UAE launches ‘major investigation’ into Dubai developer Union Properties

The UAE has launched a “major investigation” into some of the senior executives at Dubai-listed real estate developer Union Properties, the country’s attorney general, Dr Hamad Saif Al Shamsi, said on Sunday.

The investigation by the Federal Public Funds Prosecution involves complaints lodged by the UAE’s markets regulator, Securities and Commodities Authority, on allegations of financial violations committed by the company’s chairman Khalifa Hassan Al Hammadi as well as some of its senior executives, official news agency WAM reported.

According to the allegations, the developer sold property “at less than its real value” and hid the name of the beneficiary of the sale. The executives are also accused of forging documents and other violations that caused harm to the company and its stockholders, including violating accounting standards systems to hide the loss incurred by the company by changing the classification of its investments.

In a statement, Al Shamsi said that the Public Prosecution has immediately started the investigation procedures under his direct supervision.

He also ordered the seizure of property of some of the accused and they have been barred from leaving the country, the report stated.

The legal status of the contracts, deals and procedures initiated by the accused is being investigated and subject to a technical examination by specialists with the participation of the Securities and Commodities Authority and law enforcement authorities.

Al Shamsi has directed authorities to take all necessary measures to reveal the aspects of the investigation, the roles of the accused and to deal firmly with anyone whoever attempts to defraud or tamper with the national economy.

“The Public Prosecution will continue to inform the public in accordance with the course of the investigation and the interest of the investigation process,” he added.

In a bourse statement, Union Properties said that based on the instructions of the Securities and Commodities Authority, shareholders at the general assembly meeting on Tuesday, October 26, will also vote on the dismissal of seven board members including its chairman Al Hammadi as well as Darwish Abdullah Al Ketbi, Mohamad Fardan Al Fardan, Abdul Wahab Al Halabi, Fathi Bin Grira, Dahi Al Mansouri and Klar Jorg.

The latest announcement comes even as Union Properties announced on Sunday that the arbitration claim filed by one of its subsidiaries has now reached approximately Dhs3.5bn.

The arbitral tribunal is expected to issue its decisions on a number of the claims in the second quarter of 2022, the company said in a statement.

Read: Dubai’s Union Properties says arbitration claims by its subsidiary has reached Dhs3.5bn