DUBAI Oct 10 Dubai-listed construction and
engineering company Drake & Scull International (DSI),
hit by tough conditions in the regional building industry, said
on Monday it had appointed Wael Allan as its new chief
executive, replacing Khaldoun Tabari.
Low oil prices are forcing governments to restrain spending
and thus pressuring the finances of DSI and many other
construction firms in Gulf countries including Saudi Arabia,
where DSI has been operating.
In mid-August, DSI reported a second-quarter net loss of
207.6 million dirhams ($57 million), compared to a profit of
10.3 million dirhams a year earlier. It is expected to report
third-quarter earnings in the next few weeks.
DSI shares closed at a seven-month low of 0.44 dirham on
Sunday, down 24 percent from a peak in mid-July.
Tabari will continue to serve as a non-executive board
member, member of the executive committee, vice-chairman and a
major shareholder, DSI said in a bourse statement on Monday. He
submitted his resignation in August.
Tabari has been leading DSI since 1998, when he initially
bought a stake in the company. He now owns 8.3 percent of DSI,
according to Thomson Reuters data.
Allan was appointed DSI's group chief operating officer in
May this year after decades of experience at other companies in
the construction sector in the Middle East, the United States
DSI's chief financial officer, Kailash Sadangi, told Reuters
in August that the company had asked advisers for proposals to
review its business and find strategic investors.
(Reporting by Hadeel Al Sayegh and Andrew Torchia; Editing by