Dubai World gets new head amid debts

Dubai's ruler has replaced the longtime head of Dubai World with his close aide and uncle as the debt-laden conglomerate works to retool its business.
Sheik Ahmed bin Saeed Al Maktoum was named chairman of the sprawling conglomerate, whose holdings include seaports, high-end retailer Barneys New York and a stake in Las Vegas casino operator MGM Mirage, in a decree carried last evening by state news agency WAM.
The order reshuffled the rest of the company's board too, giving seats to top lieutenants of Dubai's ruler who are charged with cleaning up the emirate's financial troubles.
Among them are Mohammed al-Shaibani, director of the Ruler's Court, the seat of executive power in the emirate, and Ahmed Humaid al-Tayer, who heads the Dubai International Financial Center banking hub.
Sheik Ahmed replaces as chairman Sultan Ahmed bin Sulayem, who spearheaded Dubai World's supercharged growth but also oversaw the accumulation of what turned out to be unmanageable levels of debt.
Sheik Ahmed holds multiple roles in Dubai. He is best known as the chairman and CEO of Emirates, the city-state's rapidly expanding international airline, and is president of Dubai's civil aviation department. He also chairs a government committee set up to oversee Dubai World in the wake of the emirate's financial crisis.
Dubai World is at the center of the emirate's financial troubles, which erupted late last year when the conglomerate called for new terms on billions of dollars of debt it owed. The surprise announcement and the uncertainty that followed rattled markets the world over.
The company has taken steps since to get its finances in order. It won full support from creditors for its $24.9 billion debt restructuring in October following months of negotiations.
Its subsidiary Nakheel, the property developer that spent billions to build Dubai's many manmade islands, is in separate talks to re-negotiate terms on at least $10.5 billion in debt it owes.
Dubai officials said recently the emirate is considering selling more assets and offering shares in state-run companies to raise cash.
Dubai World's new board will have the power to approve asset sales, including real estate, stocks, bonds and other holdings, according to the decree.

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