S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

Emirati prosecutors investigating Dubai's Union Properties

Sunday, October 24, 2021 | Jon Gambrell And Lujain Jo, Associated Press

A Union Properties construction project in Dubai Motor City unfinished for years is seen in Dubai, United Arab Emirates, Sunday, Oct. 24, 2021. Emirati prosecutors said Sunday they had launched a major investigation into Dubai-based real estate developer Union Properties, saying they would probe allegations that the long-troubled firm committed fraud and other offenses while trying to claw its way out of debt. (AP Photo/Jon Gambrell)

DUBAI, United Arab Emirates (AP) — Emirati prosecutors said Sunday they launched a major investigation into Dubai-based real estate developer Union Properties, saying they would probe allegations the long-troubled firm committed fraud and other offenses while trying to claw its way out of debt.

Union Properties, known for building Dubai Motor City, did not respond to repeated requests for comment.

The announcement by prosecutors renewed questions about the wider stability of Dubai's boom-and-bust real estate market, which saw Union Properties pile on some $2 billion of debt during the city-state's financial crisis over a decade ago. The company had nearly $500 million in debt at the end of last year, according to their financial filings.

A statement carried by the state-run WAM news agency said the investigation involved allegations of the firm selling property at less than its real value and hiding the name of the beneficiary of the sale, as well as forging documents and other violations.

“The investigation involves complaints lodged by the Securities and Commodities Authority on allegations of financial violations committed by Khalifa Hassan al-Hammadi, chairman of the board of directors of Union Properties, along with some of its officials,” the WAM statement said.

A stock market filing by Union Properties identified a March 2020 transaction in which Amna al-Hammadi purchased a property for 30 million dirhams ($8.1 million) that had been earlier valued at 49.5 million dirhams ($13.4 million). Previous filings on the London Stock Exchange identified Amna as Khalifa al-Hammadi's sister.

Neither Amna nor Khalifa al-Hammadi could be reach for comment. Union Properties’ filing sought to explain the sale by noting it came amid “the spread of the COVID-19 pandemic and its accompanying negative effects — and in light of the company’s commitment to settle its debt towards its lenders.”

Other filings on Sunday to the Dubai Financial Market showed shareholders wanted a vote later this week to possibly remove its board of directors. Separately, the company said one of its subsidiaries was involved in a lawsuit seeking nearly $1 billion, without elaborating.

Shares in Union Properties fell as much as over 9% in trading Sunday on the Dubai Financial Market before closing down 4.83% to 26 fils a share, or 7 cents.

The firm’s current shareholder structure wasn’t immediately clear, though a profile from the data firm Refinitiv showed its major investor as the Bluestone Fund.

Union Properties, like other firms, has struggled to come out of the shadow of Dubai’s 2009 financial crisis, when its property market collapsed. The city ultimately receive $20 billion in bailouts from Abu Dhabi, the Emirates’ oil-rich capital.

Union Properties abandoned the construction of a $460 million Formula One theme park in Motor City during the crisis, with its CEO at the time saying banks were no longer willing to lend money. Creditors, including the state-linked bank Emirates NBD, pursued the firm over loans of $2 billion. Even today, Emirates NBD advertises dusty buildings in Motor City as being available for sale or rent.

“Today's news was shocking, but we need to be clear that this is a good thing that there is a system, a system that adheres to punishing people who are responsible,” said Waleed al-Khatib, a managing partner at the Abu Dhabi-based trading firm Global For Shares and Bonds.

However, Dubai still faces looming debt payments that stem from its 2009 financial crisis. Dubai and its government-linked firms face a massive $30.6 billion bill coming by 2023, according to London-based Capital Economics. Dubai itself insists it is able to cover its debts and that state-linked firms should be considered separate from the sheikhdom's affairs.


Follow Jon Gambrell and Lujain Jo on Twitter at www.twitter.com/jongambrellAP and www.twitter.com/lujainjo.

7 Stocks That Would Make Great Graduation Gifts

Graduations are often seen as an ending. But they also have the potential to be an exciting new beginning. We may be biased, but we believe an ideal way to launch your graduate into the world is by helping them begin their investing education. And one way to help them do that is by having them invest in what they know.

This current crop of graduates has never lived in a world without things like iPhones, the internet, and they were the generation that likely had smartphones when they were in high school. This is a generation that has embraced and demanded relentless technological innovation. And they have rewarded the companies that have delivered.

Now it’s time to reward them, and maybe yourself as well. In this special presentation, we’ll take a look at seven stocks that would make ideal graduation gifts. Each of these stocks has a lesson(s) for graduates to take throughout their lives and careers.

View the "7 Stocks That Would Make Great Graduation Gifts".


Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.