Arabtec Holding Co. (ARTC), the United Arab Emirates’ biggest construction company, said Sheikh Butti bin Maktoum Al Maktoum resigned as chairman and will be replaced by Ibrahim Belselah. Arabtec also accepted the resignation of board member Sheikh Sultan bin Saqer Al Qassimi, the Dubai-based company said in a statement today.
Builders in the U.A.E. are struggling after developers canceled or delayed half of the real-estate projects planned in Dubai. Arabtec is among the companies that accepted Islamic bonds from Nakheel PJSC in lieu of cash after the developer failed to pay its trade creditors.
Last month, the company reported a 74 percent drop in second-quarter profit, missing analysts’ estimates, as costs increased by 91 percent. Credit Suisse Group AG cut Arabtec’s share-price estimate to 1.34 dirhams from 1.47 dirhams in September, citing “slowing contract awards and declining profitability.”
Arabtec shares peaked at 7.86 dirhams on July 24, 2008. The stock was little changed at 1.36 dirhams as of 12:06 p.m. in Dubai.