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The cracks are starting to show as the Chairman Dubai Properties–that is to merge with Emaar, the developer that oversaw the Burj Dubai project–was arrested today on suspicion of embezzlement.

Emaar, one of the most successful construction and holding companies in the Middle East, has seen a sharp drop in its share price since the property market worldwide was hit by financial crisis. With signs of the property market stabilizing, Emaar was hit again today because of the arrest of the chairman of Dubai Property—the company that Emaar is in the process of merging with.

The Chairman of Dubai Property, Mr. Hashim Al Dabal, was arrested on suspicion of embezzlement. “He is accused of abusing his position and earning millions in illegal profit”, said Dubai’s attorney general Mr. Essam Essa Al Humaidan speaking with 7days.

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The news of this arrest has led to a drop of 7.74 percentage points in Emaar’s shares. The merger reportedly is still going to happen, however, this incidents raises eye-brows about whether it is actually a secure merger or not. Investors believe “they are merging Emaar with good assets,” said Rabih Sultani, a fund manager at Duet Mena in Dubai. “Now we’re seeing issues of fraud and negligence from management. It might prompt people to rethink the merger,” he added.

This news is also interesting because of the fact that a statement released today by Emaar mentions that the last crane has come off of Burj Dubai, the tallest building in the world by all standards. Emaar is the main and proud developer of Burj Dubai. Emaar said last month that the Burj Dubai tower has accomplished a world record for the highest installation of an aluminium and glass façade. Keeping the tower façade clean will be the next engineering challenge, it said. “To guarantee that every corner of Burj Dubai sparkles, 18 window-washing units are built into the tower,” said the statement released to Emirates Business 24/7.

There are mixed feelings about Emaar right now. One the one hand, they are well on their way to delivering their project on time but on the other hand, if the merger deal falls through, they are risking losing all of their credibility in the market as the company is in enormous debt.

It remains to be seen whether the company will have enough credit to break another world record…that of guaranteeing that every corner of Burj Dubai sparkles.