GHV Infra Projects Limited disclosed that its wholly owned subsidiary, GHV Infra FZ-LLC, has initiated arbitration proceedings including an application for emergency interim relief against Rana Exim FZ-LLC before the Dubai International Arbitration Centre (DIAC).
The proceedings arise from disputes relating to the EPC Agreement dated October 6, 2025, for the development of the Erisha Smart Manufacturing Hub at RAKEZ, Ras Al Khaimah, UAE. The disputes primarily concern the refund of Earnest Money Deposit (EMD) and the invocation of Corporate Guarantees issued under the EPC Contract.
Key Developments
- Request for Emergency Arbitration was filed on October 19, 2026
- Emergency Arbitrator passed an Emergency Order dated November 03, 2026
- The order grants interim relief in favour of GHV Infra FZ-LLC by staying the invocation of Corporate Guarantees
- Rana Exim FZ-LLC has been restrained from:
- Making, renewing or repeating any demand under the two Corporate Guarantees
- Taking any steps to collect, enforce or realise payment under either Corporate Guarantee
- Receiving or retaining any payment under either Corporate Guarantee
Financial Implications
- The refund of EMD amounts to AED 11,242,746
- Other claims have been made by GHV Infra FZ-LLC before the Arbitral Tribunal under regular arbitration
- The Emergency Order is interim in nature and does not finally determine contractual rights and obligations
- Financial implications cannot be conclusively assessed at this stage and depend on the final outcome of arbitration proceedings
Status of Proceedings
- Regular arbitration proceedings have commenced with arbitration application filed on October 19, 2026
- The underlying substantive contractual claims remain open for adjudication before the Arbitral Tribunal
- The emergency order remains in effect pending determination of the arbitration or further order of the Emergency Arbitrator or arbitral tribunal