Al-Gergawi quits Dubai Holding to focus on govt role

DUBAI: The chairman of Dubai Holding, a major force in developing the Dubai economy, has resigned to focus on his role in the national government, the conglomerate said on Saturday.
As head of Dubai Holding since its founding in 2004, Mohammed Abdullah Al-Gergawi came to oversee a $35 billion portfolio of assets in over 20 countries, in industries ranging from tourism and real estate to media, information technology and trade.
Sheikh Mohammed bin Rashid Al-Maktoum, vice president and prime minister of the United Arab Emirates (UAE) and ruler of Dubai, praised Al-Gergawi’s performance.
The UAE’s official news agency, WAM, quoted him as saying: “We thank Mohammed Al Gergawi for his excellence in the different responsibilities he was overlooking, his performance in Dubai Holding was exceptional and we appreciate his service to his countries in the different fields.”
Al-Gergawi said in a statement it was time for another talented person, whom he did not identify, to take over Dubai Holding, and that he would now work full-time for the UAE government. He is minister of Cabinet affairs and in charge of strategy development in the national government.
Now in his early 50s, Al-Gergawi was one of a small group of executives chosen by Sheikh Mohammed more than a decade ago to develop the economy.
Put in charge of Dubai’s strategic state-linked companies, they favored construction projects which burnished its reputation as an international business and travel hub: The world’s tallest skyscraper, the Middle East’s largest port and an archipelago of man-made islands in the shape of a palm.
Dubai Holding came under heavy pressure in 2009 when the global financial crisis and a local real estate market crash nearly caused the emirate to default on its debt.
But most of the business districts, which Al-Gergawi established in Dubai, continued to thrive. The emirate is now booming again, with its non-oil industries supporting the UAE’s economy at a time when some other countries in the region are suffering because of low oil prices.
Since the debt crisis, Dubai Holding and other state-linked enterprises have strengthened their books by refinancing debt and selling assets.
Dubai Holding also announced on Saturday strong financial results for 2016 at one of its main business groups, Dubai Holding Commercial Operations Group.
Net profit rose 8 percent to AED6.32 billion ($1.7 billion) while revenues increased 16 percent to AED16.84 billion.
Major initiatives last year included the launch of a project to build the Gulf’s first design and innovation university and the expansion of Dubai Holding’s Jumeirah hospitality business with deals to manage luxury hotels in Turkey and China, the conglomerate said.