Dubai World Names Top Executives in Reorganization

Dubai World named two top executives as the United Arab Emirates sheikhdom’s government- owned holding company seeks to bolster management and shifts assets to streamline the business.

Jamal Majid Bin Thaniah will become group chief executive officer and Maryam Sharaf will be group chief operating officer, Dubai World said in a statement today. Both posts are newly created “as part of initiatives to streamline the group’s overall business operations in view of the global financial crisis.”

Dubai’s state-run investment and real-estate companies are seeking to cut expenses by putting projects on hold and reducing staff as the global recession cuts access to credit, making it harder to borrow to finance assets and properties.

The holding company, owned by the Dubai government, runs port operator DP World Ltd., real-estate developer Nakheel PJSC and the Jebel Ali Free Zone. Yesterday, it said it transferred hotel and real-estate assets, mainly in international markets, to its private-equity company Istithmar World PJSC as part of a reorganization. It also moved executives from Nakheel to Istithmar.

Dubai World, one of Dubai’s three main state-owned groups, had $59.3 billion in liabilities at the end of 2008 and is restructuring amid slowing economic growth in Dubai and a decline of nearly 50 percent in property prices. Nakheel is the developer building palm-tree shaped islands off the emirate’s coast. DP World is the world’s fourth-biggest port operator.

Bin Thaniah’s Role

Bin Thaniah was executive vice chairman of DP World. He headed an internal management task force reviewing the group’s business plans, Dubai World said.

Other group companies will report directly to Bin Thaniah, who will manage the “on-going business restructuring measures, execute investment strategy and be responsible for managing the holding company’s business,” DP World said in the statement.

Sharaf will keep her job as group chief financial officer until a successor is appointed. Abdul Wahid Al Ulama will become vice chairman of retail business, the company said.