{"id":9028,"date":"2016-03-25T00:29:13","date_gmt":"2016-03-24T17:29:13","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=9028"},"modified":"2016-03-24T22:00:36","modified_gmt":"2016-03-24T15:00:36","slug":"arabtec-renews-dh1-4bn-dispute-against-meydan-three-years-after-dropping-dubai-racecourse-claim","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-renews-dh1-4bn-dispute-against-meydan-three-years-after-dropping-dubai-racecourse-claim\/","title":{"rendered":"Arabtec renews Dh1.4bn dispute against Meydan three years after dropping Dubai racecourse claim"},"content":{"rendered":"


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\nArabtec is to recommence its legal action against Meydan, reviving one of Dubai’s biggest construction disputes since the financial crisis.It comes three years after the pair agreed to out-of-court talks to resolve their dispute over the redevelopment of the horse racing venue Arabtec is now recommencing its bid to recover its half of a Dh2.8 billion claim lodged for work it carried out to build the Meydan Racecourse.
\nThe news comes as Meydan prepares this weekend to host the Dubai World Cup, the world’s richest horse race.Arabtec had been part of a joint venture with the Malaysian contractor WCT which filed the Dh2.8bn case against Meydan in 2009 with Dubai International Arbitration Centre (Diac) after it had been removed from the project and had its bond recalled. Meydan launched a Dh3.5bn counter-claim against the pair in 2012.
\nArabtec and Meydan said in February 2013 that they were both withdrawing their claims against each other to hold out-of-court talks, with a joint statement declaring that “four years of legal proceedings have failed to make sufficient progress, so we have decided to find a faster and more practicable way forward to resolve matters”. WCT continued to pursue its claim for its Dh1.4bn portion, and won its claim last July, with Diac awarding the company Dh1.1bn, plus legal costs of Dh26.7 million and arbitration costs of Dh8.2m.
\nHowever, Arabtec has been unable to reach a deal with Meydan, and its board of directors took a decision this week to resume its claim.Steven Salo, Arabtec’s head of investor relations, told The National that “an amicable solution has not been reached” with Meydan.He added that the claim was “part of our strategy to ensure all of the group’s entities seek the recovery of receivables” owed to them.
\nMeydan Group did not respond to a request for comment. The dispute relates to a contract awarded by Meydan to WCT\/Arabtec in September 2007 to build the Meydan Racecourse. Meydan cancelled the contract in December 2008, citing “non-adherence to the agreed time schedule for construction”. Meydan continued the building programme working with subcontractors, and the racecouse eventually opened for business in 2010.
\nThe course, which also has a hotel and a mile-long grandstand with a capacity to house 60,000 spectators, is home to the Dubai World Cup, billed as the richest horse race in history with a $10m prize pot. The 2016 World Cup takes place on Saturday.Last month, Arabtec declared a preliminary loss of Dh2.3bn for 2015, which it blamed on a difficult regional construction market and some poorly performing projects. Revenue declined by 12 per cent to Dh7.3bn.
\n“Due to the backdrop, the group is even more focused on maintaining its working capital position and ensuring collection of its receivables,” the company said in a statement to the Dubai Financial Market. “Accordingly, all of the group’s entities are vigorously seeking full recovery of receivables due and, where necessary, enforcing the group’s rights where payments are not made.”In June last year, the building consultancy Arcadis said that construction disputes in the region had risen to their highest levels since 2011, when cases filed following the 2008 global financial crisis were at their peak. Its annual global construction disputes survey found the value of disputes had jumped by 88 per cent year-on-year to $76.7m.
\nHowever, James Foster, head of construction disputes at Gowling WLG in Dubai, said that the nature of disputes had changed since 2011.”What we’re seeing with construction disputes is that they’re not being caused by a lack of cash, which had been the case five or six years ago, but because projects have become a bit too big for the skillsets of those delivering them. “Sometimes, a case is brought because a project is delayed. This could be for any number of reasons – for example, because a major subcontractor has failed to deliver, or because of a design issue.”
\nmfahy@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Arabtec renews Dh1.4bn dispute against Meydan three years after dropping Dubai racecourse claim<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Arabtec is to recommence its legal action against Meydan, reviving one of Dubai’s biggest...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-9028","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-2lC","jetpack-related-posts":[{"id":13094,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-losses-continue-but-dubai-contractors-financial-performance-improving\/","url_meta":{"origin":9028,"position":0},"title":"Arabtec losses continue, but Dubai contractor's financial performance improving","date":"May 15, 2016","format":false,"excerpt":"\r Contractor Arabtec has reported its sixth straight quarterly loss, despite an upturn in sales. The company reported a Dh48m loss for the first three months of 2016, which was an 85 per cent reduction on the Dh321.4m loss the company declared in the same period a year ago.Revenue increased\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":76642,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/in-pictures-2018-dubai-world-cup-carnival-at-meydan-racecourse\/","url_meta":{"origin":9028,"position":1},"title":"In pictures: 2018 Dubai World Cup Carnival at Meydan Racecourse","date":"January 14, 2018","format":false,"excerpt":"\r Mickael Barzalona riding Heavy Metal wins DWC Carnival 2018 opening night feature race the Al Maktoum Challenge R1 (G2)\r \r Source : arabianbusiness.com\r Read more...In pictures: 2018 Dubai World Cup Carnival at Meydan Racecourse","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13138,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-looks-to-shore-up-balance-sheet-as-dubai-contractors-losses-narrow\/","url_meta":{"origin":9028,"position":2},"title":"Arabtec looks to shore up balance sheet as Dubai contractor's losses narrow","date":"May 15, 2016","format":false,"excerpt":"\r The contractor Arabtec has said that it is \"looking at ways to enhance its capital structure\" after posting its sixth successive quarterly loss on Sunday.The company said it \"is currently engaged in discussions with Aabar, its largest shareholder, in respect of potential options for cooperation and continues to remain\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":48210,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/work-set-to-start-on-dubais-meydan-one-mall\/","url_meta":{"origin":9028,"position":3},"title":"Work set to start on Dubai's Meydan One mall","date":"March 16, 2017","format":false,"excerpt":"\r A groundbreaking ceremony was held at the 40.4 million-square-foot Meydan One site on Wednesday evening to mark construction of the project's retail mall situated between the existing Meydan racecourse site and Al Khail Road.The new mall will contain about 620 shops, including a pair of department stores and a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":49178,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-is-on-top-of-risks-says-firms-chief\/","url_meta":{"origin":9028,"position":4},"title":"Arabtec is on 'top of risks', says firm's chief","date":"March 22, 2017","format":false,"excerpt":"\r Hamish Tyrwhitt, the chief executive of Arabtec, which has about Dh6 billion worth of trade and other receivables owed to it, expects the company to be \"on top\" of its risks as the builder pursues outstanding payments and prepares to raise Dh1.5bn in a rights issue as it seeks\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16270,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/meydan-raises-funds-through-sukuk-and-term-loan\/","url_meta":{"origin":9028,"position":5},"title":"Meydan raises funds through sukuk and term loan","date":"June 12, 2016","format":false,"excerpt":"\r The Meydan Group has raised Dh1 billion in debt funding, which the company has said will help to improve its capital structure and provide cash for new projects.The company, which owns and operates Dubai's main racecourse and an adjoining hotel, raised the money through a Dh700 million sukuk and\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/9028"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=9028"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/9028\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=9028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=9028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=9028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}