More senior Arabtec execs said to have been sacked

Chief operating officer, head of risk and chief information officer reportedly among hundreds dismissed by Dubai construction giant

More senior executives from Dubai-based Arabtec Holding, including the chief operating officer, head of risk and chief information officer have reportedly been fired as part of a major staffing shake-up.

Bloomberg reported on Monday that COO Mark Andrews, Gordon Jack, the chief information officer, and David Doyle, the chief risk officer, have been dismissed following the departure of CEO Hasan Ismaik last week.

The company has also declined to comment on reports that hundreds of employees have been sacked in the past few days as shares in the company fell to their lowest since March.

Bloomberg cited two people with knowledge of the situation when reporting that Nabil Al Kindi, COO for the Gulf region and Shohidul Ahad-Choudhury, head of mergers and acquisitions have also left.

Ismaik, who abruptly resigned from the company last week, said on Thursday he had no plans to sell his 28.85 percent stake.

Ismaik left Arabtec's board on Wednesday, resigning as chief executive at the same time, and ending a tumultuous few weeks for the company in which its shares plunged and major shareholder Aabar Investments cut its stake. The selling dragged down the entire Dubai stock market.

On Monday, Arabtec fell 9.9 percent to close at AED3.46, down from a peak of AED7.40 on March 14. However the stock is still up 69 percent year-to-date.

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Posted by: Djamel Amalou

Arabtec business model cannot escape the reality business base on illusive prospect study income. In the same way Arabtec dispose enough engagement contract where clients cant withdraw them financial obligation. A new cycle begin to expect a brake even is underway .... stand back .

Its all about name to attract investor and more big the name is the more deep the fall is. A technics that we know pretty well in UAE. A repeated story over and over.

My advice dont even take a case to withdraw from your obligation since the court will take it easy. Just secure your agreement and free yourself from being jail to fail your obligation to Arabtec if you are a contractor or an off plan property buyer because they will drag you to hell.

No need to file for long holiday, take a break and hold on your paper because from outside thinks are much more clear to defend and secure your freedom.

Posted by: Crash!!!

The simple answer to the rapid reduction in the Arabtec share price is that the share built itself up to a 60 times PE ratio based on speculation and hopes of future earnings. What has happened in the last month is a total collapse of confidence in the company based on what has happened to its senior management layer. This has caused a crash in the price again based on speculation and worry now about future ability to deliver and win business. The guide price by some analysts on the Arabtec stock is about 1.8 Dirhams which would be a PE ratio of about 13 which is about normal.

Arabtec may have a long way more to fall but the issue now is contagion and the probability that it will bring the rest of the market with it - scary times for investors.....

Posted by: Abdalla

Seriously , What's going on with Arabtec ? , I am a shareholder and I demand a logical explanation, there must be a hidden agenda to all this firing .

Posted by: manea

very strange, where is the new acting CEO he should step and make the situation more clear to all shareholders. As shareholders lost more than 50% of their stock value in less than a month. or DFM should stop trading till the company explains what is happening.

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