Developers welcome probe into financial irregularities by firms

The ongoing interrogation of the officials of real estate companies is seen as a positive step towards further strengthening of transparency in Dubai's property market, according to developers.

"There needs to be more transparency and accountability at all levels of a company. Significant improvement in this will come in the market with the introduction of the property court in September. The important thing, however, will be the need to educate all authorities with respect to the realty market in Dubai," said Dr Shahram Abdullah Zadeh, Chairman of Marina Impex told Emirates Business.

"Dubai is part of the process of growth and these things are a part too," he said. "Real Estate Regulatory Authority is coming up with new laws to control the market."

This week Nakheel confirmed one of its employees was under investigation on suspicion of bribe-taking. The announcement came a day after a probe surfaced involving former employees of mortgage lender Tamweel and months after investigations began into alleged irregularities by executives at Dubai Islamic Bank and its affiliate Deyaar.

Rufi Real Estate's Director, Mehrooz Manzoor Rufi said: "I think it is a positive step by Dubai to reveal identities of those who are involving in wrong doings in the real estate market. It will not have a negative impact, but a positive one as it creates a confidence boost that even a government-owned company is being questioned."

Stephen Tight, the former Chief Executive of Aqua Dunya, said: "When the real estate sector in any market further matures, it is important to explore the looseness in control. Rera is doing excellent work in establishing transparency and accountability in the market."

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