UAE property developer files for bankruptcy, reports FT

DUBAI: Al Murjan Real Estate, developer of a US$3 billion housing project in the United Arab Emirates, has filed for bankruptcy after running into financial difficulties, the Financial Times reported on Nov 24.

The company filed for insolvency in the emirate of Sharjah and two liquidators have been appointed, the FT reported, citing documents it had obtained, and cited lawyers saying that it was the first court-mandated bankruptcy of a distressed property project in the emirates.

Property buyers would likely find it difficult to recover downpayments they made on homes in the 8,000 home White Bay development, which Al Murjan had started to build in another emirate, Umm Al Quwain, the newspaper said.

As property prices plummeted some 60 percent since peaking in 2008, more than half of buyers had not maintained payments, the FT reported.

The project was a joint venture between Sheikh Abdullah bin Rashid Al Mualla, the deputy ruler of Umm Al Quwain, and Sheikh Tariq bin Faisal Al Qassimi of Sharjah-based Emirates investment group, the FT said - Reuters