Dubai’s Arabtec Says To Protect Shareholders After CEO Quits

Major Dubai construction firm Arabtec on Thursday said its board had accepted the resignation of chief executive Hasan Ismaik and would protect the rights of all shareholders.

The brief statement to the Dubai bourse did not comment on the company’s strategy after Ismaik’s departure or what was likely to happen to his 28.85 per cent stake in the firm.

Ismaik resigned suddenly on Wednesday after a tumultuous six weeks during which Arabtec’s share price plunged as much as 50 per cent and a major backer of the firm, Abu Dhabi state fund Aabar Investments, cut its shareholding to 18.85 per cent from 21.57 per cent.

In its statement on Thursday, Arabtec said Ismaik was resigning from his posts of CEO, managing director and board member because of his “personal work and investment preoccupations”. It thanked him for his contribution to the company.

It also confirmed the appointment of Mohamed Al Fahim, a board member from Abu Dhabi’s state-owned International Petroleum Investment Co (IPIC), the parent of Aabar, as Arabtec’s acting CEO for an unspecified “temporary period”.

Mohamed Abdulla Ahmed Saif Al Suwaidi was appointed as a new independent board member to replace Ismaik in that role.

Arabtec said its board “expressed its positive aspirations for a bright future and continuing to make more achievements, which aim to protect the rights of shareholders and to maintain and achieve the best interests of the company and its shareholders and investors.”