Nissan has won the case in which its erstwhile distributor Al Dahana FZCO brought various claims against it in the wake of their joint venture business in the Middle East, named Nissan Gulf FZCO was called off in 2019.
In 2008 Nissan entered into an agreement with Al Dahana to form a joint-venture called NGF to manage the distribution of vehicles in part of the Middle East. When the agreement ended in 2019, responsibility for these activities transferred to Nissan’s regional business unit in Dubai. Since then, Nissan has been in dispute with Al Dahana.
But Al Dahana challenged the action and made several claims against the principal, which have now been decided in favour of the Japanese company
Nissan has welcomed a judgement from the Dubai Court of Appeal ruling in its favour, following a long-running legal case brought by a former distribution partner.
On June 8th, the Dubai Court of Appeal issued a comprehensive judgement in favour of Nissan. This Dubai Court of Appeal judgement overturns an earlier Dubai Court of First Instance decision in favour of Al Dahana.
The Dubai Court of Appeal has now cancelled the earlier judgement of the Dubai Court of First Instance, and dismissed all of Al Dahana’s claims against Nissan.
Thierry Sabbagh, President, Nissan Saudi Arabia and Managing Director, Nissan Middle East FZE, said: “We welcome the judgement from the Dubai Court of Appeal, which means that Nissan has now been successful in defending a broad range of different claims from Al Dahana.
“Throughout this period we have been confident that Nissan has acted properly and now we can move forwards with the support of our employees, customers and valued partners in the region.
“The Middle East has strategic importance for Nissan, where nearly 30 years ago we were the first Japanese carmaker to establish a regional headquarters. Having celebrated the 70th anniversary of the Nissan Patrol at Expo 2020 Dubai last December as the official automotive partner, we’re extremely proud of our heritage, and of the essential part that Dubai will continue to play in Nissan’s success.”
Also published on Medium.