Direc, Aqaar wind up Ajman Oasis

Dubai Investment Real Estate Company (Direc), a subsidiary of Dubai Investments, and Aqaar Properties have liquidated their joint venture that was formed to build a multi-billion-dirham project in Ajman, citing "project not being feasible under current market conditions".

Dubai Investments, in the 2009 consolidated financial statement, said: During the current year, the group jointly with Aqaar has resolved to liquidate Ajman Oasis due to current economic situation in which the project is not considered feasible."

The land for the project valued at Dh1 billion (group's share Dh500 million) contributed by Aqaar has been returned back and the joint venture is in the process of being liquidated.

The land and cash contributions by Aqaar and Direc, respectively has been returned/refunded. The joint venture is currently under liquidation pending legal formalities, the company financial statement revealed.

Direc jointly with Aqaar incorporated Ajman Oasis for development, financing, construction and completion of an integrated real estate project.

In June 2008, Wam reported Ajman's plans to build a Dh13bn city stretched out over 3.72 sq km. The project, which will be located between Ajman and Sharjah in the Al Tallah area along Emirates Road, was expected to take 10 years to complete. Wam had also reported that Ajman Oasis has commenced work on the design phase. Aqaar CEO Rami Dabbas refused to comment.

He told Emirates Business in February that the company's immediate plan was to concentrate on completing Ajman One, a project consisting of 12 residential towers.

Dubai Investments reported a profit of Dh972m for the year ended December 31, 2009, as compared to Dh1.583bn in 2008.

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