Font Size

- Aa +

Tue 21 Jan 2020 12:54 PM

Font Size

- Aa +

Dubai wealth fund CEO to replace Nakheel chairman

Nakheel confirmed that Ali Lootah will step down after 10 years in the role

Dubai wealth fund CEO to replace Nakheel chairman

Mohammed Al Shaibani is one of four new board members, which also include former Nakheel chairman Sultan bin Sulayem, Khalifa AlDaboos, and Issam Galadari.

Top government official Mohammed Al Shaibani will take over as chairman of the Dubai-based palm-shaped island developer Nakheel, replacing Ali Lootah.

Al Shaibani, who is also chief executive officer of Investment Corp of Dubai and director general of the city’s ruler’s court, will take over after Lootah resigned, Nakheel said in a statement.

Lootah, who steered the state-owned developer through a $10.5 billion debt restructuring, left the company after 10 years in the role.

Al Shaibani is one of four new board members, which also include former Nakheel chairman Sultan bin Sulayem, Khalifa AlDaboos, and Issam Galadari, according to the statement. Lootah replaced Bin Sulayem as chairman in 2010.

Nakheel was at the centre of Dubai’s debt crisis in 2009 that pushed the emirate to the brink of a default. After receiving support from the government, it now has billions of dirhams of projects and infrastructure development underway.

Still, Nakheel is among developers coming under pressure as Dubai’s property market’s long decline since a peak in October 2014 defies all predictions of a rebound. The company in March dismissed about 300 employees as part of its plans to consolidate its operations, people with knowledge of the matter said at the time.

Dubai is taking steps to help the market recover. In September, the government set up a committee to manage the supply and demand of properties and ensure that private developers operate in fair environment. The city’s Land Department has been focusing on promoting Dubai’s real estate to investors abroad, mostly in the US, UK, China, India and Russia.

Nakheel reported a profit of 4.38 billion dirhams ($1.2 billion) in 2018, down from 5.67 billion a year earlier.

For all the latest real estate 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.