Dubai: Arabtec, UAE’s biggest construction company, has relinquished its CEO – Wail Farsakh. The company is active in the removal process and the changes on higher authorities were the hot topic in the market.
Farsakh had been in the position for the last year and had come in at a time when the company was seeking help in order to rescue itself from bankruptcy. There was a time period when it was predicted that Arabtec would anyhow maintain to survive.
The removal when finished would be recorded in UAE’s corporate history. It will also be the biggest since the amended Bankruptcy Law was enforced.
- November 30, 2020 – Arabtec shareholders put down the weapons and decide to go ahead with liquidation
- December 17, 2020 – Arabtec files with the local court to start on with liquidation.
- February 4, 2021 – Its CEO, Wail Farsakh tenders resignation. So, what’s next?
Constant turnover
Before Farsakh, Arabtec had seen a lot of changes at the top, along with its senior management team. Each CEO was provided a challenge with finding a step in the financial loss, but matters only got degraded.
The Arabtec liquidation is now in front of the local court, and the company’s creditors, as well as subcontractors, are likely to have come up with what is owed to them. Figures being bandied around talk of upwards of Dh10 billion-plus.
The Arabtec liquidation is now in the local court, and the company’s creditors and also the subcontractors are likely to have come up with what is provided to them. The total sum was about Dh10 billion-plus as it was in talks.
Uncertain projects
Informed sources provided that Arabtec – whose works include Burj Khalifa and Louvre Abu Dhabi, to name just two – has been famous amongst their other works. Arabtec is yet to provide its statement on the case.
Interestingly, all through the crisis, one of its blue-chip subsidiaries Target engineering picked up a $38.6 million offshore marine works in Saudi Arabia’s Jubail City. This took place in November.
Arabtec is expected to announce who will take over as interim CEO.