Abu Dhabi royal scraps agreement for Pakistan real estate project

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Chairman of Abu Dhabi group, Sheikh Nahyan bin Mubarak al Nahyan and Bahria Town’s Malik Riaz sign the investment agreement in Abu Dhabi on February 15. —File Photo
Chairman of Abu Dhabi group, Sheikh Nahyan bin Mubarak al Nahyan and Bahria Town’s Malik Riaz signed the investment agreement in Abu Dhabi on February 15. —File Photo

ABU DHABI: Abu Dhabi royal Sheikh Nahyan bin Mubarak al-Nahyan has cancelled a tentative agreement with a Pakistani businessman that envisioned spending $45 billion on a real estate project in Karachi over 15 years - a cancellation that comes less than two weeks after the deal was signed.

No reason was given for the cancellation in a statement by the Abu Dhabi Group, which Sheikh Nahyan chairs.

The memorandum of understanding with Pakistani real estate tycoon Malik Riaz Hussain to build residential properties on an island had been touted in Pakistan as the country's biggest ever foreign investment.

The statement received by Reuters said no financial obligation or commitment had been assumed by the Sheikh, the conglomerate, or his privately owned construction firm Dhabi Contracting.

“It is...unfortunate that discussions between the parties could not reach any conclusion and the Memorandum of Understanding has been cancelled,” it said.

Abu Dhabi Group, which invests in emerging markets, has large investments in Pakistan including Bank Alfalah Ltd , Warid Telecom, Al Razi Healthcare and Wateen Telecom.

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