Scam in Deyaar Real Estate Developer

Deyaar CEO detained, says chairm



Deyaar, Dubai's second-largest property developer by market value, said its former CEO had been detained by the authorities pending investigation into alleged financial irregularities.

Deyaar said on Thursday that Chief Executive Officer Zack Shahin had resigned, without giving a reason.

"He's been detained," Deyaar Chairman Nasser Al Shaikh told Reuters on Thursday. "There is an investigation by the public prosecution ... he did something he was not a supposed to do."

Shaikh would not be more specific saying only that the investigation was "financial" in nature.

"From our side we saw a few things that raised our concern and we are now going through the legal system for the benefit of our company and our shareholders," Shaikh said.

"Whatever is going on right now, it will not have any real impact on Deyaar profitability," Shaikh said.

The company named Adnan Tareen, head of finance, as acting CEO. Shares of Deyaar were down 2.13 per cent at 0607 GMT.

Shahin could not immediately be reached for comment on his mobile phone. (Reuters)