Arabtec chief executive Hasan Ismaik resigns

The Arabtec chief executive Hasan Ismaik has resigned with immediate effect, after the company’s shares lost a third of their value in a month, dragging down the Dubai Financial Market.

A source close to the company said that board member Mohammed Ali Al Fahim will be confirmed as his replacement when the company’s board of directors meets on Wednesday afternoon.

The spokesman said that Mr Ismaik has resigned to concentrate on other business interests.

Mr Ismaik, who was appointed chief executive officer in 2012, is Arabtec’s largest shareholder. Much of his 28.85 per cent stake was accumulated earlier this month.

But Mr Ismaik told Bloomberg that he would consider selling down his stake.

“If approached by any government entity to buy my stake, I would consider the offer,” he said.

Mr Ismaik’s departure marked the end of a chapter in what has been a tough week for the company and the market, according to Mohammed Ali Yasin, the managing director at National Bank of Abu Dhabi’s brokerage arm.

“Arabtec now needs to make sure it improves its transparency and stays close to shareholders and close to the market,” he said. “It is important now in the coming weeks that it is as transparent as possible so as not to allow rumour to sway the share price.”

Arabtec shares closed up 1.9 per cent today at Dh4.3.