Salam City 'lies' rejected by Umm Al Quwain

The Umm Al Quwain Government has rejected claims by developers of Al Salam City that the project was shelved because of a lack of water and electricity supplies, adding these were "mere lies that aim to impair the emirate's reputation".

The government reassured all beneficiaries that the law will preserve their rights and that it has started to take legal procedures against whoever attempted to manipulate the rights and interests of the beneficiaries. "The allegations by Tameer are merely an attempt to evade their contractual commitments, and here we should indicate that the government insists on dealing with the project in a positive manner that would guarantee the success of the project and rights of beneficiaries," the government said in a statement. Emirates Business reported the shelving of the massive project on May 22.

"The issue of water and electricity taken as an excuse by the other two partners to justify the delay in executing their contractual commitments are in their commitments under the company establishment contract," the statement said.

It said Article 117, Para 4, of the company stipulated that "the government is not responsible for supplying electric power, sanitary discharge, water, wire and wireless extensions…

"Umm Al Quwain Real Estate Development Company LLC was established by the Umm Al Quwain Government, Ahmed bin Sulaiman Al Rajhi and Tameer Company to build Al Salam City project under straightforward conditions agreed upon at the time. Accordingly the company enjoys an independent moral character and has an independent board, which is the company's only representative, which has the right to issue statements in its name.

"The government has sought from the first moment to activate the company and make the project a success since this would reflect on the emirate as a whole. However, the other two partners have been slack in executing their commitments, giving weak excuses that are alien to the truth," the statement said. "The real reason behind the delay in executing the project is slackness by the other partners in executing their contractual commitments," it pointed out.

"Umm Al Quwain Government would like to clarify that it aims to develop the emirate economically, and for this it has and still is seeking to attract serious companies to achieve its development targets," it added.