After years of legal hurdles, allegations, and uncertainty, one of Karachi’s most ambitious real estate developments — the Arkadians — is finally set to move forward. Situated in the heart of DHA Phase VIII, facing the Golf Club and Defence Creek, the multi-billion-rupee project has been stalled by courtroom battles since 2013.
For over 10 years the case against this real estate development has tackled one hurdle after another. It has now finally received a clean chit from the Sindh High Court, and its owner, businessman and billionaire broker Aqeel Karim Dhedhi (AKD), has declared that construction will now be “in full swing.”
The landmark decision not only paves the way for the Arkadians but also underscores the complexity of Karachi’s real estate landscape, where investors’ trust is often shaken by stalled mega-projects and prolonged litigation. It also points towards some of Karachi’s most persistent problems: shrinking amenities, a complete lack of urban planning, clueless local government, and powerful real estate developers and business tycoons that can tie up land and investments to score points against their rivals.
What is the purpose of this land?
The more than decade long controversy surrounding the Arkadians project has to do with 43 acres of land that belongs to the Defence Housing Authority in Karachi.
The Arkadians project, spread across 43 acres of premium land in DHA Phase VIII, was envisioned as a state-of-the-art high-rise residential and commercial complex, comprising 13 towers, office enclaves, and utility spaces. Its prime location by the Defence Creek and Golf Club made it a flagship addition to DHA’s long-term coastal development masterplan.
As soon as construction began in 2012, the project faced opposition. In 2013, Zahidullah Khan, a resident of DHA Phase-II, filed a petition in the Sindh High Court claiming that the Arkadians was being built on an amenity plot. According to him, the site had originally been allocated for a park, graveyard, schools, and a sewerage treatment plant. Most cities in Pakistan and private societies have masterplans. All development is supposed to take place according to this masterplan with specific areas set out for specific purposes. While these plans are largely ignored, the courts can be compelled to act against any violation of these plans.
In Karachi, the issue is particularly sensitive. Decades of unplanned urbanization have left Karachi without any public amenities to speak of. This argument became the core of the opposition against Arkadians.
After the legal battle
The legal battle that followed has lasted more than a decade. Oftentimes the fate of projects can get tied up for a long time in courts leaving development stalled. The Arkadians is not the first such project. Perhaps no single development tells this story better than the monstrosity called Bahria Icon Tower that looms over Karachi uninhabited. Many thought the Arkadian would face a similar fate. The complications of the legal battle are long and winding, but a quick summary is useful in understanding how it ended up taking so long.
The court has noted that the documents produced by the complainants were either fake or outdated DHA records. Several times, SHC judges highlighted in their orders that the petitioner was absent despite repeated summons, undermining the credibility of his case. In its defense, the DHA categorically denied that the land was an amenity plot. DHA lawyers argued that:
In the 1989 master plan, the site was tentatively marked for future use. In the 1992 plan, it was provisionally earmarked for projects called “Creek Views” and “Creek Terrace.” Finally, in the 2007 master plan, the site was approved for the Arkadians project, clearing all ambiguity.
The court agreed. In its ruling, SHC declared: “It is not an amenity plot.”
But the case dragging on for so long was not without consequence. “From the beginning, it was clear that the petitioner only wanted a stay order,” Dhedhi said in conversation with Profit. “But I stood firm. I had invested billions of rupees of my own money. This is my blood. How could I let it fail?”
Initially, in 2012, Dhedhi invested Rs 6 billion of his personal wealth to construct two out of thirteen towers. He later revealed that the underground construction for four more towers had already been completed and would be constructed soon.
But over the past 12 years, the cost of construction doubled — in some cases tripled. Accordingly, the price of each residential unit also rose threefold. What was once considered affordable luxury has now shifted firmly into the premium category.
Still, with court orders now clearing all hurdles, Dhedhi insists that investor concerns will be addressed. “Unlike Creek Marina, which was built on customer advances, Arkadians is financed with equity from my own pocket,” he said. “That is why it will not fail.”
DHA’s shattered coastal vision
The Arkadians is not an isolated project. It forms part of DHA’s broader plan to transform Karachi’s coastline into a modern high-rise corridor with international-standard residential and commercial spaces. Alongside Arkadian, two other mega projects — Creek Marina and Emaar Crescent Bay — were launched in DHA Phase VIII
Much like Arkadians, these two coastal projects have also been the subject of controversy and delays. That is one of the reasons why Akeel Karim Dhedi is so strongly reiterating that the project will go full steam ahead, because all of these projects seem to be mired in problems. While Arkadians seems to be back on track, the other two still have many problems surrounding them.
Creek Marina, for example, is a stalemate that has lasted the better part of two decades. Launched in 2006 Creek Marina was envisioned as an upscale waterfront project comprising eight luxury towers. It was being developed by Creek Marina Pvt Ltd, a joint venture with Singapore-based Meinhardt Group.
However, disputes soon erupted between DHA and the developer over design approvals, delays, and financial transparency. Investors who had paid millions of rupee in advance were left stranded as construction stalled. Multiple court cases ensued, with SHC at one point observing that the developer had failed to deliver despite “repeated opportunities.”
To this day, Creek Marina remains a symbol of broken investor confidence in Karachi’s real estate market.
In contrast, Emaar Pakistan’s Crescent Bay has seen more visible progress. The Dubai-based real estate giant began work on Crescent Bay with ambitious plans for multiple towers, a marina, and commercial centers.
While some towers have been completed, the project has not been free of hurdles. Legal disputes with DHA, environmental concerns over land reclamation, and local opposition regarding public access to beaches have slowed its pace. Still, unlike Creek Marina, Crescent Bay is alive, with several residential towers already delivered and others under construction.
Investor Sentiment: A Double-Edged Sword
The troubled histories of Creek Marina and Crescent Bay have naturally left investors cautious. Many have millions of rupees tied up in stalled projects, breeding skepticism about new launches.
But Dhedhi is confident that Arkadians’ is more resilient because it has a different financing model. By this we mean that rather than relying on advance payments and bookings, his own personal equity is holding the project together. “Other projects took money from customers and still failed,” he says. “Arkadians is different. I have already put billions of rupees in. That is the guarantee.”
Real estate analysts note that this could indeed be a key differentiator. In a market often driven by speculative booking, where projects collapse once investor confidence dips, a project funded upfront by the developer carries stronger chances of survival.
Karachi’s real estate market is both lucrative and perilous. On one hand, the city of over 20 million desperately needs modern housing solutions. Demand for luxury apartments and commercial space is rising, particularly in DHA, Clifton, and Bahria Town. On the other hand, legal disputes, land title ambiguities, and governance challenges create frequent bottlenecks.
The Arkadians case illustrates this duality: a promising project tied up for years due to a legal challenge that ultimately lacked evidence. Investors, policymakers, and developers all see this as a lesson.
For DHA, the case strengthens its stance as Karachi’s premier urban developer with a long-term vision. By demonstrating that the Arkadians site was always earmarked for development, DHA defended both its authority and credibility.
A Turning Point
With the Sindh High Court’s recent dismissal of petitions, the Arkadians is finally free to proceed. Construction, which continued at a slower pace during litigation, is now expected to accelerate.
The project’s completion would mark not just the success of one developer but also a boost to investor confidence in Karachi’s troubled real estate sector. It could also pressure DHA and other developers to resolve outstanding disputes over Creek Marina and Crescent Bay.
For Aqeel Dhedhi, the court clearance is a personal vindication. “We have built over 100 buildings in Karachi — Karim Shopping Centre, Karim Plaza, Qasr-e-Yasin. Arkadians will join that legacy,” he said.
As cranes return to the site and workers prepare to scale new towers, Karachi’s skyline may finally welcome the Arkadians. The shift comes at a time when the AKD Group is already looking to expand.
Recently, AKD Group Holdings (Private) Limited, formerly known as Aqeel Karim Dhedhi Securities (Private) Limited, has recently acquired a significant 27.95 per cent stake in Pakistan Services Limited (PSL), the operator of Pearl Continental Hotels, for Rs6.36 billion.
Aqeel Dhedhi, apart from his real estate ventures, is also part of a consortium aiming to launch a new airline, Air Karachi. The project has been in the pipeline for some time and is now awaiting final approval from the Civil Aviation Authorities before its official launch.
Air Karachi is a new Pakistani airline seeking a Regular Public Transport (RPT) license from the CAA to begin domestic and international flights. The airline is backed by local investors including Arif Habib and others and registered with the Securities and Exchange Commission of Pakistan (SECP). They plan to offer both passenger and cargo services, with initial plans to operate with three leased aircraft.
Air Karachi is a new venture in Pakistan’s aviation sector, with investors announcing an initial seed funding of Rs 5 billion. Air Karachi intends to start with domestic flights and expand to international routes in the future. The airline plans to begin operations with a fleet of three leased aircraft.
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