Markus Giebel has been replaced as the chief executive of Deyaar Development, Dubai's second-largest property developer, as part of a major management reshuffle that is expected to see the departure of other top executives.
Saeed al Qatami has been appointed the acting chief executive, Deyaar said in a statement. Mr al Qatami was formerly the company's president of business development.
"The appointment is part of an ongoing management restructuring being undertaken in line with the company's long-term strategic objectives," the statement said.
"Deyaar made this announcement following a resolution by the company's board of directors approving the appointment of al Qatami to this position, while also approving the dismissal of the previous chief executive officer, Markus Giebel, with immediate effect."
People familiar with the matter have said the changes could see the departure or resignation of other senior executives in the coming weeks.
The chief financial officer, Krishnamurthy Sundaresan declined to comment when asked if he had submitted his resignation.
"You need to be operationally efficient," Mr Sundaresan said. "We haven't figured out of all the changes yet."
The change of management at Deyaar comes after a tumultuous two years for the company.
In April 2008, it emerged that the then-chief executive, Zack Shahin, had been detained on charges of corruption.
That marked the first of a series of high-profile investigations in Dubai that led to more than a dozen other executives being jailed. Mr Shahin remains in custody while the case continues.
Just seven months later, at Cityscape Dubai in October 2008, Deyaar came back into the spotlight with a new logo and a management team led by Mr Giebel. Mr Sundaresan was hired in the same month.
Mr Giebel embarked on a strategy to reduce the default rate of homebuyers, create a distressed assets fund with investors to buy up properties from struggling buyers and consolidate projects.
Only about 5 per cent of Deyaar's 5,000 customers defaulted on their payments last year thanks in large part to its working with buyers on payment plans, reducing prices in some cases and cancelling some projects, the company said.
It also handed over eight projects last year, including The Citadel and Madison Residency, and plans to complete another six this year.
Still, the property downturn has taken its toll on the company. Deyaar reported profits of Dh30 million (US$8.16m) last year, a 95 per cent decline from the year before.
A proposed Dh500m distressed assets fund was postponed in February after several international investors pulled out.
Deyaar's shares have lost about 17 per cent this year.
"Sustained down cycles put a lot of pressure on the management team to deliver on their promises," said Saud Masud, an analyst at UBS in Dubai. "Coming up with a strategy is one thing but executing it is another."
Last June, Nasser al Shaikh resigned as the chairman of Deyaar Development after having been replaced as the director general of the Department of Finance a month earlier. Mr al Shaikh had overseen the hiring of Mr Giebel.
"They had lots of ideas but it doesn't seem as if they are moving very fast," said Nabil Ahmed, the head of research for the region at Deutsche Bank.
"It's where you have a strong management team but they don't have the flexibility to do what they want to do."
It is understood that the company is seeking to diversify its revenue stream using Singapore's CapitaLand as a possible growth model.
"They are into everything: property development; fund management; leasing; [Real Estate Investment Trusts]; property management," Mr Sundaresan said.
The next big challenge for Deyaar is what to do after next year when it would have delivered most of its projects and seen revenues drop sharply, said Chet Riley, an analyst at Nomura Securities in Dubai.
"We think the current management team has implemented a worthwhile strategy," he said. "Where we have concerns is the strategy [after] the Dubai development programme. We have no clear view or guidance from the company of how they are actually going to execute their overseas strategy, and this becomes a concern after 2011."
Mr al Qatami, who has been with Deyaar since 2007, previously held managerial positions at Dubai Islamic Bank and Standard Chartered Bank.
Deyaar's stock lost about 0.6 per cent yesterday before the company made its disclosure. The stock has fallen by about 17 per cent this year.
bhope@thenational.ae
agiuffrida@thenational.ae
Newcastle United 0 Tottenham Hotspur 2
Tottenham (Alli 61'), Davies (70')
Red card Jonjo Shelvey (Newcastle)
RESULT
Los Angeles Galaxy 2 Manchester United 5
Galaxy: Dos Santos (79', 88')
United: Rashford (2', 20'), Fellaini (26'), Mkhitaryan (67'), Martial (72')
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.”
Manchester City 4
Otamendi (52) Sterling (59) Stones (67) Brahim Diaz (81)
Real Madrid 1
Oscar (90)
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')
Red card: Rodrigo Bentancur (Juventus)
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
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Transmission: Single-speed automatic
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Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
UAE currency: the story behind the money in your pockets
Sweet%20Tooth
%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3EJim%20Mickle%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EChristian%20Convery%2C%20Nonso%20Anozie%2C%20Adeel%20Akhtar%2C%20Stefania%20LaVie%20Owen%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
RESULT
Manchester United 1 Brighton and Hove Albion 0
Man United: Dunk (66' og)
Man of the Match: Shane Duffy (Brighton)
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
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Transmission: 8-speed automatic
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5