Sheikh Ahmed bin Saeed Al Maktoum, the uncle of Dubai’s ruler, was appointed the chairman of Emirates NBD PJSC as the government made changes to the board of the United Arab Emirates’ biggest bank.
Sheikh Ahmed, who is also chairman of Emirates airline, Dubai World and Dubai’s Supreme Fiscal Committee, replaced Ahmed Humaid Al Tayer, state-run Emirates News Agency reported on its website. Hisham Abdullah Al Kasem was named deputy chairman, while three other board members were also replaced.
Al Tayer, who remains governor of the Dubai International Financial Centre, has been the chairman of Emirates NBD since it was formed in October 2007 with the merger of Emirates Bank International PJSC and National Bank of Dubai PJSC. Al Tayer is a former U.A.E. minister of state for finance and industry and was also the chairman of Emirates Bank from 1983 until its merger in 2007, according to the lender’s website.
Emirates NBD is one of the biggest lenders to state-owned Dubai World and units of Dubai Holding LLC, which is in talks with banks to delay payments on at least $12.5 billion of liabilities. The bank’s profit dropped over the last two years as loan defaults rose, and the lender sold a 49 percent stake in its credit-card processing unit, Network International LLC.
Dubai, the second-biggest of the seven sheikhdoms that make up the U.A.E., had to seek help from neighboring Abu Dhabi after the global credit crisis pushed property prices down by more than half from their peak in 2008, and frozen credit markets forced some state-owned companies to delay loan payments. Dubai World signed a final agreement with its bank creditors in March to restructure $25 billion of debt.
Emirates NBD shares climbed 2.4 percent, the most since June 15, to 4.20 dirhams at 11:20 a.m. in Dubai. The stock has gained 52 percent this year compared with a 5.9 percent decline in the benchmark DFM General Index.
Dubai’s government owns 55.6 percent of Emirates NBD, according to data compiled by Bloomberg.
New members appointed to Emirates NBD’s board include Mohammed Obaid Al Shehhi, Mohammed Hadi Ahmed Abdullah Al Husaini and Shoaib Mer Hashim Khouri. They replaced Eissa Saleh Al Gurg, Fardan Ali Al Fardan, Khalid Jassem Bin Kalban, Abdullah Ahmed Lootah and Hamad Mubarak Bu Amim.
Sheikh Ahmed Bin Mohammed Bin Rashid Al Maktoum, a son of Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum, was also named to replace Sheikh Ahmed as the chairman of Noor Islamic Bank PJSC, another Dubai government-controlled lender.