Al Mazaya settles issues with DIFC

Kuwait-based Al Mazaya Holding has resolved all pending issues with Dubai International Financial Centre (DIFC) related to the Sky Gardens project, CEO Khaled S Esbaitah said yesterday.

"We have finally resolved all our issues and have signed a deal with them (DIFC)," he told Emirates Business. He declined to comment on whether the company had struck any deal with Islamic mortgage company Amlak Finance, saying: "I don't want to jeopardise the deal by commenting something."

Amlak charged in a statement on the Dubai Financial Market website that the agreement to buy Sky Gardens at the Dubai International Financial Centre for Dh1.65 billion collapsed because a unit of Kuwait's Al Mazaya Holding was unable "to honour the terms and conditions stipulated in the memorandum of understanding".

Last week, Amlak had said it stands firm on receiving Dh82 million in penalty in addition to the Dh82m down payment it made for the Sky Gardens tower in DIFC within seven days, starting June 1.

"The seller has failed to execute the definite agreement and has therefore failed to complete the transaction as provided in the memorandum of understanding. Amlak has no option but to refer the matter to appropriate legal authorities should the seller fail to make payment," the company said in a statement.

Amlak officials could not be reached for comment. However, Esbaitah had told Emirates Business they were trying to salvage the unfortunate situation and hope to find a solution by early next week. He emphasised that the tussle will not have any impact on their relationship with Amlak.

"We have very good relations with them [Amlak] and the issue will not dent it."

The UAE is also planning to set up a court to deal with property disputes, it was reported earlier. The court was to open on June 1 and will operate under regulations that differ from civil courts.

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