Deyaar CEO detained, faces investigation

UNDER INVESTIGATION: Deyaar CEO Zack Shahin pictured in March last year. (ITP Images)

The CEO of Deyaar, Dubai's second-largest property developer by market value, has been detained and is under investigation for alleged financial irregularities, the company and Dubai authorities said.

Deyaar said in a statement on Thursday that Chief Executive Zack Shahin had resigned, without giving a reason.

"He's been detained," Deyaar Chairman Nasser Al-Shaikh told newswire Reuters on Thursday. "There is an investigation by the Public Prosecution... he did something he was not a supposed to do."

An official at the Dubai Public Prosecution confirmed Shahin had been detained and was under investigation.

Al-Shaikh would not be more specific about the allegations saying only that they are "financial" in nature.

"From our side we saw a few things that raised our concern and we are now going through the legal system for the benefit of our company and our shareholders," Al-Shaikh said.

"Whatever is going on right now, it will not have any real impact on Deyaar profitability," Al-Shaikh said.

Shares of Deyaar were down 2.13% at 0826 GMT.

The company named Adnan Tareen, head of finance, as acting CEO. Shahin could not immediately be reached for comment on his mobile phone. (Reuters)

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