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Leviev's Dubai stores controversial

May 02, 2008

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Dubai, United Arab Emirates—Billionaire diamantaire Lev Leviev's plan to open two stores in Dubai, United Arab Emirates, is stirring up controversy in the Middle Eastern nation.

On April 14, Leviev issued a press release announcing the opening of a retail store in the Burj Dubai Mall, which was touted as the Leviev Dubai flagship, and a mini-boutique in the lobby of the new Atlantis Hotel on Jumeirah Palm Island.

Dubai's Levant Jewelers has been carrying Leviev diamonds since March, and the planned store openings were "the next step in the evolution of our brand," according to the press release.

However, on April 30, a story appeared in the Gulf News stating that Leviev does not have a trade license to operate in Dubai.

According to the newspaper, the Leviev store was to operate through Leviev's agent in Dubai, Arif Bin Khadra.

But the newspaper quotes a government official as saying that Israeli citizens are not allowed to operate in Dubai, including through non-Israeli partners.

"There are no loopholes," Ali Ebrahim, deputy director general for executive affairs in Dubai, told Gulf News. "We check backgrounds of businesses that apply."

However, a statement from Leviev given to National Jeweler states that Bin Khadra has signed the leases to operate the stores, and the mall and the Atlantis hotel are still under construction.

All retail tenants are expected to start fixturing their stores soon, with opening slated for the end of August, according to Leviev.

This is not the first time a Leviev store has been at the center of controversy.

Activist group Adalah-NY held multiple protests outside Leviev's Madison Avenue boutique, calling for consumers to boycott the store because of Leviev's alleged developments on Palestinian land and real estate dealings in New York.
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