Nakheel CEO quits and returns to Sydney

The Australian expatriate boss of Nakheel, Chris O’Donnell, is departing Dubai and returning to his Hunters Hill, Sydney home.

As Nakheel restructures $10.5 billion of debt, O’Donnell, who joined the Dubai World unit in 2006, quit after his contract ended.

Chief financial officer Sanjay Manchanda will replace him until further notice, the company says.

“The departure won’t affect Nakheel’s strategy, which at this point is determined by the government and the chairman,” says Majed Azzam, an analyst at AlembicHC Securities in Dubai.

“Once the restructuring is completed, the new CEO will have to start making some tough decisions on what to do with Palm Jebel Ali and other projects that are on hold.”

Nakheel, which constructed an artificial archipelago shaped like a world map, has suffered since Dubai’s property prices slumped 64 percent from the market's peak in mid-2008.

Mr O’Donnell leaves behind two Australian former colleagues, Matthew Joyce and Marcus Lee, who were senior executives of the Nakheel, subsidiary Dubai Waterfront.

The two, who can’t leave the emirate, are accused of profiting from the sale of land in an unauthorised manner.

O’Donnell recently testified in their favour.