvo told a conference at Cityscape Dubai earlier this month, prompting him to call for greater transparency.

The number of real estate projects cancelled or on hold stood at around $408 billion in September, up 18 percent from $346 billion in April, according to the Kuwait Financial Centre.

The Centre, also known as Markaz, said it expects cancellations to rise further in Dubai due to the continued lack of financing and uncertain economic outlook.

UAE real estate regulations vary from emirate to emirate, but currently there are no laws governing how long a project can be on hold before a developer must refund investors’ money.

In Dubai, the UAE’s most developed real estate market, authorities are in the process assessing which projects are unviable and should be cancelled, with the findings due out before the end of the year, according to the Real Estate Regulatory Agency (RERA)

Developers are not allowed to cancel projects in Dubai without the approval of RERA and the Dubai Land Department, RERA said, adding that if a developer does get approval to cancel a project it would have to reimburse investors. 

“It will vary from project to project as which ones will go ahead. Some will end up with half-completed buildings and some may not start (at all),” Landmark’s Neil said.

INVESTOR CONCERN

Investors have become increasingly vocal in voicing their concerns about delayed projects, calling on developers to transfer their investment to another project or refund their money.

Larger companies such as Emaar Properties and Nakheel have set up schemes that allow buyers to swap their investments between projects, but smaller developers lack the project portfolio to offer an alternative, analysts say, leaving investors at risk of losing their money.

Dubai Business Advisors’ Akhtar said a group of investors he belonged to stood to lose around 150 million dirhams ($40.8 million) from projects in the UAE emirate of Ajman that now look like they may not go ahead.

“Not a lot has been done to protect investors," he said.

Dubai brought an escrow account law into force in mid-2007 in an effort to better protect investors - requiring developers to hold buyers’ money in a special bank account until the completion of a project - but many projects had been launched prior to the law, and other emirates were even later in introducing similar regulations.

“Most projects that fall under the escrow provisions of RERA have an established level of comfort and protection. Those projects that are not covered by escrow are a different situation,” said Blair Hagkull, regional managing director of Jones Lang LaSalle.


Tuesday, October 27, 2009

10 year old Emirati Boy 100 % owner of ACI Real Estate LLC Dubai ?

original source ExtremNews


Jungunternehmer Robin Lohmann (34) aus Gütersloh (Nordrhein-Westfalen) wurde im eigenen Hause von einem zehnjährigen Jungen als jüngster Chef getoppt.

Mohammad Ahmad Thani Obdaid Thani Al-Muhairi
ist erst zehn Jahre alt und schon Boss zweier ACI-Firmen in Dubai: der ACI Real Estate LLC und des ACI Investment Project LLC. Robin Lohman ist dort sein Manager.

Das fand GoMoPa-Korrespondent Martin Kraeter (www.gomopa.net) zusammen mit Rechtsanwalt Hartmut Göddecke bei Recherchen im Departement of Economic Development (DED) in Dubai heraus, wo die genauen Firmenstrukturen des deutschen Fondsanbieters Alternative Capital Investment (ACI) aus Gütersloh eingetragen sind.

Damit sitzt also ein Zehnjähriger auf 300 Millionen Fondsgeldern, die deutsche, österreichische und schweizerische Anleger der ACI zum Bau von Türmen anvertrauten - die sogar von Boris Becker, Michael Schumacher und Niki Lauda beworben wurden. Die Projekte sind pleite, das Geld der Anleger wohl verschwunden.

Die ACI Real Estate LLC und die ACI Investment Project LLC gehören zu 100 Prozent dem zehnjährigen Moammad und seinem Vater, Ahmad Thani Obaid Thani Al-Muhairi (41).

Aber auch die beiden anderen ACI-Firmen in Dubai, die ACI General Trading Co LLC und ACI Consultancy, sind fest in der Hand eines einheimischen Besitzers: des Emiratis Ahmad Nasrulla Ismail Al-Ahmadi (57).

Al-Ahmadi besitzt aber nicht nur zwei ACI-Firmen als Mehrheitsgesellschafter beziehungsweise nationaler Agent, ihm gehört auch die YAMA International Commercial Broker LLC. Das ist die Firma, die alle ACI-Investmentobjekte im Dezember 2008 für 50 Millionen Euro offiziell gekauft hatte und dann nicht zahlen konnte. Weshalb die Anleger seit März 2009 in Deutschland vergeblich auf die versprochene Auszahlung von 50 Millionen Euro warten.

Die Lizenz der Yama war beim Verkauf schon ein Jahr abgelaufen

Die YAMA International Commercial Broker LLC wurde am 16. Oktober 1999 zum Handel mit Geschenken, Spielzeug, Kohle und Feuerholz gegründet. Die Firmenlizenz war aber bereits am 15. Oktober 2008 abgelaufen und wurde nicht verlängert. Der Verkauf fand also an eine Firma statt, die es zumindest von der VAE-Gewerbeerlaubnis her gar nicht mehr gab.

Und der Besitzer dieser Scheinfirma YAMA ist zugleich Mehrheits-Besitzer und nationaler Agent der beiden ACI-Firmen ACI General Trading Co LLC und ACI Consultancy. Die YAMA und die ACI Consultancy hatten sogar dieselbe Postfachnummer.
more....

Saturday, October 24, 2009

Test Case for RERA Dubai - Investors file case with RERA over Dubai project delays

source Arabian Business
A group of around 30 investors has filed an official complaint at the Real Estate Regulatory Agency (Rera) over ongoing delays and specification changes at the Vue de Lac and Vista del Lago developments in Dubai.

Investors on the Al Attar project at Jumeirah Lake Towers accused the developer of unreasonable delays and changes being made to apartments without the consent of owners, Construction Week Online reported.

“We have been promised the project since then end of 2007. It was then pushed to 2008, then the end of 2008, and now he’s saying 2011 – which will never happen, because up to date they’ve only finished the piling,” investor Makram Mohamed told the website.

Many asserted that apartment specifications have changed so drastically that they no longer wish to purchase property in the project and want a full refund.

Investors are unhappy at what was described in a letter from Al Attar as “some small changes”, where two-bedroom apartments have been changed to one-bedroom ones.

Al Attar had revised the prices of the apartments in line with the reduction in apartment size, but investors said that they had bought two-bedroom apartments specifically and a smaller alternative was not acceptable.

“Because of the change of designation and all of this delay, we don’t want this property any more. The majority of people investing were buying to live in this property. Ninety per cent of our group wanted to live in this. Now they’ve changed the designation, we don’t need it. I bought a two-bedroom; you can’t give me a one-bed plus study,” said investor Shailendra Sainani.

“The majority of us need our money refunded and the costs absorbed. [Al Attar] needs to resell the project from the beginning.”

In addition to changes in designation, many investors are also concerned that delays to the project will result in a huge interest bill arising from finance agreements that can only be concluded following apartment handover.

Some investors took out finance agreements in 2006 under the impression that the project would be handed over in 2008. They are now facing the prospect of paying five years’ worth of interest on finance agreements, should the project be delivered according to a new completion date of 2011.

Some investors also query Al Attar’s ability to deliver the project on time.

“Can we still believe Al Attar can deliver in 2011, if they couldn’t even start construction in the last three years?” said one investor.

The group has filed a case with Rera because they say that Al Attar Properties is refusing to communicate with them except through a lawyer.

No-one from Al Attar was able to comment on the case or development.

The case has now been filed with Rera, who said a decision on the steps it would take would be forthcoming in the next few days.


UAE collect DNA from all Residents - DNA database set to start in a year

source The National
The UAE aims to start collecting genetic samples from residents within 12 months as part of its controversial DNA database project, the programme’s director said yesterday, making it the first country in the world to do so.Dr Ahmed al Marzooqi, the director of the National DNA Database, also said the order for millions of people to allow lab technicians to collect samples of their DNA by swabbing their cheeks would probably be given as a security directive and not require the passage of new legislation.

“The first step is to set up the infrastructure and hire the lab technicians,” he said in an interview with The National.

“This should take us approximately one year.”

Then, he said, the UAE would start collecting DNA samples from the general public, beginning with juveniles.
“The aim is to eventually have a profile of the entire population,” said Dr Marzooqi, who is also the chairman of the DNA Working Group, made up of various police forces across the Emirates.
“Our goal is to sample one million per year, which could take as long as 10 years if you factor in the population growth.”Some officials have suggested that the DNA programme may require new legislation, which would then need to be considered by the Federal National Council.
But Dr al Marzooqi said this might not be the case.
“We are not sure if this will go through the Federal National Council or not,” he said. “It could simply be decided as a security matter and not need the legislation of the FNC.”
The legislative route seems increasingly remote given that a new government department, the National DNA Database, has already been formed within the Ministry of Interior and collection kits ordered to help the police gather genetic material.

At present, only 5,000 DNA profiles are stored, all of convicted felons.

The notion of collecting DNA samples from non-criminals has raised ethical concerns about privacy protection.
In Britain, for example, such use of DNA was contested last year in the European Court of Human Rights, which ruled that Britain must purge non-criminal genetic material from its database.
The UAE has not accepted the jurisdiction of any such body.

Even attempting such a database – in which DNA is gathered from the entire population, even those who have never gone through the legal system – is basically unheard of, said Sir Alec Jeffreys, the British genetics pioneer who invented the DNA profiling system.

He expressed concern over the lack of legislation required for a national database.
“It will be interesting to see how this develops,” he said.

“How this works out will really set the scene for how other countries approach this problem. If it’s seen as a great success which the population and citizenry fully endorse, I think it will open the way for a lot of other countries going down this route.

“If it turns into a disaster for whatever reason, that will be the end of the story. You are the interesting experiment at this point.”
Dr al Marzooqi, who is also Interpol’s single Middle Eastern representative in its DNA Monitoring Expert Group, said he was aware of the project’s challenges.

“We are certain the pros will outweigh the cons,” he said. “The issue of privacy is just as important for us as it is important for the public. We will implement strict usage rules and will take secondary tests in court cases to verify the identity matches.”

Other nations could use information from the UAE’s data bank, but not access the material, he said. Treaties and other international agreements would dictate the specifics.

“If there is co-operation with the country seeking the DNA profile, we share this information through Interpol – only the DNA profile, and obviously not the sample,” he said.

Because each country may have its own database of DNA profiles, Dr al Marzooqi said, databases would not be merged with those of any other country.
“Not every country who asks will be given this information,” he said.
The database, he added, would be “instrumental in helping with unsolved crimes, identifying unknown bodies and will also be a great help in major disasters, either man-made or natural”.



Friday, October 23, 2009

How safe are your Mobile calls ?

A company called Secusmart has developed an advanced encryption and authentication system to provide secure cellphone communication.

According to André Stürmer, operations director of the TriVest Group, South African distributors of the German developed Secusmart chip: “The hard fact about cellphone security is that you should always assume you have unwanted listeners. In countries where more and more business is conducted over the mobile phone network, such as is the case in Africa, this is particularly relevant."

GSM-based communications can be attacked in three different ways:

1. An attack on the transmission network.

2. An attack on the air interface.

3. An attack by ID spoofing.

During an attack on the transmission network, the speech data is transferred clearly, and can be intercepted through legal as well as illegal measures. Air interfaces can be actively and passively attacked. An active attack on the air interface is performed by an IMSI catcher. The IMSI catcher makes use of the lack of authentication between the network and the mobile phone and intercepts the data by placing the phone on its ‘private’ network. Additionally, the IMSI catcher disconnects the normal GSM encryption. Not only does the cost of around R2 million limit its use, but it is also difficult to deploy and the active interception means that the use of the IMSI catcher can be traced.

A passive attack of the air interface requires cracking the A5/1 encryption. The two possibilities are:

1. GSS ProA - GSM interceptor

* On-the-fly decryption of up to 100 speech connections.

* Simultaneous interception and content analysis.

* Cost is approximately R750 000.


2. Open-source projects

GSM cracking project/A5 busters

The threat by this type of attack is high, as the interception cannot be traced and the entry barrier is low.

The cheapest alternative is to duplicate the caller ID – this is known as ID spoofing. Sites such as www.spoofcard.com show how easy and cheap this type of attack can be. The invader communicates the false call number and the victim trusts the number, resulting in them divulging confidential information. This threat by caller ID spoofing is extremely high because it is possible with any telephone.

These points illustrate that secure mobile communication requires more than just encryption. For this reason, Secusmart’s solution ensures encryption and authentication. Certificate authentication protects against caller ID spoofing thanks to the public key infrastructure (PKI). The Secusmart solution is independent of the mobile phone and it requires no changes to the device. The usage is simple, does not impede normal phone usage, no loss of battery time and intuitive handling, with no degradation in speech quality.

The solution makes use of crypto hardware integrated in a microSD card, which encrypts voice calls end-to-end using a 128-bit AES encryption algorithm. Authentication is certificate-based, using an elliptic curve Diffie-Hellmann key exchange and with a key agreement within 3 seconds. The microSD card is a standard chip for mobile data storage with up to 2 GB Flash storage. Additionally, it contains a secure PKI smartcard controller (NXP SmartMX P5CC072) with TCOS 4.0 operating system. The design has a high-speed AES co-processor which consumes little battery power and securely stores key.
More details-  information . Secusmart

Another interesting Advice: original source Surveillance Self-Defence EFF

Tuesday, October 20, 2009

Critical test of Dubai's credit worthiness - Dubai `s 80 Billion Dollar debt pile

original source online WallStreetJournal by Maria Abi-Habib and Stefania Bianchi

Dubai will crank up efforts this week to tackle its $80 billion debt pile with senior officials heading to Asia to meet potential investors amid reports that one of its most indebted companies has repaid a $1.2 billion bond ahead of schedule.

Top officials from Dubai's Department of Finance will meet fixed income and Islamic investors in Hong Kong, Singapore, London, Dubai and Frankfurt starting Thursday ahead of possibly selling more debt this year, according an invitation sent to bankers and seen by Zawya Dow Jones Monday.

An external spokesman for the department said the roadshows are part of "ongoing investor communication" but bankers suspect the meetings could be an early sign that Dubai may be preparing to issue the second half of its $20 billion bond program launched in February to support its economy and embattled companies.

"This will be the first time investors hear the Dubai story from officials post-crisis," Abdul Kadir Hussain, chief executive of Mashreq Capital told Zawya Dow Jones. "How this story is received will determine how successful Dubai will be over the next three to five years."

At the height of the global financial crisis, the Abu Dhabi-based central bank of the United Arab Emirates supported Dubai by underwriting the first half of its planned $20 billion bond program to bail out the sheikdom's struggling companies and economy.

Recently, Dubai officials including Omar bin Sulaiman, the head of the Dubai International Financial Center, have said they expect strong interest from private investors for the eagerly awaited second $10 billion bond.

Mohamed Alabbar, who helps oversee a committee evaluating the impact of the global credit crisis on Dubai, told CNN earlier this month that the emirate may raise the additional $10 billion by November.

The investor meetings due to start in Hong Kong on Oct. 22 are the latest sign that Dubai and its government-owned companies are trying to dig themselves out of an estimated $80 billion debt pile, most of which was incurred during the emirate's property, tourism and logistics boom.

According to Standard & Poors, Dubai has almost $5 billion worth of debt maturing between September and the end of the year. The biggest share of this debt is held by Nakheel, a unit of government-owned Dubai World. The company has a $3.5 billion Islamic bond maturing December. The bond, which will be pumped into Dubai's Financial Support Fund, is seen as a critical test of Dubai's credit worthiness.

"The Financial Support Fund is in need of further resources to fulfill its mandate of supporting Dubai's government related entities, many of which face heavy debt repayments in the coming three years," said Farouk Soussa, head of Middle East government ratings at S&P.

PAYING DEBTS

A report Monday in Middle East Economic Digest said Nakheel had repaid a 4.4 billion U.A.E. dirham ($1.2 billion) securitized bond issued in January, one month ahead of the scheduled repayment deadline of Nov. 15.
The repayment made on Oct. 15 will come as a comfort to many investors in Nakheel, and especially those concerned about Nakheel's December sukuk. A Nakheel spokesperson declined to comment when contacted by Zawya Dow Jones Monday.
Nakheel's bond repayment came on the same day that government-owned conglomerate Dubai World announced that it completed a major restructuring.

The move will help the firm save $800 million over the next three years and ease a small part of the near $60 billion of liabilities on its books. The term liability refers to a company's legal debts or obligations arising from its business operations.

Earlier this month, Dubai Holding, a conglomerate controlled by the emirate's ruler, paid back in full a $300 million loan belonging to its Sama property unit. There are also signs that Dubai is repaying some of its outstanding bills to construction contractors.

On Monday, U.K. Trade Minister Mervyn Davies said that debts owed to British contractors in Dubai have reduced, but payments remain outstanding.

"I think it has improved, but it's been a sensitive issue, and it is important that Dubai companies pay their debts," he said.

The U.K.-based Association for Consultancy and Engineering, which represents about 800 British construction firms, said in May it was tracking approximately GBP400 million in unpaid fees for building in the emirate.

(Natasha Brereton in London contributed to this story.)







Sunday, October 18, 2009

To absorb the amount of commercial real estate UAE needs 150,000 white-collar jobs

source Arabian Business
The UAE needs to create at least 150,000 white-collar jobs to absorb the amount of commercial real estate expected to hit the market in the next two years, Nomura has said.

Dubai and Abu Dhabi need to create at least 100,000 and 50,000 white-collar jobs, respectively, to satisfy future supply of commercial real estate in the two emirates, the investment bank said in a note to investors.

Commercial real estate space in Dubai is expected to increase by 20m sq ft while the Abu Dhabi market could add another 10m sq ft.

In the residential market 65,000 and 15,000 additional units are expected to be completed by the end of 2011.

“This is in an environment where jobs, still real estate and construction related, are being cut,” Nomura analyst Chet Riley said.

“Capital values are stabilizing in Dubai, but growth is not expected until the latter part of 2010.”

Residential rents in Dubai could fall another 10 percent, he said.

“The residual risk has not fully unwound yet, in our view. When the risk does unwind and the financially weak developments are sidelined for good, we will become more positive on the macro real estate fundamentals.”

Consolidation among small developers would take less time if banks withhold financing, he added.

“The banking sector will not move until the current risks have been mitigated adequately, but when it does, we feel we would have passed the current pinch point,” he said.



Extrem News - Pressefreiheit endet beim Geldhahn - ACI Dubai Scandal

source Extremnews.com

Die springereigene Euro am Sonntag und auch die Financial Times Deutschland der Gruner + Jahr AG & Co KG aus Hamburg knickten anfang August vor den Drohschreiben des Gütersloher Dubai-Fonds-Emissionshauses Alternative Invest Capital (ACI) ein. Zwar versicherten sich die Chefredakteure bei GoMoPa, dass die von GoMoPa gelieferten Recherche-Ergebnisse über die ACI und deren Chefs, Uwe Lohmann (64) und dessen Sohn Robin (34), aus erstklassigen Quellen stammen und vor Gericht beweisbar sind, aber dennoch wolle man einem finanziellen Risiko aus dem Weg gehen und löschte bereits online veröffentliche Meldungen kommentarlos auf ihren Online-Plattformen.

ACI verklärte Löschungen als Wahrheitssieg

Die ACI feierte die Löschungen und schrieb in einer Pressemitteilung wörtlich: "Darüber hinaus wurde über Herrn Robin Lohmann weiter behauptet (ursprünglich in GoMoPa veröffentlicht und anschließend unter anderem in der Financial Times und Euro am Sonntag von dort übernommen), er habe einen Privatjet für 17 Millionen Euro sowie 6 Bentleys bestellt. Zudem hätten die Lohmanns in Panama eine neue Identität beantragt. Sämtliche Äußerungen sind frei erfunden. Die beiden letztgenannten Medien, Financial Times und Euro am Sonntag, haben hinsichtlich dieser Äußerungen strafbewehrte Unterlassungserklärungen abgegeben beziehungsweise ihnen wurde diese Äußerung durch einstweilige gerichtliche Verfügung verboten."

Keine Stellungnahme von Euro am Sonntag und Financial Times

GoMoPa schrieb beide Zeitungen an und bat um eine Stellungnahme. Die Zeitungen zogen es vor zu schweigen. GoMoPa veröffentlich weiterhin die Wahrheit über die ACI. Die ACI reagierte mit einer Schmähkritik auf der Firmen-Internetseite . GoMoPa ging rechtlich dagegen vor und gewann. Die ACI nahm die Verunglimpfung aus dem Netz und zahlte die Kosten für den GoMoPa-Anwalt: 1.500 Euro. Der Inhalt der GoMoPa-Meldungen war nie strittig.

Die seit März 2009 fälligen Ausschüttungen in Höhe von 60 Millionen Euro an die Anleger bleiben weiter aus. Und Antwort, wo die 300 Millionen überwiesener Anlegergelder geblieben sind, bleibt die ACI ebenfalls schuldig. ACI-Juniorchef Robin Lohmann (34) musste, da er in Dubai auf Anordnung der dortigen Staatsanwaltschaft nicht verlassen darf (sein Pass wurde eingezogen), per Video in die Anlegerversammlung in der Gütersloher Stadthalle am 2. September 2009 zugeschaltet werden, die nicht von der ACI-Führung, sondern von den Vertrieben organisiert wurde.

Anlegerschutzanwälte und Journalisten waren nicht zugelassen. Aus Angst vor GoMoPa und seinem Netzwerk von Anwälten, wie man der örtlichen Presse erzählte, machte die Polizei Ausweiskontrollen und sperrte die Stadthalle für Nichtanleger ab. Die Anleger drinnen wurden wieder einmal mit Hinweisen auf die allgemeine Krise abgespeist. Kein Wort darüber, dass Lohmann zwei der vier ACI-Firmen einem zehnjährigen arabischen Jungen und dessen Vater überschrieben hat, wie GoMoPa-Korrespondent Martin Kraeter (KLP Group Emirates) und der Siegburger Anwalt Hartmut Göddecke bei Recherchen im Departement of Economic Development in Dubai herausfanden.

Anmerkung der ExtremNews Redaktion:

Auch unsere Redaktion bekommt aufgrund der Veröffentlichung von GoMoPa und anderen "kritischen" Pressemitteilungen immer wieder Drohungen sowie Aufforderungen von beauftragten Rechtsanwälten, die Meldungen wieder zu löschen. Sollten wir der Löschung nicht nachkommen, droht man mit Schadensersatzforderungen in fantasievollen Höhen.. Die ExtremNews Redaktion steht für eine freie Berichterstattung und lässt sich weder kaufen noch erpressen, daher veröffentlichen wir auch weiterhin Meldungen von GoMoPa und andere "kritischen" Pressemitteilungen. Der Bürger hat ein Recht auf eine Freie Presse. Genau aus diesem Grund wurde ExtremNews von seinen Gründern ins Leben gerufen, weil sie immer wieder persönlich erleben mussten, wie Unternehmen und Personen durch Drohungen erfolgreich  Einfluss auf die Berichterstattungen in den unterschiedlichsten Medien genommen haben. Es geht uns selbstverständlich nicht darum, irgendwelche Unternehmen und Personen zu diffamieren oder schädigen sondern die Bürger über tatsächliche Missstände zu informieren. Sollten betroffene Unternehmen und Personen meinen, die Berichterstattung entspricht nicht der Tatsache und Gegenbeweise haben, sind wir selbstverständlich gerne bereit auch eine Gegendarstellung zu veröffentlichen. Interessanterweise war bis jetzt aber keine Firma oder Person, von der wir Drohungen bekamen, dazu bereit bzw. konnten entsprechende Gegenbeweise liefern.


Saturday, October 17, 2009

CEO Damas Dubai quits after 165 Million US$ unauthorised property transactions

source Arabian Business

Following Sunday’s voluntary suspension of trading by Damas on Nasdaq Dubai, the company announced that it has accepted Tawhid Abdulla’s resignation.

The luxury retailer said in a statement that he had stepped down "due to his disclosure to the Board of what is understood to be unauthorised transactions conducted by him".

The statement added that the full extent of the transactions had not yet been calculated but the company’s initial estimate was that they could amount to about $165m.

The Abdulla brothers, who are founding members and current owners of more than 50 percent of the company's shares, "fully stand behind the company", the statement said.

"They have agreed to commit the necessary assets to secure and repay in full any unauthorised transactions," the statement added.

A special committee of the Board is to appoint an independent global accountancy firm to conduct an independent review and an international law firm to assist in analysis of the transactions.

The Board has appointed Hisham Ashour as CEO of the company effective from Sunday. Tawfique Abdulla will continue to serve as chairman of the Board and has also assumed day-to-day responsibilities as managing director.

The company also said it had adequate funds to meet its current financial obligations and was continuing to conduct business as usual.

"The Board remains fully committed to the highest standards of corporate governance, and has implemented procedures to ensure that the repayment is conducted in an appropriate and timely manner and that all transactions are fully scrutinized in the future to prevent a recurrence," the statement added.

Damas, a family-owned jewellery group with origins going back to 1907, raised $270m in an initial public offering on the Dubai International Financial Exchange, NasdaqDubai’s predecessor, in July 2008, in one of the largest privatisations of a family-owned business in the Gulf.

One of Dubai’s best-known brand names and a leading member of the city’s jewellery and precious metals industry, Damas has more than 500 stores across the world.

read also Police not involved in Damas probe
 and
Morning round-up: Dubai is Glut City the National crane country Blog







CEO Damas Dubai quits after 165 Million US$ unauthorised property transactions

source Arabian Business

Following Sunday’s voluntary suspension of trading by Damas on Nasdaq Dubai, the company announced that it has accepted Tawhid Abdulla’s resignation.

The luxury retailer said in a statement that he had stepped down "due to his disclosure to the Board of what is understood to be unauthorised transactions conducted by him".

The statement added that the full extent of the transactions had not yet been calculated but the company’s initial estimate was that they could amount to about $165m.

The Abdulla brothers, who are founding members and current owners of more than 50 percent of the company's shares, "fully stand behind the company", the statement said.

"They have agreed to commit the necessary assets to secure and repay in full any unauthorised transactions," the statement added.

A special committee of the Board is to appoint an independent global accountancy firm to conduct an independent review and an international law firm to assist in analysis of the transactions.

The Board has appointed Hisham Ashour as CEO of the company effective from Sunday. Tawfique Abdulla will continue to serve as chairman of the Board and has also assumed day-to-day responsibilities as managing director.

The company also said it had adequate funds to meet its current financial obligations and was continuing to conduct business as usual.

"The Board remains fully committed to the highest standards of corporate governance, and has implemented procedures to ensure that the repayment is conducted in an appropriate and timely manner and that all transactions are fully scrutinized in the future to prevent a recurrence," the statement added.

Damas, a family-owned jewellery group with origins going back to 1907, raised $270m in an initial public offering on the Dubai International Financial Exchange, NasdaqDubai’s predecessor, in July 2008, in one of the largest privatisations of a family-owned business in the Gulf.

One of Dubai’s best-known brand names and a leading member of the city’s jewellery and precious metals industry, Damas has more than 500 stores across the world.

read also Police not involved in Damas probe
 and
Morning round-up: Dubai is Glut City the National crane country Blog







Friday, October 16, 2009

Dubai Property Market already oversupplied - It`s going to be a long and slow recovery

source TheNational
Dubai home glut to worsen - The National Newspaper

The number of new homes in Dubai is expected to grow by 34,300 in the next two years, as a prolonged economic slowdown hits demand.

Dubai will have more than 340,000 residential units by the end of this year and is already oversupplied by 25 per cent, according to Colliers International, the property consultant.

“We see no reason to believe this will improve; it should actually worsen,” said JP Grobbelaar, the director of research and advisory at Colliers.

“Unless there’s a significant increase in population over the next two years, we expect these vacancy levels to increase.”

Mr Grobbelaar added that property prices in the emirate, which had fallen by 48 per cent in the past year, would only start to level out once demand started to exceed supply.

The broker believes the office sector will be worst hit, with the oversupply expected to double in the next two years.

“It’s going to be a long and slow recovery,” he said. “Levels of economic activity are greatly reduced … we don’t see any economic drivers that will lead to an increase in demand and absorb the additional supply coming on to the market.”

Read also: Quality Streets - by Rob Corder Arabian Business

and UAE needs 150,000 white-collar jobs to fill office projects - by Soren Billing Arabian Business




Monday, October 12, 2009

Hydra Properties to appeal against buyers court victory

source Zawya
Hydra Properties says it will appeal against a court decision in favour of two property buyers in its troubled Hydra Village development.

The case, brought by two European women, was recently heard through the Court of Appeal in Abu Dhabi, a source close to the couple said.

If Hydra loses the appeal, the investors will be refunded the money they have so far paid to the project.

"In principle, they have won the case, and through the legal system they should have the money released to them," said the source.

Between 10 and 20 more cases by investors were under way against Hydrawhile a further 150 claimants were seeking legal advice, the source said. The cases are being handled by MIO Lawyers and Legal Consultants, based in Abu Dhabi.

Ali bin Sulayem, the chief executive of Hydra Properties, said the company would appeal against the decision and it was still open to negotiating with investors out of court.

"I think that anyone, when there is a dispute, has the right to file cases," he said. "This is our right to appeal, we have to use it. But I am sure the door of negotiation is still open. It does not mean that if a case is filed against our company that we cannot still find a way of settling this matter."

The legal action is the consequence of a long-running battle between the investors and Hydra over contract changes, price rises on previously sold properties and demands to make payments for homes that are significantly delayed.

Talk of taking the firm to court started in June, when the Hydra Litigation Group was formed among members of the Hydra Investors Group. About 150 out of 350 people joined the litigation group, with about 50 per cent now pursuing the legal route, said Karl Howard, the co-chairman of the group.

Many of the investors had hoped to settle their contract issues - which included price hikes for property size increases due to an overhaul of the project's masterplan - amicably with the firm.

But the final straw for most came recently when they received a letter, seen by The National, from Hydras legal department saying their units would be cancelled and all money kept if they failed to sign the new version of the contract by October 15.

"I don't think you can threaten people to sign a contract that's not acceptable," said Graeme Perry, the deputy chairman of the Hydra Investors Group. "It's got to the stage where people are saying 'no' and are lodging court cases."

One investor, who has started legal proceedings and is hoping to recoup Dh450,000 (US$122,515), said: "We were trying to negotiate with HydraHydraLoading..., but then it got to the point when we realised there was no hope."

Another investor, who has also started legal proceedings, said: "I've had enough now, it's deeply frustrating. I've paid Dh400,000 and am not paying any more ... I'm interested in getting out of this and getting my money back."

More investors are expected to pursue legal action. "We do want to go ahead with it [legal action] as we don't just want to sit back," said Matt O'Hara, who has so far paid Dh250,000 towards a villa at Hydra Village.

"But we're just weighing things up at the moment."

A lawyer representing the investors at MIO declined to comment.

In June, Hydra tried to appease Hydra Village investors by giving those who had paid 50 per cent or more a payment break until the middle of next year, while penalties for late payment for those who had invested less were waived.

The company, which is owned by The Royal Group and at the time was headed up by Sulaiman al Fahim, the new owner of Portsmouth Football Club in England, also assured investors their homes would be built. The project was supposed to be delivered this year, but is now unlikely to be finished until 2011.

Hydrais one of dozens of developers that sold off-plan property to a market dominated by speculators during the boom, and which is now struggling to get buyers to keep up their payments. The situation has led to a rise in property disputes in Dubai, with Hydras being the first major dispute of its kind in Abu Dhabi.

According to Saud Masud, the head of research and senior analyst of real estate at UBS bank, many buyers did not question the fundamentals of their investments. Hydra Village was sold to investors with promises of a five-star hotel, swimming pools, fountains and significant green areas. But none of these features exist in the revised masterplan.

"In general, if you look at the amount of investment that flowed two years ago, you can't really argue the case that they were sound investments," Mr Masud said.

"It was about speculation. Investors didn't really question the fundamentals of the company, the portfolio, timelines or finances. We all knew this was a pay-as-you-go model."

Mr Masud said projects were being delayed before the fallout from the economic downturn. "The writing was already on the wall, even in 2006. Handovers were delayed significantly."

By Angela Giuffrida and Nathalie Gillet
The National 2009


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Peter Riddoch Damac Properties CEO resigns

source Arabian Business

Peter Riddoch, CEO of Damac Properties, announced that he will be leaving his job at the Dubai-based developer October 2009.

Riddoch said he arrived at his decision to leave with great difficulty but that it was time for him to move on.

“To leave an organisation that has been a significant part of my life for so many years will not be easy, but I know that the time is right for me to make some changes, focus a bit more on my personal interests and family, and possibly even take on new challenges," Riddoch said in a statement published by UAE daily Gulf News.


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Friday, October 9, 2009

Dubai Cityscape few Visitors - no deals - what a difference a year makes

original source Wall Street Journal
On the eve of last year's Cityscape, Dubai's annual real-estate trade show, Nakheel unveiled plans to build a one kilometer-high skyscraper at a glitzy event with guests including actors Catherine Zeta-Jones and husband Michael Douglas.

This year, the government-owned developer made a much more modest appearance, displaying just two of its $80 billion worth of projects at the four-day event, which closes Thursday. Plans for its Nakheel Harbour and Tower development are now on hold.

Since Cityscape 2008, Dubai's property bubble has dramatically burst. Home prices have slumped up to 50% from peaks, lending has slowed and by some estimates close to $300 billion worth of construction is either delayed or canceled.

Many were hoping that this year's Cityscape, usually a barometer of sentiment for Dubai's real-estate sector, would kick-start activity in the emirate's stalled property market, but the lackluster mood in the exhibition halls suggests otherwise.

Organizers say visitor numbers have fallen about 50% to 38,000 from a year ago. Those who are attending are there mainly out of curiosity rather than serious plans to invest in property.

"I'm here to test the market," said one visitor from Saudi Arabia with property investments in Dubai. "There are no new opportunities, but its reassuring to see that there are projects underway. That means there's still money flow here."

With just one project launch at this year's show - a $100 million development in the Kurdish region of Iraq by New Zealand-based developer Atconz Real Estate Development, developers say they are focusing more on project completion and the retention of existing customers.

"2009 is the year of the customer, rather than new projects," said Markus Giebel, chief executive of Dubai's second-largest developer Deyaar.

 LOST TOUCH

 It's a far cry from last year's event when men dressed as Zulu warriors alternately danced and lounged next to a sprawling scale model of AmaZulu World, a development slated for South Africa, by Ruwaad, a U.A.E.-based company.

During the boom times, some developers spent up to $3 million on exhibition models, entertainers and glamorous promotion girls, according to Donald Trump Junior, executive vice president of the Trump Organization.

"Some people had taken it too far," said Trump. "They lost touch with reality."

In December, plans for a $790 million Trump Tower on Nakheel's Palm Jumeirah were suspended. Trump Jr said earlier this week that the project might be restarted in the next two years.

"I'd love it to happen in the next two years, but it won't be any time soon," he said.

One of the highlights of last year's event was the launch of Meraas Development's $95 billion project called Jumeirah Gardens. The sprawling scale model drew in crowds of visitors. This year, although Meraas' model is on display, the crowds are smaller and the Dubai government-backed real-estate developer admits it is scaling down its plans.

"We looked at the market, the investors, the changing real-estate scenario," said Sina Al Kazim, chief business development officer.

Despite the gloom, there are some murmurings of recovery, or at least the market having hit the bottom.

"Perhaps what we're seeing is a new realism, a reality check," said Blair Hagkull, regional managing director of real estate consultancy Jones Lang LaSalle. "2009 has been the year of contraction. 2010 will see the ushering in of a new era of stability."

By Stefania Bianchi, Dow Jones Newswires; +971 4 3644967; stefania.bianchi@dowjones.com

Sunday, September 20, 2009

Womand found dead at the 10th floor of Jumeirah Essex House Hotel New York

source Thaindian News
New York, Sep 20 (THAINDIAN NEWS)

According to sources, a naked body of a 44 year old woman with her throat reportedly slashed and a knife sticking out of it was found at the 10th floor of the Jumeirah Essex House hotel. According to the police, a maid found the body of the brutally slashed woman’s body lying on the floor.

The police said that the woman was repeatedly stabbed by a bread knife which was still sticking out of her throat when the body was discovered. Sources reveal that a rope had been found draped around her neck, although thepolice believe that the rope didn’t play any role in the murder of the woman (according to the Police Department’s spokesman Paul J. Browne).

According to the sources, the woman who has been identified as Andree (Sara) Bejjani, did not show any initial signs of sexual assault as further investigations would reveal the actual cause of the murder. When asked about the motive that led to the heinous murder, Browne said, “We don’t have a theory yet.” Investigators are questioning the hotel employees and staffs in order to learn that whether any employee had an access to the apartment or not. It is still not clear about when the murder took place and for how long the woman had been dead.

“Our heartfelt condolences go out to the victim’s family. Jumeirah Essex House management has been working closely with the police,” said Jenny Glover, a spokeswoman for the hotel. According to the sources, on Saturday night a little girl who seemed to be in the care of security guards was reportedly found crying on the 10th floor.



Wednesday, September 9, 2009

VIP Dubai - From the Archive - Rapid Change, Emphasis on Business Overshadow Concerns on Rights


original source Washington Post May 2007

DUBAI, United Arab Emirates -- Mohammed al-Roken is perhaps the most prominent human rights activist in Dubai. That distinction has cost him. He was arrested twice. The government forced him out of his job as a professor, canceled his public lectures and banned him from writing in newspapers. Nine months ago, his passport was seized, barring him from traveling abroad.

That's not the tough part, the lawyer said. Far more difficult is the loneliness that comes with political work in a brashly exuberant city-state that prides itself on having no politics. "An activist might be praised, might be congratulated for his work, might be clandestinely supported, but there will be no uproar if something happens to him," Roken said.

Roken, a tall, bearded Emirati whose few softly spoken words belie a steely determination, is trying to create a political movement in the world's biggest boomtown where virtually everything -- from the import of cheap, often mistreated labor to the prevalence of English -- is dictated by the logic of capital. Yet on the margins of Dubai's culture of superlatives, with double-digit growth the norm and unbridled optimism a mantra, politics are timidly, fitfully but gradually coalescing in a place where notions of borders, citizenship and rights have become murkier.

"This is an apolitical city, but it will probably not stay that way for too long," said Abdulkhaleq Abdulla, a professor of political science at Emirates University. He added: "Politics brings out the good and the bad."

In a region beset by war and crises, Dubai sits like an oasis of confidence along the turquoise waters of the Persian Gulf. If Cairo was the Arab world's ideological capital in the 1950s and '60s, and Beirut its cultural capital until the Lebanese civil war erupted in 1975, then Dubai is now its economic capital, drawing legions of the Arab world's best and brightest from the malaise of their own countries. It has posted growth higher than China and India, with per capita income greater than Singapore. It has reaped the windfall of the region's oil wealth, despite having scant reserves of its own. Its leaders, a modernized tribal dynasty, style themselves as corporate executives running Dubai Inc

"This is the nature of things here, the nature of the beast. Dubai has a focus. Unlike all other cities, it has a focus and it's clear, perhaps clearer than it's ever been: economics, stay the course, our business is business, our business is growth," Abdulla said.

But with that growth have come pressing issues that no other Arab locale has had to confront so quickly. Its own citizens have become a tiny minority in a city where English, not Arabic, is the lingua franca. In the heart of one of the world's most socially conservative regions, prostitution and alcohol are rife.

Tens of thousands of newcomers arrive in the city each month, joining hundreds of thousands of migrant workers, many of whom toil with few rights and at little more than subsistence wages. Their cause has become one rallying point.

'No Civil Society Here'

"Get out of the house," Sharla Musabih, a 46-year-old activist, pleaded into her cellphone on a recent day. On the other end was a Filipina married to an abusive Egyptian man, Musabih said. "Go to the hospital, then come to me."

"This is every day," Musabih said after hanging up the phone. "Every day."

In a city of spectacles, Musabih stands out, an occasionally lonely activist trying to forge protections and safeguards for migrants. Born in Bainbridge Island, Wash., she has lived here for 24 years with her Emirati husband and six children. She has an exuberant touch: Her hands are in perpetual motion, and the woman on the other end of the phone is "Sweetie." "Excuse me, honey," she beckons to a waitress, grabbing her hand in both of hers. "I'm dying for a latte."

Her first case as an activist was an incident of domestic violence she followed in 1991. Since then, she has taken on more of those cases, as well as of children working as camel jockeys, domestic servants mistreated by their employers and women forced into prostitution.

In 2001, she set up Dubai's only shelter, the City of Hope, a two-story villa where two dozen women are staying. As part of her work, she said she has had to run a gantlet of harassment from lower-level police to angry husbands. A criminal case was filed against her -- politically motivated, in her view -- and she counts death threats among her workplace hazards. Years later, she still awaits recognition from the government that would bestow legitimacy in her endless tussles with the legal system.

"You run around like the Tasmanian devil and try to have a very big smile," Musabih said, her face framed in a brown veil.

But she added, with a slight edge to her voice, "I'm not an outsider pointing a finger. I'm an insider."

The challenges are many: She is one of the very few activists not only in Dubai, but also in the six other sheikdoms that make up the United Arab Emirates. In Dubai, the vast influx of migrant workers is testing a court system never equipped for a city with more than 170 nationalities; workers complain about unpaid salaries, dangerous conditions and an ever-present threat to deport them if they protest. One especially intricate case Musabih has taken: a Pakistani woman entangled in a custody fight who faced everything from a travel ban to a passport stolen by a vindictive husband.

"They're new at this," she said of the government. "There's a good intention, but a lack of experience."

Her assistant, Seher Mir, 27, was blunter. "There's absolutely no civil society here. There are no [nongovernmental organizations] here, people don't understand what human rights are. Human rights, women's rights, when you mention it to people, they say it's not my problem."

City in Transition

In recent years, Dubai has attracted attention for its ambition. It has built or is building the tallest skyscraper, the largest shopping mall and the biggest artificial island. "Once again history is created," reads a billboard promoting the Dubai World Trade Center. There is little that might be called traditionally Arab in its commercialized ambience or cityscape of manicured roundabouts and 14-lane avenues lined with mimosa trees and purple periwinkles, save the street names: Sheikh Zayed Road, or Khalid Bin Walid Street.

Divisions lurk in the background: between expatriates, for instance, and Emiratis, and between Emiratis who trace their origins to the Arabian Peninsula or Iran. But Dubai lacks the poverty of Egypt, the sectarianism of Iraq or Lebanon or the divisions of Jordan, a country still unreconciled with its Palestinian majority. Dubai feels transient, enticing many of its residents with the promise of money or a climate more socially liberal than in neighboring countries.

"Things are not deeply or well established because of the mood of transition. People come and make money and go," said Suleiman Hattlan, editor in chief of Forbes Arabia in Dubai. "They are interested in either the sun or business."

Added Yassar Jarrar, executive dean of the Dubai School of Government: "You would struggle to start a political movement here."

But that sense of depoliticized space conceals a simmering backlash in Dubai among Emiratis who are a tiny minority in their own city and who are often bewildered by the pace of change in a country that, within some of their lifetimes, once relied on pearl diving and fishing. Like Musabih, who tries to instill a legal culture of human rights in an unaccustomed court system, some Emirati activists such as Roken are trying to understand how to safeguard their identities from the encroachment of a globalized culture.

Abdullah, the political scientist, described it as a mix of pride in what Dubai represents and fear at the costs it entails.

"There is hardly anybody in the city who doesn't feel a bit of fear inside him, a fear of losing it all at a time when we have it all," he said. "Do you call it alienation? It's much beyond that. We live in the best of times and, in some ways, the worst of times."

For Roken, the challenge of alienation is an unusual one. He wants to embolden citizens -- a distinct minority -- to raise their voices against an authoritarian government he says caters to expatriates, the majority. The government provides Emiratis with generous housing loans, pays for schooling and ensures free health care. But Roken is more unsettled by the intangibles: entering a mall where virtually everyone is a foreigner, beaches populated by swimmers in dress he considers immodest, and wine-tasting parties at luxury hotels. Only a more democratic polity, albeit entrusted to a minority, can stanch what he sees as Dubai's more flagrant excesses.

"The majority sets the rules of the game," the 44-year-old lawyer said. "If we keep ourselves passive, the identity, the culture will fade away very quickly. Activism is a way of protecting our identity and our culture, in a positive way."

"A one-voice society has been tried in other countries and failed," he said. "We shouldn't repeat other people's failures."

As a way of adding voices, Roken has pushed for a more aggressive role by professional unions, often the arena of activism in the Arab world. But he said the government has imposed restrictions on their work. The government has canceled activities, including his own talks; security forces, he said, sometimes vet the names of participants in conferences abroad.

"The space for freedom has become smaller and smaller," said Mohammed al-Mansoori, who heads the Jurists Association.

Like Roken and others, Mansoori laments the loss of what he says was an intimacy with the ruling families a generation ago. Since the 1980s, he said, the clans that run the Emirates have increasingly assumed the trappings of power, distancing themselves from those they govern. As the traditional society fades, Mansoori has pushed for a more modern alternative: an independent judiciary, human rights and labor laws consistent with international standards and freer elections.

Among his pursuits: ways to protect the country's identity.

"Nobody wants to listen," he said.

Mansoori, 49, fled to London last July after a disagreement with a government official he says was politically motivated. It followed several official warnings, he said, to stop speaking to foreign media about topics from Musabih's shelter to wildcat strikes to the rights of children of Emirati mothers. He plans to return, with a British lawyer, in coming weeks.

"It's normal to be nervous," he said. "But I've prepared myself to face anything."

He paused on the phone for a moment, with a hint of unease. "We'll see."












Wednesday, August 26, 2009

Nakheel Dubai - Discovery Garden residents take their row to Dubai Rulers Court

source Arabian Business


Angry residents of Dubai’s Discovery Gardens are set to take their row to the Ruler’s Court this week in a bid to force developer Nakheel into slashing “exorbitant” service charge fees.

More than 90 tenants and homeowners have signed a petition, set to be presented to the Ruler’s Court and Dubai’s Real Estate Regulatory Authority (RERA) later this week, which asks the government to force Nakheel back to the negotiating table to review the charges, which cover building maintenance, community and cooling fees.

Residents are due to pay the first installment of next year’s fees on October 1.

“We want the government to freeze our payments to Nakheel and to force Nakheel to justify its charges in light of the substantial drop in costs we’ve seen since last year,” said Michael Aldendorff, the head of an unofficial resident’s association.
“We will not accept the current fees when Nakheel has failed to deliver on common areas and we have substandard building maintenance. As the petition says, we flatly refuse to pay.”


According to paperwork issued by Nakheel to residents, RERA has approved maximum service fees of AED10.35 per sq ft in building maintenance, AED2.8 per sq ft in community charges, and AED8.7 per sq ft in cooling charges: a total of AED21.85 per sq ft.

Residents in 1,000sq ft flats would then pay annual service fees of AED21,850 ($5,948).

According to Aldendorff, tenants in Dubai Marina typically pay about AED15 per sq ft in service charges, while those in The Greens pay between AED13-15.

“You can understand our concerns and skepticism that these [Discovery Gardens] rates are not in line with the market and are excessive,” he said.

In June, following protests by residents, Nakheel said it would reduce the service charge for Discovery Gardens by AED5, down from between AED18-19 per sq ft the previous year exclusive of cooling, and would backdate the new rate to January 1, 2009.

A spokesperson for Nakheel said: “We continuously review service charges to ensure that owners receive the best service for their fees. Any savings which can be made are then passed on to the owners. All accounts are independently audited to ensure accuracy and transparency for homeowners.”

Service charges for 2010 have not yet been finalised, the spokesperson added.

However, Aldendorff argued that the state-owned developer has failed to deliver communal pools and cycling or jogging trails.

All three are still advertised as forming part of the Discovery Gardens development but, a year after handover, have not materialised.

“We are still paying for these facilities, but they haven’t appeared so how are these charges justified?” he said. “This money is being diverted elsewhere by Nakheel.”

Discovery Gardens’ residents are now hoping the Ruler’s Court will intervene in their favour.

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Dubai - Herve Jaubert - The Spy who came from the sea

source The National

If Hervé Jaubert is to be believed, the one thing he learnt well during 15 years spying for France’s intelligence service was how to disappear.







So in May 2008, facing accusations in Dubai of fraud and embezzlement worth Dh14 million (US$3.8m), this country’s most wanted Frenchman appears to have done just that. He vanished.

He tells a tale befitting a spy thriller, much of it difficult to confirm as fact, but no less fantastic for a man convicted in absentia for embezzlement, and named in a separate case in France.

It was on a Friday morning during dhuhr prayers, under a scorching sun in Fujairah, that the former submarine builder for Dubai World claims he boarded a rubber dinghy. He charted a six-hour route to a French accomplice on a waiting sailboat, and then fled to India.

For the nearest patrol craft, 5km away, giving chase would have been impossible, according to Jaubert – even if his dinghy had been sighted. A master scuba diver, he said he had swum underwater for more than an hour to disable the fuel line to the boat previous night.

In the days before he executed the plan, he claims, he scoped the country’s borders using Google Maps for a perfect escape route, then surveyed the area on the ground. To elude the authorities, he said, he used aliases to book hotels and even to buy a sail boat. He disguised himself as a bespectacled tourist, a bearded Emirati man in a dishdasha and even, he says, as a local woman by wearing a padded abaya misted with Arabic perfume.

“When you wear an abaya, you become a ghost. Nobody talks to you. Nobody looks at you. Not even a police officer would talk to you.”

Jaubert is not shy about the fact he is trying to profit from this story. His book, Escape from Dubai, will be released in October.

But to UAE authorities, he is nothing more than a swindler.

On April 15, Jaubert was tried in absentia and convicted of illegally acquiring Dh14.12m by abusing his position with Exomos, a subsidiary of Dubai World, according to court records. He was sentenced to five years in prison but denies the charges against him.

He also denies being the Hervé Jaubert who, according to a Canadian Broadcasting Corporation report, was sentenced to two years in prison in France for a 1994 plot to intimidate a company official over a water supply deal.

“I know the story but it’s a business story; it’s my name so it sounds like me but I was not an army captain. I had nothing to do with these people, it’s a fabricated story. I can e-mail you a certificate from the French ministry of justice showing that I have no criminal record.”

In the UAE case, two witnesses, an Egyptian and an American, both directly linked to the investigation, testified in writing against Jaubert.

The first, a financial investor, told the court: “Jaubert used Exomos bank accounts to pay off lawyers in the United States. In addition, he expensed Exomos shipping his car and his wife’s car.”

The witness added that Jaubert used Exomos bank accounts, “to purchase items from his company in the US, Seahorse Submarines, many of which did not arrive at all”.

The total was worth Dh11.86m according to the witness.

Court records also show Jaubert charged Exomos Dh1.8m for two submarines “which were never delivered”. The witness claims Jaubert gave himself a commission exceeding Dh2m.

The second witness, an American, said: “Two submarines were purchased from him. The first, Discovery, was purchased for Dh1,100,000. The second, Sting Ray, was purchased for Dh220,000 ... The submarines arrived with two cars belonging to him and his wife. The submarines were not functional underwater.”

Jaubert claims his fellow employees were “coerced” to testify against him or face dismissal.

Originally hired in 2004 by Sultan bin Sulayem, the chairman of Dubai World, Jaubert was expected to build recreational submarines as the chief executive of Exomos Submarines. The plan was for his luxury underwater craft to serve as a niche product for marine tourism.

On a salary of about US$13,000 a month, Jaubert lived at the Garden View Villas in Jebel Ali, drove Hummers and a red Lamborghini shipped from Florida and cruised around in high-speed boats.

“The way [the job] was presented to me was basically I would have unlimited funds,” he said. “I could build the factory I wanted and develop the models I wanted. To me, it was the opportunity of a lifetime.”

Among his claimed achievements was the Nautilus, a 45ft vessel capable of carrying nine passengers and designed to look like the fictional submarine in Jules Verne’s Twenty Thousand Leagues Under the Sea.

“It was a remarkable vessel. A beautiful submarine. It looked like an antique. Because of the nature of how it looks, I scheduled international media coverage. You can imagine a submarine like that in the Palm Jumeirah; that picture would have circled the globe and would have brought a lot of exposure to the company and on its creator.”

Days before the planned September 2007 launch, however, he was fired. Jaubert believes this was a successful attempt to block his “working design” from ever being publicly shown to function.

He claims the submarine still exists, but is languishing in the open air with no maintenance.

Like a good spy, his defence is to call the facts in question: he says Dubai World’s auditors, who questioned him about faulty or missing equipment, were unqualified to assess what parts were missing or not.

“If I have an autopilot submarine system, do you know what it looks like? No. Same with them. They labelled it as missing but they did not know what it was,” he said.

Dubai World auditors questioned him for two years, he said.

His passport was confiscated and Jaubert estimates he was interrogated at least 20 times for hours on end by auditors, a prosecutor and police. He alleged in press reports that he was threatened with physical abuse.

He was ordered to repay the Dh14m. “I knew I was facing life imprisonment,” Mr Jaubert said. “They had my passport and I lost my job. When you don’t have your passport, you cannot survive in Dubai ... so I prepared my escape.”

Obtaining a bogus passport or a new one from the French consulate was out of the question due to travel bans that he knew would be flagging his name. Quitting the country without an entry stamp would pose a problem, as would going through Saudi Arabia. “That would just make your situation worse,” he said.

“In the end, I’m a sailor, I’m a navy officer, so to me the ocean was a natural way out.”

With his claimed background in espionage serving with French intelligence until 1993 – though it is rare for a spy, and often even an ex-spy, to admit that he is one – he claims he already had the abilities to concoct an elaborate escape.

“Military training, combat, skydiving, shooting, explosives, electronics, surveillance, there are so many things,” he said, reciting his claimed skills. “Manipulation, psychology,” he added.

Jaubert enlisted a friend from France, also said to be a former agent for France’s Direction Générale de la Sécurité Extérieure, to help map his getaway to a 35ft sailing boat positioned in international waters and crewed by his co-conspirator. They sailed for eight days, finally landing in Mumbai. According to Jaubert, he travelled from there back to Florida to be reunited with his wife and two sons, whom he had sent home beforehand.

“I had a formidable feeling of freedom,” he said.

“I may be a former military man and skydiver and all the commodore stuff, but for [the criminal charges] I lived in fear every single day. Once I found myself on a dinghy in the water, then it was my element.”

Now in the US, Jaubert, who is not an American citizen, but said he holds a green card for permanent residency, feels confident he has evaded the authorities in the UAE: “If they want to extradite me from the US, it’s going to take some legwork.”

His new book, he hopes, will also help exonerate him around the world. If nothing else, however, it is likely to make him some extra cash.

read also : xpress Gulf News Dubai  or The Washington Post






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Friday, August 21, 2009

Important Notice : 21.August 2008 Update : Fraudulent announcements from The Pirates and Spyer Dubai9Stars


The Blogger Dubai9Stars.blogspot.com copied our Blog layout 1:1 to simulate a mirrow Blog ( we reported about this)

Now the Blogger Dubai9stars published again false and now also fraudulent defame informations about dubai7stars.blogspot.com

It seems Dubai9Stars has a real big problem with a special still pending court case in Dubai. This Case Al Fajer Proeprties seems to be the reason for Dubai9Stars to target us in this way.
The Fantasy and now shown Agression of Dubai9Stars against Dubai7Stars is worth to show our readers.



As we assumed, we get now the confirmation by they last actions of Dubai9Starst, that this Blog dubai9stars.blogsspot.com seems to have a special mission - to target and mislead Dubai7stars and also other individuals.
( click to enlarge the piture)

Meanwhile we take it easy, the official legal investigation from our side is still going on and this will be the last public response to the slander campaign of Dubai9stars.

We have to post the Response here, because Dubai9stars is not reachable over the own comment section. They post to our comment section yesterday under anonymous - so no way to respond to them by this way. They are the ones who are operating under the cover " Anonymus"

Our Message to Dubai9Stars

So, Dubai9stars , with your threat today it seems you have any problems with the press releases about the case Al Fajer Properties and the case of Dr. Shahram Zadeh who filed a civil lawsiut against Maktoum Hasher Maktoum Al Maktoum and Al Fajer Properties. The Story of Mr. Zadeh was first published in the Wall Street Journal .

And by this,problem you have you create now a mirrow Blog of our Blog Dubai7Stars ...to do what with this ????????????

Your outing of today shows us that you focus extremely in this direction.

Are you also hunting and investigate journalists from the internatinal press who reproted about the scandal Al Fajer Properties and the CEO Shahram Zadeh and the Media Blockout for Journalist and more in this case Al Fajer Properties - Dynasty Zarooni - Jumeirah Business Centre Scandal in Dubai ?

Are you vasalls of this special network who defarm individuals, by simulating other Blogs and providing Forums like Skyscrapercity with fraudulenent informations ?

We do not know what`s going on in your brain and what kind of illustar combinatoric you produce .

Dubai7stars is INDEPENDENT

Which Blogs Dr. Shahram Zadeh registered, is out of our acknowledge. And if so, it`s his good right to do so.

dubai7stars or 7starsdubai ( in cooperation with us) are registered since 2005 - until today they havent been purchased from whom ever.

Both domains are existing since 2005 - the owner of dubai7stars and 7starsdubai has not purchased them to Dr. Zaddeh.

We Dubai7Stars have also no editor or sponsor whos name is Dr. Shahram Zadeh nor we are the ghostwriters for Dr. Shahram Zadeh or any other person in relation to Dr. Shahram Zadeh.

Our Blog Dubai7stars contents 99% various press releases from the international press only and 1 % comments. That`s it.
To this we show a wide range from the local UAE Press over our widgets , so every reader of our Blog has the full spectrum to the Press in UAE.

What we see by your threat of today is, that you Dubai9Stars seems to have extreme interest to defam Dr. Shahram Zadeh and us. To mirrow our Blog Layout , to misuse the copyright of the picture in the header, to post under " sheikha" and to tell others that we have copied you, this is something like Kids do. But now you have shifted in the criminal corner.

You dubai9stars ride yourself deeper and deeper in legal problems whith threads like this and the really poor action of your 1:1 layout copy of our Blog dubai7stars. Now you have expressed yourself and it needs not a lot of fantasy what is staying behind this acts.

We are also amused that you dubai9stars are since 24 hours brand new appear on Twitter with the same campaign, by using our copyright picture also here as backgraund and copy our following list 1:1. Here on Twitter with dubai9stars you opereate under the pseudonym Stefan Haswell, just having 1 Tweet.




(click to enlarge the picture)


You mirrow yourself, now under the pseudonym Lars Barton by using 9starsdubai. The Crux of your following list, you follow yourself. what kind of simulation is this ?

We see by your additional Twitter accounts that you extremly love our picture from the Burj Al Arab. You can purchase it from us for 5000 US or you should just take a sunbed at Bab Al Yam and get in the right position to take the exact same shot. Your sponsor will make it possible for you, he is at home there.


The relevant persons (who know us since years) - have been already informed about this super idea of you dubai9stars - just to give them an impression who you are and about the " who " we assume is standing behind your acts. The feedback we got is amazing.


You also link your readers to to Skyscrapercity. It`S amazing to see, that also here you create a brand new user name "TomJones69" and post the misleading false informations under this name.
Has TomJones found you or did you find him ? Why operating so brand new under TomJones69 since yesterday with only 2 Posts ?




(click to enlarge the picture)

By linking to Skyscrapercity you forget to mention what you also whish to spy out further persons over this forum , this with the help of users from skyscrapercity who colaborate with you.
A Screenshot of your activity from at Skyscrapercity is already taken. ( see pic beside)

It is interesting to see how strong you focus to defam Dr. Sharam Zadeh, how deep is your interest to hunt persons who are sharing free opinions and how extreme you wish to protect and promote Al Fajer Properties and his President Maktoum Hasher Maktoum.

As you know, we have already forwarded your acts of the event that you mirrowed our Blog for further legal investigation . You will have the problem with the regristration date of your so called " layout brainchild" dubai9stars and the copyright misuse of the header picture and the already mentioned gadget. To simulate with false journal dates, that your Blog is longer existing , will not help you.

Now you have extent this matter, and we see no other way than to file a criminal complaint against you.

With the defarmation you publish today - you will have another legal problem.




(click to enlarge the picture)

Generally your behavior is like a status from the Kindergarden and you expressed yourself enough with your statement (copied below) - like we assume from the beginning.

The correspondence with you dubai9stars over this way , for us is now at end and will be investigate and monitored by the relevant official authorities, like we mention to you earlier.

Dubai 7 stars, August 20. 2009

___________________________
The Full Text
Dubai9Stars wrote in their Blog

Interesting post about our mates at 7starsdubai....
As we were checking out some neat photos at skycrapercity forums, we noticed an intriguing post nestled in at the bottom of page 24 by tomjones69 about our mates at 7starsdubai. Click here to see the post or read the following.

Who is ebony007 and who is 7starsdubai?
For those of you who may be wondering who ebony 007 it is none other than Shahram zadeh aka Dr Shahram aka Dr Zadeh

I’ve been following the story and eventually linked up all the blogs that have been created that eventually led me here. I found out that Ebony 007 is Shahram Abdullah Zadeh. The disgraced CEO that created 4 biliion in liabilities on al fajer and did not build for 4 years.

They fired him as they found out that he was fleecing the company as he was more foucussed on taking commissions than running a property development company. According to Nakheel, he used to work as a broker there before he came and worked for Al Fajer.

To add more spice to the story after a criminal complaint was filled against him he went on the run and filed a frivolous civil suit in the hopes of getting the criminal charges filed against him to be dropped.

He also purchased a blog from a german lady called 7stars dubai. He also registered multiple variants of the same web site and other blogs which he is using as part of an amateur blogging campaign against his former employer.

Everything that Ebony007 said in the blog turned out to be more fantasy than reality. I am Sure Legal Eagle would agree and would be able to connect the dots 2. Enjoy : )

PS - I'll be trying to dig up some more on the history of this guy so stay tuned.

It sounds like Shahram Abdullah Zadeh may be the puppet master pulling the strings over at 7starsdubai. While we're not sure if it's Zadeh, it wouldn't surprise us all that much. He is the former manager of Al-Fajer Properties, who was removed from his position for stealing money from the company by forging contracts and surreptitiously moving money into his own accounts. Zadeh is suing several members of Dubai's royal family, alleging they illegally took control of the business. The defendants in the suit have flatly denied the allegations, stating that Zadeh was bilking the company dry. See this Forbes story.

If tomjones69 is in the know, it sounds like Zadeh is projecting his bitterness at the entire industry!
Posted by Sheikha at 12:21 AM 0 comments
Labels: Al-Fajer Properties, Dubai real estate




Nakheel Dubai Government controlled developer presses buyers for cash

source The National    20. August 2009





Nakheel is asking investors using credit transfers for property purchases to top up their payments with cash, as it seeks to raise funds ahead of a mid-December due date for a Dh3.5 billion (US$953 million) bond.

According to brokers, the Dubai Government-controlled developer allows investors in delayed projects to sell their downpayments to other investors who have already invested in other Nakheel developments.

But now the company is no longer allowing customers to use credit transfers alone to fund instalments, and is demanding that part of the payments are made in cash, brokers say.

“For example, when a buyer has Dh1m to pay, Nakheel would say you need to pay 30 per cent in cash, which makes Dh300,000,” said one broker, Farid Ahmad Hussein.

“They will accept a credit transfer of Dh700,000 from somebody else. The investor can get this Dh700,000 maybe at 40 per cent discount now in the market from another investor. In total he has saved Dh280,000.”

Nakheel needs to pay back a Dh3.5bn bond on December 14, in what is being seen by international lenders and rating agencies as a litmus test of the Dubai Government’s willingness to support its affiliated companies facing financial difficulties.

So called “credit consolidations” were triggered by the collapse in property prices last autumn, which saw scores of developments either cancelled or delayed and effectively ended the “off-plan” property market.

Investors in stalled projects have been able to sell their downpayments, usually at a loss, to other customers of the same developer, and then those downpayments can be used on continuing projects. These credits can only be transferred between buyers that have already made downpayments and are not available on the secondary market.

Developers facilitate the transfer of credit between investors in different projects to generate funds needed to complete some developments, while also making it easier for them to abandon others. External brokers help to match buyers.

Unlike other developers, Nakheel requires the transfer of ownership between investors to be completed before credit is moved between properties.

“Investors in projects that have been deferred have the option of consolidation if they own other properties within the Nakheel portfolio. The advantage to the investor is that Nakheel is able to hand over property to the owner sooner than it might on a deferred project and help investors reduce their financial exposure,” Nakheel said in a statement. The developer declined to comment on whether cash payments were also required to complete property consolidations.

Nakheel has shortened the time it takes to complete such transactions to about a month, from three or four months previously, according to brokers.

Nakheel, the developer of The Palm Dubai, has spent billions of dirhams on projects that are still under construction, while adding further offshore island developments including The World and The Universe.

But development on such a massive scale has come at a high price for the company, which is now struggling to repay debts accumulated during the six-year building boom.

The trade in credit notes on stalled projects is helping revive activity in the property sector, according to Rajesh Sony, a director of Bluechip Real Estate. The firm, he said, generates 90 per cent of its turnover from matching buyers and sellers of credits.

“This is a win-win situation between the developer and investors. If all the investors of one project transfer the money elsewhere, the developer may call off the project without having to refund the money to investors. At the same time, investors can get out of the market without losing all the money, and other investors in ongoing projects can pay their instalments at a cheaper rate,” he said.

The exchange of Nakheel credit, or consolidations, began in February on projects that include the Dh4.4bn Dubai Promenade, and the Dh2.9bn Trump Tower, the centrepiece of Dubai’s original Palm Island development, according to Mohammad Mujtaba Vakil, a broker from Linkage Real Estate.

He said that while cash components were not requested on earlier transfers, Nakheel now “would not accept anything less than 30 per cent”.



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