Wednesday, March 31, 2010

At last - changes at the top of Nakheel

I've posted in the past about the delay in removing people ultimately responsible for the excesses of Nakheel and for experienced executives from the established merchant families to be brought in to sort out the mess.

So I'm pleased to see today's news that both have happened.

A new board has been appointed for Nakheel with the prominent businessman Ali Rashid Lootah named as the new chairman to replace Sultan Bin Sulayem.

The CEO, Chris O'Donnell, has not been reappointed to the board and there are naturally rumours that a new CEO may be appointed.

The Financial Times says:

"The ruler's lieutenants behind Dubai's real estate boom-to-bust years are being gradually replaced by established names from the city's mercantile elite."

I've said before that it's a pity they weren't in charge from the beginning. I'm sure we would have had far less ego-driven, commercially unviable, too-rapid development.

This news comes days after the announcement of the debt restructuring plan, which in spite of too little detail being included seems to have met with general approval by creditors.

At long last the right moves are being made.

It's taken far too long, which has caused huge and unnecessary damage to Dubai's business reputation. Better late than never though, I suppose.

Gulf News.


Mazhar Mohad said...

What's far important is to have one person having one position in one organisation and have his time dedicated to that organisation alone and be his responsibility to its success.

A lot of Emaratis such as Bin Sulayem has been Chairman, CEO etc of several organisations. Managing all of them together would be a pain task and fine details would be easily missed out.

I am sure there are other smart individuals as well but let them handle one at a time. Time for a fashion change.

Seabee said...

Very true Mazhar. I'm amazed at how many important positions Sheikh Ahmed Bin Saeed has, for example. I don't know how he manages to do it all.