ft.com

Dubai, Dec 11: Dubai's relationship with Hollywood is set to come under strain after a potentially damaging lawsuit was filed in Los Angeles against the Dubai International Film Festival's chief executive.

The Dubai festival has become one of the most important in the global film industry's calendar, bringing together top executives from the Middle East, Europe, Asia and the US. This year's event, the fourth, which opened on Sunday, has attracted high-calibre stars, including George Clooney.

But a lawsuit was yesterday filed by Neil Stephenson, a Canadian who founded and ran the event untilthis year. He is seeking up to $5m (£2.4m) in damages after being fired as chief executive.

In the suit, seen by the Financial Times, he alleges that Abdulhamid Juma, who replaced him as chief executive, orchestrated a campaign to marginalise him, damage his reputation and oust him from the post. He claims he suffered "malicious" conduct, alleging that Mr Juma tried to discredit him in the Arab press by characterising him as a -"racist" and "Arab hater".

Mr Juma denies the charges. "DIFF helped Mr Stephenson establish himself in an industry new to him, and his attitude towards the organisation that nurtured him is in itself a clear indication of the reasons we felt it best to end our relationship with him," he told the FT.

The suit comes as Hollywood looks to strengthen its ties with the Arab world.

Warner Brothers, Time Warner's film and television division, recently struck a multibillion-dollar partnership to develop a media and entertainment hub in the United Arab Emirates.