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Dubai. The city-state’s ruler has replaced the head of Dubai World with the chief of Emirates airline, turning to one of his closest confidants to lead the turnaround of the debt-laden conglomerate.

Sheik Ahmed bin Saeed Al Maktoum was named chairman of the sprawling company, whose holdings include seaports, hotels and high-end retailer Barneys New York, in a decree carried on Sunday evening by state news agency WAM.

He is an uncle and top aide of Dubai’s hereditary ruler.

Ahmed replaces as chairman Sultan Ahmed bin Sulayem, who spearheaded Dubai World’s supercharged growth but also oversaw the accumulation of unmanageable levels of debt.

Bin Sulayem grew Dubai World’s port business into the world’s fourth biggest.

He oversaw the construction of islands shaped like palm trees and a map of the world, as well as overseas investments that included US hotels, a stake in Cirque du Soleil and half of a mammoth real estate project on the Las Vegas Strip.

The order reshuffled the rest of the conglomerate’s board too, giving seats to other top lieutenants of Dubai’s ruler, Sheik Mohammed bin Rashid Al Maktoum, who have been charged with cleaning up the emirate’s fiscal problems.

Ahmed is best known as the chief executive of Emirates, the city-state’s rapidly expanding international airline, which pulled in $925 million in first-half profit.

The carrier said his role there would remain unchanged.

Dubai World is at the center of the emirate’s financial troubles, which erupted last year when the conglomerate called for new terms on billions of dollars of debt it owed.

The surprise announcement rattled global markets.

The company has taken steps since to get its finances in order. It won full support from creditors for a $24.9 billion debt restructuring in October.

The International Monetary Fund estimated that Dubai and its many state-linked companies owe as much as $109 billion.

 
Associated Press