Executives at Al Barakah, the property development company whose chief executive is sought by Dubai Police over allegedly bounced cheques worth more than Dh40 million (US$10.8m), have invited investors to drop all claims against the firm in return for shares in a new holding company.

The company sent the proposal to every investor and took out advertisements in newspapers yesterday inviting them to submit claims to Horwath MAK, an accountancy firm based in Dubai.

Tariq Minhaj, a spokesman for Al Barakah, said the company now planned to build long-delayed projects in partnership with a UK-based construction company.

But one investor, Maha Abdulwahab, said: 'This new company will be based in the British Virgin Islands. What is wrong with the UAE free zones?'

The National