Drake & Scull elects Abdulla Atatreh as new chairman

DSI earlier reported a narrower loss in the second quarter at Dh182.7 million compared, with Dh207.6 million a year ago. (Courtesy DSI)
Updated 13 September 2017

Drake & Scull elects Abdulla Atatreh as new chairman

DUBAI: Drake & Scull (DSI) said that the company’s board of directors has elected its new chairman and vice chairman in meeting held on Tuesday.
Abdulla Atatreh has been appointed as group chairman and Ahmed Saeed Al-Hamiri as vice chairman, the Dubai-listed company said in a statement to the stock exchange.
Atatreh, who was also appointed as managing director, replaced Majid Saif Al-Ghurair, who resigned for “personal reasons”, while Al-Hamiri took over the role of Khaldoun Tabari, who was once DSI’s long-standing leader.
Abdulla Fareed Algurg was also elected as DSI’s newest board member for the seat vacated with Al-Ghurair’s resignation.
“The Board emphasized the completion of DSI’s capital restructuring program as a top priority to boost liquidity and stabilize the business,” DSI said in its statement.
“It also concurred on establishing a clear strategy for recovery and growth that will capitalize on the group’s healthy project pipeline, industry stature, and the bullish industry outlook for the region.”
DSI will continue with its organizational restructuring and is planning additional executive appointments for its turnaround strategy, the company said.
The Dubai company earlier reported a narrower loss in the second quarter at Dh182.7 million compared, with Dh207.6 million a year ago. The company’s year-to-date losses have been pegged at Dh1.89 billion after it made a Dh68 million one-off provisions and impairment charges in the second quarter.

Mideast risk scares sukuk investors away

Updated 1 min 35 sec ago

Mideast risk scares sukuk investors away


FAST FACT: Saudi Arabia raised $11 billion on international markets in April

Islamic bond sales slumped 15 percent in first half of the year as political risk in the Middle East scared investors away.

Geopolitical risks from issues such as the economic boycott of Qatar by four of its regional neighbors and the reinstatement of sanctions against Iran have added to investor unease, according to a report from S&P Global Ratings.

The value of Islamic bond sales fell to $44.2 billion compared with $52.2 billion in the first half of 2017 according to data from S&P Global Ratings. The decline in foreign currency sukuk was even greater at 45 percent.

Rising interest rates in the US this year and expected rate increases next year in Europe could also mean that the flow of funds from developed markets into suck could start to slow, S&P said.

A high profile legal row involving UAE-based Dana Gas also raised questions about the enforceability of foreign judgments in the UAE, the credit ratings agency noted.

Although Dana Gas reached a settlement last month with the creditors committee of its suck, the widely reported dispute did not do the sukuk industry any favors.

“While we don’t attribute the recent drop in sukuk issuance in the GCC to the Dana Gas case, we do believe that the underlying issue is suppressing investors’ appetite for GCC sukuk,” the report said.

Saudi Arabia has been most active in regional debt markets so far this year, after raising $11 billion on international capital markets in April.

That issue was five times oversubscribed with about15 percent of investors first time buyers of Saudi debt, according to Fahad Al-Saif, the president of the Ministry of Finance debt management office.

“The target is to become the regional benchmark and safe haven in fixed interest markets,” he said at the time.