| Date: |
30/07/2026 |
| Name of listed company |
Al Mazaya Holding Co. K.S.C.P |
Automated Lawsuit number
Lawsuit Number |
1441/2023 Commercial (Dubai Court of First Instance) |
| Subject of the Lawsuit |
A subsidiary to Al Mazaya Holding Company in the Emirate of Dubai filed a lawsuit against a contracting company and its owners, subcontractors, and a consulting office and its owners (as a precautionary measure in order to avoid the Statute of Limitation related to filing a lawsuit), demanding to oblige them jointly to bear the budgeted costs of rectifying the defects and repairing some buildings in the Emirate of Dubai that they had previously developed for the benefit of the subsidiary, due to their responsibility for the development execution work and supervising the development execution of those buildings for the benefit of the subsidiary as some defects that require repairs had appeared according to the reports of relevant authorities in the Emirate of Dubai, where the subsidiary requests the following:
- Obliging the defendants, from the first to the seventh jointly to pay an amount of AED 82,022,600 (equivalent to approximately KD 6.9 million) and legal interest at the rate of 5% from the claim date till full settlement, which represents the estimated budget for the repair cost of the subject buildings.
- Obliging the defendants from the eighth to the eleventh jointly with the defendants from the first to the seventh to pay an amount of AED 23,200,000 (equivalent to approximately KD 1.9 million) and legal interest at the rate of 5% from the claim date till full settlement, which represents part of the main claim mentioned in the previous clause and includes the estimated budget for the repair cost of the subject buildings.
- Reserving the right to request compensation after assessing the damages and losses
- Obliging the defendants to pay the related fees, expenses, and attorney’s fees.
Subsequently, the subsidiary amended its requests in that lawsuit by claiming an additional AED 40,000,000 (equivalent to approximately KD 3.3 million) as punitive damages.
The subsidiary also filed a standby claim – in case of non-ruling for the budgeted costs – to request the ruling for the amounts actually incurred for the repair works during the full span of this lawsuit to avoid the possibility of rejecting the full claimed amount by the court as the full repair costs may not become fully due for payment before issuing the final verdict.
This lawsuit has been heard previously in front all levels of litigation (Court of First Instance, Court of Appeal, and Court of Cassation), and the related verdicts were duly disclosed at that time. Pursuant to the verdict issued by the Court of Cassation on 20/05/2026, the challenged verdict was revoked, and the case was returned back to the Court of First Instance for a retrial and reconsideration of its merits.
Accordingly, the current disclosure relates to the verdict issued by the Court of First Instance following the return of the case thereto in accordance with the verdict rendered by the Court of Cassation. |
| The Court Judgement / Verdict date |
30/07/2026 |
| The name of the Court / Court circuit that issued the Judgement / Verdict |
Dubai Court of First Instance |
| Parties of the Lawsuit |
Al Mazaya Real Estate FZ L.L.C (plaintiff)
against
Al Sarh Contracting Company and others (defendants) |
| The Judgment / Verdict in favor of |
Plaintiff - Al Mazaya Real Estate FZ L.L.C |
| Court of First Instance Judgment / Verdict |
The Court ruled in the presence of the defendants from the first to the fourth, the included parties from the second to the fourth, the heirs of the fifth defendant, and the defendants from the eighth to the last, and with respect to the remaining parties to be considered as present, as follows:
First: The Court accepted the joinder of Amal Daniel, Patrick Daniel, and Melanie Daniel (the heirs of the fifth defendant) as parties to the lawsuit as a matter of form.
Second: The Court accepted “in form” the joinder of both EForce Engineering Consultancy and Salem Rashid Salem Al-Khidr Al-Shamsi, in his capacity as the judicial liquidator of Al-Sarh Contracting LLC, the sixth defendant.
Third: The Court ordered the first and sixth defendant companies (the latter being represented by the included party in his capacity as the judicial liquidator) to jointly and severally pay the plaintiff the amount of AED 20,000,000 (Twenty Million Emirati Dirhams) as material and moral compensation for the material and moral damages sustained by the plaintiff, together with legal interest thereon at the rate of 5% per annum from the date this verdict becomes final until full payment.
Fourth: The Court ordered the included parties from the second to the fourth, and the heirs of the fifth defendant, to be liable, within the limits of the estate inherited from their deceased predecessor, for the adjudged amount stated in under Paragraph “Third” above, in the event that the assets of the first defendant company are insufficient to satisfy the judgment amount.
Fifth: With respect to the joinder of EForce Engineering Consultancy, the Court rejected its inclusion in the case and ordered the plaintiff to bear the costs thereof.
Sixth: The Court ordered the first and sixth defendants, jointly and severally, and, in the event that the assets of the first defendant company are insufficient, the defendants from the second to the fourth and the included parties (the heirs of the fifth defendant, within the limits of the estate inherited from their deceased predecessor), to bear the appropriate portion of the costs of the lawsuit and to pay the sum of AED 1,000 as legal fees. The Court further rejected all other claims and requests. |
| Court of Appeal Judgment / Verdict |
No court verdict has been issued |
| Court of Cassation Judgment / Verdict |
No court verdict has been issued |
| The expected financial impact on the company as a result of the Judgment / Verdict |
There is no current financial impact on the company till the final rulings by the court and actual execution of the related verdicts. |