By Gavin Gibbon
Al Rumaithi is replaced at the helm of UAE building giant by Waleed Ahmed Al Mokarrab Al Muhairi
Waleed Ahmed Al Mokarrab Al Muhairi has been appointed as the new chairman of Arabtec, replacing Mohammed Thani Murshed Al Rumaithi, who resigned from the role.
Al Muhairi currently serves as Mubadala’s deputy group CEO and CEO of the alternative investments & infrastructure platform.
Arabtec's board of directors thanked Al Rumaithi for "the efforts and contribution over the past years in successfully guiding Arabtec through a tough market environment and challenging period", the statement on Dubai Financial Market said.
"H.E Al Rumaithi was instrumental in stabilizing the business and building a sustainable strategy in the interest of Arabtec Group and its stakeholders," the statement added.
In February this year, Arabtec Holding reported a AED774 million ($211m) loss for 2019, a substantial drop from the AED256m ($70m) profit announced in 2018.
The losses were attributed to Arabtec Construction, while other core businesses, including Target (industrial), Arabtec Engineering Services (infrastructure) and EFECO (MEP) were said to be trading profitably.
Arabtec blamed the losses on tight liquidity in the real estate and construction sector; a slowing real estate sector resulting in limited new awards; the settlement and recoverability of claims, and estimated losses from investment in an associate company – the identity of the company was not revealed.
The construction giant also revealed that group chief financial officer, Adel Al Wahedi, had resigned. Wahedi had been in the role since July last year.
Boyd Merrett resigned as chief executive officer of Arabtec Construction in October last year. Merrett had been in the position since July 2017 and was replaced “until further notice” by Wail Farsakh, the former general manager of Dutco Balfour Beatty, who was only appointed group chief operating officer in September 2019.