A dispute over an agreement signed seven years ago between Emaar and a Saudi developer has ended with an out-of-court resolution.
Emaar and Jadawel resolve dispute
Adispute over an agreement signed seven years ago between Emaar and a Saudi developer has ended with an out-of-court resolution.
Emaar and Jadawel International have ended their legal case "amicably with neither party having any claim against the other", according to a joint statement released yesterday.
In December 2003, Emaar reached an agreement to undertake joint ventures with Jadawel, a company controlled by the Saudi billionaire Mohammed bin Issa al Jaber.
Jadawel, founded in 1982, is one of Saudi Arabia's largest house builders.
In 2004, Jadawel filed a case with the Board of Grievances in Riyadh accusing Emaar of backing out of a deal. But Emaar argued that the deal was conditional on undisclosed terms that it claimed were not met.
Jadawel originally asked for Dh1.4 billion (US$381.1 million), although that eventually ballooned to $1.2bn.
In 2008, the Riyadh board rejected Jadawel's case. "All claims by Jadawel International were rejected by the arbitrators who declared the conditional agreement … to be ineffective, unenforceable and with no legal effect," Emaar announced at the time.
But the ruling was later reversed, prompting Emaar to appeal last year against the reversal.
Last night, the two sides released a joint statement. "Over the past months, efforts were made to reach an amicable settlement," the parties said.
They agreed to waive all claims against each other resulting from the original disagreement.
Neither company could be reached for further comment.