Arabtec receives first Nakheel payment

Arabtec has confirmed that it has received the first payment of AED500,000 from Nakheel.

A spokeswoman for Arabtec confirmed the payment, but declined to comment further.

The payment comes after Nakheel said earlier this month that it has started paying its creditors, which are owed AED500,000 or less.

A spokeswoman for Dubai World’s property division said partners owed bigger amounts were ongoing. Creditors with outstanding sums worth more than AED500,00 have been offered a full repayment, comprising 40 per cent in cash and an Islamic bond issued by a Cayman Islands special purpose vehicle company.

Last week, The Dubai World Tribunal said it will establish expert panels if the number of claims brought against Dubai World and its subsidiaries dramatically increases.

Some 22,000 cases are rumoured to land with the special tribunal despite the tribunal only receiving two to date – one employment claim and another filed against Nakheel by Trinet Outdoor Advertising.

However, Mark Beer, DIFC Courts and Dubai World Tribunal registrar, said: “There is a lot of rumour in the market in terms of misinformation and there is a lot of discourse. There are currently two cases. Should there be a deluge of claims, in the decree no.11 of this year the law now says the tribunal can establish panels, for example panels to handle small claims, panels to handle quantum assessments, panels to deal with liability issues. So we now have a scalable solution.”