Ali Rashid Lootah,who steered the state-owned developer through a $10.5 billion debt restructuring, left the company after 10 years in the role/Bloombergby Kudakwashe Muzoriwa
HE Mohammed Ibrahim Al Shaibani, the Chief Executive Officer of Investment Corporation of Dubai and Director General of The Ruler’s Court, Government of Dubai will take over as Chairman of the Dubai-based palm-shaped island developer Nakheel, replacing Ali Rashid Lootah.
Nakheel stated that Lootah’s resignation follows an invitation from HH Shaikh Ahmed bin Saeed Al Maktoum to assume a new position with the Dubai World Board.
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 Al Daboos and Issam Galadari, who will be appointed as directors to the board in addition to the current directors, Khalid bin Bakhit Al Falasi, Ibrahim Hussain Al Fardan and Adel Khalifa Al Shaer.
Lootah replaced Bin Sulayem as chairman in 2010.
Bloomberg reported that Nakheel was at the centre of Dubai’s debt crisis in 2009 that pushed the emirate to the brink of 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.
Dubai is taking steps to help the market recover. The city’s Land Department has been focusing on promoting Dubai’s real estate to investors abroad, mostly in the US, the UK as well as China, India and Russia. In September 2019, the government set up a committee to manage the supply and demand for properties and ensure that private developers operate in a fair environment.