Dubai World confident in overcoming crisis
Restructured company says it is ready to face new global order
Dubai: Dubai World, one of the world's largest holding companies, on Thursday said it is now confident in overcoming challenges following a major restructuring that "fits the current market realities" and maximise efficiency that will help the organisation save Dh2.9 billion ($800 million) over the next three years.
Dubai World, a multi-diversified holding company fully owned by Dubai Government, has reduced headcount by a quarter in the UAE to 25,000 and 15 per cent globally to 70,000. It has a 45,000 global workforce under DP World and Drydocks World.
Jamal Majid Bin Thaniah, the newly appointed chief executive of Dubai World, said the restructuring will help the organisation withstand the challenges.
"These restructuring initiatives will help the organisation to maximise efficiencies and leverage our strength to attain greater results," he told Gulf News in an interview while announcing the restructuring.
"The restructuring will help us to face a new world order. The world has changed since October 2008 and the restructuring will help us to move ahead with the business plan in line with the current market situation."
He said despite the challenges, his organisation remained committed to the projects.
"Dubai World has a history of achievements. We have spread Dubai's flag across six continents," Bin Thaniah said. "We have fulfilled Dubai's vision by developing New Dubai and iconic developments such as the Palm island."
He said Dubai World has no plans to sell assets.
Following the move, Dubai World's organisation chart will be dominated by eight entities — Ports and Free Zones World (P&F World), Nakheel, Limitless, Istithmar World, Drydocks World, RetailCorp World, Dubai Maritime City and Dubai Multi-Commodities Centre. DP World, Econ-omic Zones World and P&O Ferries will remain under P&F World.
"While the challenges we faced were not unique, with no global entity immune from the pressures of the worldwide recession, we are confident that Dubai World and its subsidiaries are appropriately focused and properly structured to embrace the new global reality," Dubai World Chairman Sultan Ahmad Bin Sulayem said.
Nakheel will now focus its activities on asset management and real estate development. Analysts say it is a rational move that will help the organisation to overcome challenges.
"It is a rational step that will help Dubai World to attain greater efficiency," Sudhir Kumar, managing director of Realtor's International, said.
Dubai World has debt that it must restructure. Dubai Government has yet to announce allocations to its debt-ridden enterprises. Dubai World officials declined to comment.
