Embattled UAE contractor Arabtec has announced that its acting chief executive, Mohamed Al Fahim, has stepped down from his position citing “other commitments”.
Mr Al Fahim, who had been in the role following the departure of its former chief executive Hasan Ismaik in June 2014, will remain on Arabtec’s board, however, and will be replaced as acting CEO by fellow board member Saeed Al Mehairbi.
Al Mehairbi also holds management positions at Abu Dhabi National Oil Company and at International Petroleum Investment Company (IPIC) – the Abu Dhabi government-owned investment company that owns over 92 per cent of Arabtec’s biggest stakeholder, Aabar Investments.
Arabtec has undergone a couple of major restructuring exercises since the departure of Mr Ismaik, including a shake-up of its management team.
It has also been forced to recognises losses on a number of contracts, which recently led to the firm declaring a third quarter net loss of Dh944.7 million earlier this month as revenue dropped 24 per cent to Dh1.6 billion.
This brought its accumulated losses for the nine months to September 30 to Dh1.94bn, compared to a profit of Dh309m in the same period last year.
In early trading, the company’s shares fell by 4 per cent to Dh1.16, which is 83 per cent lower than the Dh6.84 per share peak it was trading at in mid-May 2014.