New Chief for Nakheel

The Government of Dubai on Tuesday named Ali Rashid Lootah to head the revamped board of directors at property giant Nakheel. As the new chairman of Nakheel, which has been separated from Dubai World in a recent restructuring, Lootah replaces Sultan Ahmed bin Sulayem, who remains as chairman of the parent company. The latest shake-up comes days after Dubai government announced plans to pump $9.5 billion into Dubai World and Nakheel as part of a proposal to creditors to rollover $ 23.5 billion of debt. Lootah is the vice chairman of Mashreq Bank, Dubai’s second-largest listed lender by market value.The Supreme Committee supervising Dubai World and the establishments affiliated to the conglomerate made the announcement about the Nakheel board that includes Khalid Mohammad Salim Bakheit, Khalil Eisa Ahmad Awad, Adel Khalifa Al Shaer, and Ebrahim Hussain Al Fardan. Nakheel’s chief executive officer, Chris O’Donnell, retains his position. “The board will work on strengthening Nakheel’s capabilities in line with the proposed restructuring plan that was announced,” a statement from the Media Office of Dubai’s Ruler said on Tuesday.

“We welcome the new Nakheel board, which will work on the operational level, and will give it our full support,” bin Sulayem, who launched Nakheel in 2001, said in a separate statement e-mailed to Khaleej Times. “The board of directors will immediately start working on enhancing Nakheel’s abilities to implement the proposed restructuring plan unveiled last Friday. It will also ensure Nakheel’s ability to reach a quick and balanced recovery, to return to activity, and to regain its position and role as an important component of the national economy,” the statement said. “The new board of directors will carry out a number of primary projects that will be identified according to the priorities of the company’s work and carry out its different obligations towards all parties.” Dubai World comprises 10 firms including Nakheel and the world’s third-largest ports operator, DP World. The restructuring plan for Dubai World and Nakheel offers creditors full repayment on the principal of their outstanding loans over a five to eight year period through the issuance of new debt. The plan calls for restructuring of $23.5 billion of the debts, which include $14.2 billion to creditors other than the government.