DUBAI, United Arab Emirates (AP) — Emirati prosecutors said Sunday they launched a major investigation into Dubai-based real estate developer Union Properties, saying they would probe allegations the long-troubled firm committed fraud and other offenses while trying to claw its way out of debt.
Union Properties, known for building Dubai Motor City, did not respond to repeated requests for comment.
The announcement by prosecutors renewed questions about the wider stability of Dubai's boom-and-bust real estate market, which saw Union Properties pile on some $2 billion of debt during the city-state's financial crisis over a decade ago. The company had nearly $500 million in debt at the end of last year, according to their financial filings.
A statement carried by the state-run WAM news agency said the investigation involved allegations of the firm selling property at less than its real value and hiding the name of the beneficiary of the sal