Deyaar Development is in turnaround mode, again, and for shareholders, it is like deja vu.
In October 2008, just as the global financial crisis spread to Dubai, the property group hired a new management team.
The move came seven months after the company had become embroiled in a fraud investigation that saw Zack Shahin, the then-chief executive, being detained on allegations of corruption. He is still in prison while the case continues.
With Markus Giebel installed as the new chief executive, the "turnaround" team quickly embarked on a bold strategy to reduce the default rate of homebuyers, create a distressed assets fund to buy properties from struggling buyers and consolidate projects.
The plan started well, with Deyaar minimising the default rate to only about 5 per cent of its 5,000 customers.
Mr Giebel and his team also had plans to take the developer into new markets such as Lebanon and Saudi Arabia, as well as build retirement homes and affordable housing.
The fresh, transparent approach inspired confidence, leading some major international investors to commit Dh200 million (US$54.4m) towards Deyaar's Dh500m distressed property fund.
But the fund was put on hold at the end of last year when the investors lost confidence after the Dubai World conglomerate asked its creditors for a six-month standstill on its debts.
And yesterday, less than two years since his appointment, Mr Giebel left the company. The move was part of a management shake-up that is expected to see the departure of other senior executives.
Saeed al Qatami has replaced Mr Giebel in an acting capacity - and he has his work cut out for him.
"Coming up with a strategy is one thing but executing it is another," said Saud Masud, a property analyst with UBS.
Nomura Securities downgraded Deyaar yesterday from "neutral" to "reduce" with a price target of Dh50, down from Dh92, citing a host of negatives including its small market capitalisation status, foreign ownership restrictions and lack of clarity on strategy.
Deyaar's shares closed yesterday at 47 fils, down 0.62 per cent.
@Email:agiuffrida@thenational.ae
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
What are the main cyber security threats?
Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
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