Sheikh Ahmed replaces Bin Sulayem as chairman of Dubai World
Posted on 13 December 2010 with 1 comment from readers
Emirates Airline boss and chairman of the Dubai Supreme Fiscal Committee Sheikh Ahmed bin Saeed Al Maktoum has replaced long standing Dubai World chairman Sultan Ahmed bin Sulayem whose father once occupied the same position.
This is the biggest shake-up in the leadership of Dubai since the global financial crisis struck two years ago and comes as the emirate faces up to the challenge of refinancing more than $30 billion in maturing loans over the next two years.
Bank’s man
Sheikh Ahmed has the confidence of the banks following his successful handling of the $24.9 billion Dubai World debt rescheduling and the continued growth of Emirates Airline throughout the crisis.
Also appointed to the Dubai World board are Mohammed Al Shaibani, director general of the Ruler’s Court, Ahmed Humaid Al Tayer, DIFC governor and Emirates NBD chairman, Abdulrahman Al Saleh, director general of the Department of Finance, Hamad Buamim, director general of the Dubai Chamber of Commerce and Sun Yong Chang.
The National newspaper reported that this supervisory board is expected to appoint a new management board of professional international executives to run Dubai World, the conglomerate that includes the quoted DP World. Dubai World has some $4.4 billion in debt falling due over the next two years, and the newspaper speculated that the banks will demand at least one seat on the new management committee.
The banks clearly seem to be in the driving seat now at Dubai World. It is the next phase in the recovery of the emirate and this board level restructuring is very significant.
Nakheel’s fate
What is left out of this story so far is the fate of Nakheel, the troubled Dubai World property subsidiary. This is the most significant part of restructuring left in the group. Is this a name worth saving or one to wind up as the symbol of the construction boom that went bust?
Should Nakheel be broken up or kept as a single unit? Should some of its assets be sold? Should some projects be cancelled and monies returned to investors? These are the tough business choices that the new supervisory board will have to make, or will this be left to the new executive management to propose to the supervisory board?
Whatever happens the arrival of Sheikh Ahmed is good news for this giant conglomerate but the real changes have probably only just begun.
1 Comment posted by readers:
HRH Sheikh Ahmed is a safe pair of hands that uses proven fiscal methods and ‘out-of-the-box’ thinking to achieve exceptional results – YES I would humbly say this is a good decision. Nakheel successfully to cut all the meat and left only the fat during their downsizing of the organisation, I would expect very different results under the steady hand of HRH Sheikh Ahmed.
Ed Note: Yes a very good assessment. HRH also seems to gather the best brains around him and think in global rather than local terms.