The chief executive of Dubai's state fund, Mohammed al-Shaibani, has been appointed chairman of Nakheel, the state property developer said on Tuesday, replacing Ali Rashid Lootah, who oversaw the firm during a debt restructuring a decade ago.

Lootah joined Nakheel as chairman in 2010 after the company was pushed close to default following the emirate's 2008-2009 property market crash. Nakheel, which restructured its debt in the fallout of the crash, paid back its outstanding debt four years early in 2014.

Shaibani, also a Dubai government official, will have to navigate a new challenge - an extended downturn in Dubai's property market which is a key contributor to state revenues.