Burj Khalifa developer refutes speculation chairman is intending to leave the company
Emaar Properties, Dubai's largest listed real estate developer, said on Thursday it categorically denied rumours that its chairman Mohamed Alabbar intended to leave the company.
Alabbar is managing the company's business on a daily basis and is fully committed to it, Emaar said in a statement.
There was speculation about Alabbar's role after he participated at an investment conference in Egypt last week in a presentation about the construction of a new $45 billion capital city for the country.
Emaar subsequently said it was not involved in the project but that Capital City Partners, another firm co-founded by Alabbar, was engaged in it.
As a shareholder, I question this clear conflict of interest. Emaar have developments in Egypt therefore is it appropriate for the Chairman to be involved in another potentially competing company? The same can be said about several other interests in the UAE.
@Davie, this is not the only conflict... there is another Real Estate company owned by this Chairman who is having its Offices in AD and is clearly competing Emaar... thats how it works here... Another example is a Chairman of a Bank who is chairing another financial organisation.. which was founded for the benefit of all local Banks... How? Will he be interested in supporting other Banks while he is having his own? Thats a very questionable system and shouldn't be allowed, but it is what it is!
The other real estate company in AD is not owned by Al Abbar, he is only a board member.
"thats how it works here" the problem with that is that Emaar Malls are now dual listed on the London Stock Exchange and conflicts need to be declared and accepted.
@Davie, it will never be declared or accepted. Impossible. Just realize that the Central Bank had to beg the local banks to agree on their new rules for loans ... how is this? They need to beg? They need to kindly ask whether the local Banks would kindly agree to start getting monitored in their daily business? In other countries, there is no question whether a bank has to allow control about its daily business, its a law and it is mandatory to follow rules and regulations, but here? There is no control and there will never be and as long as it is working like this, no one will ever change that.
The German Lufthansa CEO said recently that "In Germany and Europe we believe in the law and whatever the law allows to be done shall be done, like it or notâ€¦if itâ€™s illegal it shall not be done!â€ This is how it is supposed to be, but we are in Middle East, so far far away from these kind of thoughts.