Court drops case against Saudi family businesses
Courts in both New York and the Cayman Islands have dismissed lawsuits related to the dispute between family-owned Saudi Arabian conglomerates Saad Group and Ahamad Hamad Algosaibi and Brothers.
The New York Supreme Court said the case, in which AHAB accuses the Saad Group's billionaire owned of fraud, should be dismissed on the grounds that the US was not the appropriate forum for the trial to take place. The judge in the case said either the United Arab Emirates or Saudi Arabia were "more appropriate forums for determination of the primary actions."
The decision followed a judgment in the Cayman Islands, which ordered a temporary stay of legal action for the same reasons.
This decision is a positive one for Saad Group, which had argued the US was not a convenient or appropriate venue for the trial. In a statement the group said: "As we have said all along, Saudi Arabia is the correct forum for the principal issues in this dispute to be resolved. We therefore welcome the Court's judgment."
AHAB filed the case against second-generation Saad Group and its billionaire owned Maan Al Sanea last July, in which it accuses Al Sanea (pictured) of having "misappropriated approximately $10 billion as a result of his frauds." (Continue reading here) Al Sanea strongly denies the claims.
Both companies are facing huge financial difficulties and are believed to own regional and international banks up to $20 billion.
Maan Al Sanea was ranked the 62nd-richest person in the world by Forbes in March 2009, with a personal fortune of $7 billion. His wealth is built on local property enterprises and construction companies, sectors that took a hit during the recent global slowdown.
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