Khaldoun Tabari, the longstanding chief executive of Drake & Scull International (DSI), has resigned from his role, the company has announced.
He will be succeeded by Wael Allan, DSI’s chief operating officer, as part of what the firm described as a six-month transition process.
Tabari will remain as vice chairman, a member of the board and a member of the executive committee at publicly listed DSI, one of Dubai’s biggest contractors.
He is also a major shareholder in DSI, having bought a majority stake in the mechanical, electrical and plumbing specialist in 1998.
“I believe that our fundamentals remain robust and our clients and partners continue to value our experience and pioneering innovations in our key markets,” Tabari said, in a bourse statement.
The news followed an announcement in August that DSI was in the process of changing its group and leadership structure following a tough period for the regional contracting industry, which is suffering due to reduced government spending as a result of the low oil price.
In August, DSI reported a $62 million loss in the second quarter, due to what the company referred to as “project cancellations, additional one-off provisions and adjustments”.
The loss was in comparison to a $1.6 million profit in the same period a year earlier, and a $2.7 million profit in the first quarter of this year.
Revenue fell by 38 percent year on year to $219 million, and by 22 percent quarter on quarter.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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