DUBAI: Former Dubai Department of Finance Director-General Nasser Al-Shaikh resigned from three more companies yesterday linked to Dubai’s government, including Dubai Islamic Bank (DIB), a day after leaving its affiliate Deyaar.
Officials and statements from DIB, National Bonds, and education provider Taaleem confirmed Al-Shaikh’s resignations just a month after he was replaced as head of Dubai’s Department of Finance. Al-Shaikh declined to comment. The move will likely add to investor confusion as Al-Shaikh had spearheaded the launch of the emirate’s $20 billion bond program in February, a move aimed at easing worries that state-linked companies could default on debts.
He was removed from his post in May without explanation.
None of the companies gave a reason for the resignations, which initially sent DIB shares lower, before closing 1.2 percent higher.
Shares in Deyaar, in which DIB holds around a 41 percent stake, rallied yesterday after falling 1.7 percent on Sunday.
DIB and Deyaar said in statements they would meet shortly to consider the ratification of Al-Shaikh’s resignation. A spokeswoman for Al-Shaikh confirmed he had also stepped down from National Bonds and Taaleem.
Two spokeswomen said he would stay on as chairman of troubled mortgage lender Amlak, in which Emaar Properties holds a 45 percent stake, according to Reuters data.
Deyaar Chief Executive Markus Giebel told Reuters late on Sunday Deyaar was a stable company with the backing of DIB, and Al-Shaikh’s resignation would not have a big impact on the company.
The resignations have fuelled speculation and rumors after investors were left bewildered following Al-Shaikh’s dismissal a day after outlining the emirate’s handling of the financial crisis and its recovery plan at the World Economic Forum in Jordan.
Executives and officials, speaking on condition of anonymity, have said Al-Shaikh was considered to not be towing the official line, developing ties too close to media and disclosing information without the consent of government heads.
During his second tenure as the head of Dubai’s finances, Al-Shaikh earned respect from investors and analysts for efforts to navigate difficulties in the former boom-town and help bring much-needed transparency.
