Dubai World Istithmar unit CEO resigns

State-owned investment company Dubai World has replaced the chief executive of its Istithmar World with the unit's chief investment officer, as the group focuses on managing its investments rather than making new acquisitions.                                           

Istithmar is one of the flagship companies of state-owned Dubai World, which has been hit hard by the global financial crisis, and is in the process of restructuring some $22 billion of debt.                                           

David Jackson, who had spearheaded Istithmar's aggressive overseas expansion strategy, including the purchase of luxury US retailer Barney's New York and a stake in Standard Chartered, has been replaced by Andy Watson, Dubai World said on Wednesday.                                           

"Jackson was perceived as a bull-market specialist who was good at forcing through positive decisions but who wasn't necessarily good at biting the bullet," said a Dubai-based analyst who didn't want to be identified.                                           

"With Jackson's departure one of the last architects of the Dubai bull-market strategy left," the analyst said.                                           

Two Istithmar executives left the group in early September amid a management shake-up. Speculation mounted that Jackson would depart as well, but Istithmar said then he would continue to lead the company.                                           

"Today, Istithmar World is focused on the steady-state management of existing assets to maximise value rather than on private equity investment," said Aidan Birkett, chief restructuring officer at Dubai World, in an e-mailed statement.                                           

Deloitte's Birkett was hired by Dubai World at the end of November to lead the group's restructuring.                                           

Struggling Dubai World said on November 30 its restructuring plans did not include asset sales at Istithmar World, considered some the group's crown jewels.                                           

Watson took over as chief investment officer at Istithmar World in September in a management reshuffle involving Dubai World's troubled property unit Nakheel, developer of three palm-tree shaped islands. He was previously at UK-based banking group Barclays.                                           

Istithmar hired an advisory firm in August to help it mull options to shore up Barneys'' financial position amid speculation it is freezing investments as part of a restructuring that may result in the sale of the fund or its assets.