DUBAI // Istithmar World, an investment company owned by the Dubai Government, has suspended two of its most senior executives after they were detained by police in Dubai's widening corruption inquiry. Adel al Shirawi, who held the position of vice chairman of Istithmar World, and Feras Kalthoum, the company's chief financial officer, were suspended "in light of the ongoing investigations in relation to activities during their previous positions at another company", Istithmar said in a statement yesterday. Both executives formerly worked at Tamweel, the UAE's second-largest home finance company. Mr Shirawi served as Tamweel's chief executive and Mr Kalthoum was the firm's head of finance. Tamweel's deputy chief executive, Abdullah Nasser Abdullah, was also detained last week as part of a six-month investigation by Dubai police into fraud in the property and finance sectors. Tamweel shares plunged more than 10 per cent yesterday, closing at Dh4.21 (US$1.14) per share, bringing to 22 per cent its slump since Mr Abdullah's arrest on Sept 8. The Dubai market as a whole has lost 31 per cent of its value since the start of the year, mostly due to heavy selling by foreign investors. While many analysts see UAE stocks as undervalued, the widening corruption inquiry has also scared away many local investors from some of the country's largest finance and property stocks. The Dubai Government has acknowledged that it is engaged in an attempt to eliminate white-collar crime and restore confidence in the emirate's growing financial sector. Seven senior executives have been detained in the six months since Zack Shahin, the former chief executive of Deyaar, a property developer, was jailed over allegations of "financial mishandling" in March. No one has yet been charged. Mr Shirawi, who was regarded so highly that in June he rang the opening bell on the Nasdaq stock exchange in New York on behalf of Dubai World, was also suspended from the board of directors of Istithmar, the company said yesterday. Istithmar is a subsidiary of Dubai World, a conglomerate owned by the Dubai Government. Many of the companies implicated in the inquiry have crossed shareholdings. Istithmar World, which has a private equity and alternative investments division along with departments dedicated to ventures in aviation and start-ups, is the largest shareholder in Tamweel, with a 22 per cent stake. Dubai Islamic Bank (DIB), which has also seen two former senior executives arrested in the inquiry, owns a 20 per cent stake in Tamweel and is the largest shareholder in Deyaar. DIB has said the investigation would have "no impact on the financial position of the bank". Tamweel, which was unavailable for comment yesterday, said last week it was co-operating with the inquiry. It said the investigation "will have no impact on the operations and financial strength of Tamweel". Sama Dubai, a property concern with four executives detained in the investigation, is owned by Dubai Holding, a private company owned by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai. Dubai Islamic Bank last week seized the land assets of Plantation Holding, a development company with a plot intended for a polo resort in the proposed $40bn Dubailand zone. The owner of Plantation, Arthur Fitzwilliam, has also been arrested. DIB said the seizure was to recover debt in default, but Plantation said the action was illegal. Company officials said Deyaar was now in talks with its parent to take over the Plantation project, the value of which has been estimated at Dh2.5 billion (US$681 million). Nakheel, the state-controlled developer of The Palm islands, has also confirmed that one present and one former employee have been questioned in the fraud investigation. @Email:shamdan@thenational.ae