Land handed to Chinese firm for luxury project despite corruption probe

Apr 8, 2026, 10:14 AM
HDC Managing Director Zuhair

HDC Managing Director Zuhair

A land plot near Hulhumale' Phase 2 Channel Park area has been handed over to China's Nantong Xinhua Construction Group for a luxury housing project despite an ongoing investigation by the Anti-Corruption Commission (ACC). 

Adhadhu has obtained a letter sent by the Housing Development Corporation (HDC) to the ACC. It stated that stopping the project would be a huge loss for the company and investors.

According to sources, the land for the project was handed over to the company just two days before the local council elections and referendum held on Saturday.

HDC Managing Director Zuhair could not be reached for comment.

Nantong Xinhua Construction Group had prepared all necessary documentations long before HDC announced for Expressions of Interest (EOI) for the project.

The public notary signed the documents for the project on December 7, 2025, eleven days before the announcement. The company then sent an email to HDC on December16 2025 expressing interest in the project. HDC opened for EOIs on December 18, 2025. 

The HDC gave a short deadline of only six days to apply for the project. The deadline expired on December 24, 2025. A total of nine companies applied, but six were disqualified for not submitting the documents within the short time frame.

Business experts say that it is not possible for an ordinary investor to prepare technical studies and financial models for such a large project in six days.

However, less than 24 hours after the bids were opened, the board meeting held on December 25 decided to award the project to Nantong Xinhua Construction Group. 

Under this project, an area of 1.3 million square feet will be provided from the Channel Park area. Nantong will hold a 70 percent stake in the joint venture with HDC to run the self-financed project.

In addition, the HDC board decided to approve a three-month framework agreement and to finalize the project design and CASR cost details during this period.

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