Sunday, June 21, 2009

Dubai property developer Deyaar chairman resigns

Dubai Property developer Deyaar chairman Nasser al-Shaikh has resigned from his post, the Dubai property firm said in a statement on Sunday, without giving a reason.

Shaikh was replaced in May as head of Dubai's Department of Finance after spearheading the launch of the emirate's $20 billion bond programme in February, a move aimed at easing worries state-linked companies could default on debts.

"The board of directors of Deyaar will convene shortly to consider its ratification of the same," it said in a statement.

Deyaar did not name Shaikh's replacement.

Shaikh remains chairman of Islamic mortgage lender Amlak and is an assistant to the director of the ruler's court for foreign affairs.

Shares of Deyaar were down 1.5 percent at 0712 GMT in line a drop in the Dubai index.

"Al Shaikh is a respected entity in the industry but this news is unlikely to have any major impact on Deyaar's stock price until the reasons for his exit are made public," said Mohammad Ali Yasin, managing director at Shuaa Securities.

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