A UAE prosecutor is investigating claims of financial irregularities by executives at Dubai-based developer Union Properties, according to state-run news agency Wam.
The Securities and Commodities Authority, the country's markets regulator, filed a complaint against the developer's chairman Khalifa Al Hammadi and some of the company's executives, Wam reported on Sunday.
The developer's shares dropped 9.67 per cent to 24 fils on the Dubai Financial Market at 1.15pm Dubai time.
The executives are accused of selling one of the company's property assets at a price below its real value and attempting to conceal the name of the beneficiary through the use of forged documents.
Other allegations include abuse of authority, fraud and damage to the interests of the company and its shareholders as a result of investments entered into outside and inside the UAE without proper studies being done, leading to financial losses for the company, Wam said.
The company's executives have also been accused of breaching accounting standards systems to hide the loss incurred by the company through the change in the classification of its investments, it said.
UAE Attorney General Hamad Al Shamsi said prosecutors had begun to carry out investigations under his direct supervision. He ordered the seizure of the property of some of the accused and barred them from leaving the country, Wam reported.
The legal status of the contracts, deals, and procedures initiated by the accused is being investigated and subjected to a technical examination by specialists, with the participation of the SCA and law enforcement authorities, he said.
Executives whose responsibility has been proven will be summoned, Wam reported.
Mr Al Shamsi issued directives "to deal firmly with anyone whoever attempts to defraud or tamper with the national economy", Wam said.
"The Public Prosecution will continue to inform the public in accordance with the course of the investigation and the interest of the investigation process," he said.
Under instructions from the SCA, Union Properties will add a motion to dismiss seven board members to the agenda of its General Assembly Meeting scheduled for October 26.
The members who would be dismissed are Mr Al Hammadi, Darwish Al Ketbi, Mohamad Al Fardan, Abdul Al Halabi, Fathi bin Grira, Dahi Al Mansouri and Klar Jorg, it said in a bourse filing on Sunday.
Shareholders will vote on this during the meeting, Union Properties said.
The DFM briefly suspended trading in Union Properties shares on Sunday due to an incoming disclosure from the company.
In its disclosure to the bourse, Union Properties did not refer to the federal investigation but said it was responding to news being circulated on social media platforms regarding the sale of an asset in 2020.
Asset sales are carried out in accordance with a methodology approved by the board of directors and its executive management by following "strict procedures in terms of the fair evaluation of its assets by reputable real estate valuers", it said.
Union Properties said that in March 2020 it sold a residential property to Amna Al Hammadi for Dh30 million and that she is not considered a "related party" based on company governance regulations issued by the SCA.
The building was sold "in light of the company's commitment to settle its debt towards its lenders and after studying the offers received by the company", Union Properties said.
The residential building was bought in 1997 for an amount of Dh36m, and was mortgaged to one of the company’s and one of its subsidiaries’ lenders since 2009, and registered in the books of the company for Dh49.5m, Union Properties said.
The SCA was not immediately available for comment when contacted on Sunday by The National.
In a separate bourse filing on Sunday, Union properties said that one of its subsidiaries filed arbitration claims seeking Dh3.5bn and the arbitral tribunal is expected to issue its decisions on a number of the claims in the second quarter of 2022. It did not identify the subsidiary or the reason for filing the claims.
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- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Need to know
When: October 17 until November 10
Cost: Entry is free but some events require prior registration
Where: Various locations including National Theatre (Abu Dhabi), Abu Dhabi Cultural Center, Zayed University Promenade, Beach Rotana (Abu Dhabi), Vox Cinemas at Yas Mall, Sharjah Youth Center
What: The Korea Festival will feature art exhibitions, a B-boy dance show, a mini K-pop concert, traditional dance and music performances, food tastings, a beauty seminar, and more.
For more information: www.koreafestivaluae.com
List of alleged parties
May 12, 2020: PM and his wife Carrie attend 'work meeting' with at least 17 staff
May 20, 2020: They attend 'bring your own booze party'
Nov 27, 2020: PM gives speech at leaving party for his staff
Dec 10, 2020: Staff party held by then-education secretary Gavin Williamson
Dec 13, 2020: PM and his wife throw a party
Dec 14, 2020: London mayoral candidate Shaun Bailey holds staff event at Conservative Party headquarters
Dec 15, 2020: PM takes part in a staff quiz
Dec 18, 2020: Downing Street Christmas party
Zidane's managerial achievements
La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017
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Fifa Club World Cup:
When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
