Dubai-based contractor Drake & Scull International's former chief executive and a former employee have been ordered by a court to pay the company Dh151.9 million ($41.3 million) to compensate for damages incurred during their tenure.
The Dubai Court of Cassation issued a ruling that former chief executive Khaldoun Tabari and former company employee Saleh Muradweij are obliged to pay the sum as compensation for "material and moral damages" incurred by the company, Drake & Scull said in a statement to the Dubai Financial Market on Wednesday.
This is in addition to legal interest at the rate of 5 per cent from the date the judgment becomes final until full payment is made.
"Following the Court of Cassation’s rejection of the appeals, the judgment is now final, binding, and no longer subject to appeal," Drake & Scull said in the bourse filing.
"The company has already initiated enforcement procedures to recover the awarded amounts."
With this matter resolved, DSI is eager to focus its efforts on strengthening operations, pursuing new projects, and delivering value to its shareholders.
Drake & Scull statement
The contractor has previously secured attachments on assets belonging to the defendants, it said. Additionally, the Public Funds Prosecution – Abu Dhabi has imposed attachments on funds and assets belonging to Mr Tabari, Drake & Scull said.
The ruling "marks a turning point for the company," it said in a statement on Wednesday.
"With this matter resolved, DSI is eager to focus its efforts on strengthening operations, pursuing new projects, and delivering value to its shareholders."
Drake & Scull, which provides general contracting and engineering services, and undertakes projects in the oil and gas, and water treatment sectors, has a history in the region dating back to 1966 when it first set up base in Abu Dhabi.
Jordanian businessman Mr Tabari, who took a majority stake in the company in 1998, led it to public listing in 2008, offering 55 per cent of its shares in a deal that was 101 times oversubscribed.
The company was a preferred engineering and contracting partner for high-profile projects in the UAE and was among the most-traded stocks on the bourse.
However, the contractor fell on hard times during the three-year oil price slump in 2014, which heavily affected the property and construction sector in the region. The company declared heavy losses in 2015 and 2016, leading to Mr Tabari stepping down as chief executive in August 2016. Trading of Drake & Scull's shares was suspended in November 2018.
The company filed several cases against Mr Tabari and the previous management in 2009-2011, alleging that they falsely inflated asset prices before its IPO. While Mr Tabari said he was the subject of a “smear campaign” and blamed the company for a “clear lack of strategy”, Drake & Scull refuted his claims.
Drake & Scull resumed trading on the DFM in May 2024 after the company increased its share capital by Dh300 million and following the acceptance of the Dubai Courts of its restructuring plan that saw it write-off 90 per cent of its debt.
Drake & Scull wrote off Dh4.18 billion in financial and commercial debts and started the process of settling with other creditors after completing the requirements of its restructuring process in 2024. In November, it appointed Muin Al Saleh as its new chief executive, as it seeks to expand operations.
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
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Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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