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Dh44m fraud charges for execs accused of illegal Dubai Waterfront sale

New charges have been brought against four men accused of trying to pocket Dh44 million by fraudulently selling a piece of Nakheel's Dubai Waterfront project.

Salam Al Amir
Salam Al Amir

September 20, 2012

  • English
  • Arabic

DUBAI // New charges have been brought against four men accused of trying to steal Dh44?million by fraudulently selling a piece of Nakheel's Dubai Waterfront project.

A revised charge-sheet handed to the Criminal Court by prosecutors today claimed that Nakheel’s former executive director, M?J?J, 43, the former operations manager M?R?L, 40, and the former legal adviser A?J?P, 44, plotted with A?R, a director at Prudentia Investments, to make an illegal Dh44m profit by selling a plot of land in the project’s City of Arabs. The former legal adviser and the Prudentia director are not in custody.

The four Australians were originally charged with causing a Dh142m loss to the Waterfront project, but after four years in the court system the case was returned to prosecution.

Prosecutors now say the four men conspired to sell a plot of land to the Sunland company in return for a commission of Dh44.1m.

They told Sunland the plot was worth Dh185m and had already been reserved by Prudentia for this amount. However, they said they would sell it to Sunland for Dh120m and that only a 5 per cent, rather than 15 per cent, upfront payment would be required if Sunland paid them a commission of Dh44.1m.

Prosecutors claim the former Nakheel operations manager undervalued the land’s worth by Dh60 per square foot and that the former executive director approved his evaluation. The legal adviser prepared the contracts while the Prudentia director acted as their representative in selling the plot to Sunland. The executive director’s share from the deal was allegedly Dh22.1m.

Chief Prosecutor Khaled Al Zarouni accused the four men in the new charge sheet of swindling Dh44.1 million from Sunland’s manager D?B.

The three Nakheel executives were also charged with abusing public office as well as using Nakheel’s confidential information for their own benefit.

The case was adjourned to October 18 while the defence considers the revised charges.

salamir@thenational.ae

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Longreads
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Electric scooters: some rules to remember
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  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
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