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Tue 30 Mar 2010 12:34 PM

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Bin Sulayem replaced as Nakheel chairman

Ali Rashid Ahmed Lootah new chairman, replaces Sultan Ahmed bin Sulayem.

Bin Sulayem replaced as Nakheel chairman
DUBAI DEVELOPER: Nakheel has appointed a new board of directors, headed by Ali Lootah. (Getty Images)

Dubai swept out the board of indebted property firm Nakheel and replaced its high profile chairman on Tuesday, in the wake of parent company Dubai World's $9.5 billion rescue plan.

Nakheel, builder of man-made islands in the shape of palms and a map of the world, will get a new board and chairman as the developer pushes ahead with projects.

Ali Rashid Ahmed Lootah was appointed chairman, replacing Sultan Ahmed bin Sulayem who is also chairman of Dubai World and a major name in Dubai's corporate landscape.

Lootah is listed as a vice-chairman of Dubai's Mashreq Bank on the lender's website.

The changes come less than a week after Dubai launched plans to restructure $26 billion in Dubai World debt.

"They have done the financial restructuring and now it's time for the administrative restructuring, so it's a natural progression," said Mohammed Yasin, chief executive at Shuaa Securities. "Without changes to management, the restructuring would have been half done.

"The challenges are still big for Nakheel but putting new money after bad money does not ensure success. It's the management that ensures success."

Nakheel claims to be the largest property firm in the Middle East and was the unit within Dubai's dense constellation of government-related entities that threatened to scupper over six years of rapid expansion that thrust Dubai on the world stage.

The Dubai government said in a statement the new board would help prioritise property projects, many of which have been put on hold since Dubai's boom turned to bust. (Reuters)

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MM 10 years ago

It's high time that each person is given ONE chairman/ceo position. And ask them to concentrate on that job and make it successful. It seems a common thing here where one person is chairman or ceo in several million (i mean tens) companies.