A Kuwaiti sheik filed a case against UBS AG valued US$21.4 million in a Dubai court. The shiek alleged that the Swiss bank failed to pay him for helping it become a lead arranger on the US$9 billion asset sale by Zain, a Kuwaiti telecommunications operator.
The highlights of the case included the complexity of doing business in the Gulf. Such businesses include personal connections to high ranking officials or executives are often valued in deal engagements.
Sheik Meshal Jarah al-Sabah is a member of Kuwait's ruling family. He alleged that UBS recruited him with a verbal contract in July of 2009. The help sought after by UBS was to overthrow the French media conglomerate Vivendi's proposal to purchase the operations of Zain in about 15 African countries.
On the other hand, UBS AG denied the allegations. The financial firm also said that it did not ask the Kuwaiti sheik to provide any services for the bank. UBS added that he is not entitled to any fee.
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