Developer Meydan is to hold talks with Arabtec and WCT in a bid to resolve the long-running dispute over the contract to build the Meydan racecourse in Dubai.
Both sides have agreed to withdraw their claims against each other, which were going through a formal arbitration process at Dubai International Arbitration Centre. However, they have decided to halt the process to host out-of-court talks, which are set to begin shortly.
In a joint statement, Meydan CEO Saeed Humaid Al Tayer and Arabtec MD Hasan Abdulla Ismaik said: “We are determined to reach an amicable agreement over all the outstanding claims and counter-claims. 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.”
They added: “This is a very welcome initiative and we remain optimistic, confident and committed to reaching an amicable out-of-court settlement.”
Meydan launched a $952.8m (AED: 3.5bn) claim against Arabtec and Malaysian company WCT last year.
The contractors had formed a joint venture which was appointed to build the racecourse in September 2007. However, Meydan cancelled the contract 16 months later, alleging that the firms had failed to stick to an agreed construction timetable.
The joint venture company subsequently launched an arbitration claim for AED: 2.8bn ($762m) relating to the project. After Meydan launched its claim last year, Arabtec said that it did not intend to make any provisions against potential losses.
“Management believes, based on continuing legal opinion received, that the prospects of success in the arbitration and legal case are good and that no additional provisions for the dispute are required,” the company said.
