Tihama receives favorable ruling on AED 5 mln compensation for UAE affiliate

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. said that Dubai Courts of First Instance, on Nov. 16, issued a preliminary ruling on ordering Nasser bin Saleh Al Sarami to pay the company AED 3.83 million, in addition to the legal interest of 5% from the date of the legal claim until full payment. 

The ruling also ordered Kanaen General Trading Co. to pay Tihama  AED 1.22 million, in addition to 5% legal interest from the date of legal claim until full payment, Tihama said in a bourse statement. In addition, each defendant was ordered to pay their application fees and AED 500 in attorneys’ fees.  

Tihama earlier filed a lawsuit against Al Sarami to get compensation for the damages he caused while managing its associate, Tihama Global Co. in Dubai in his capacity as General Manager and board member of Tihama Global.  

It also moved the court to order Kanaen to pay Tihama AED 1.22 million, which it committed to repay to finance the operational activity of Tihama Global Free Zone Co., according to the contract signed between the two parties.  

If a final judgment is issued in favor of Tihama, the impact will be positive on the company, as it previously recorded the share of those losses in the previous fiscal years, the statement added.  

There are no substantial legal, regulatory, or operational risks for the company as a direct impact of the delivered ruling.