Sweden’s government has nominated Jesper Brodin, a veteran executive at the world’s biggest furniture brand IKEA, to head the UN Refugee Agency UNHCR, saying he would bring valuable business acumen to the role at a time of funding challenges.

Current United Nations High Commissioner for Refugees Filippo Grandi is leaving the post at the end of the year as his term ends.

Brodin, a 56-year-old Swede who joined the budget furniture giant 30 years ago, is stepping down in November as CEO of Ingka Group, the owner of most IKEA stores worldwide, after seven years on the job.

“The UN system would be strengthened by a person with business experience, especially given the major challenges now facing the UN,” the Swedish government said in a statement on Tuesday.

“That’s why someone who knows how to keep hold of the purse strings and deliver efficient operations is needed,” it said.

Private donors fill aid shortfall

Aid agencies have been rocked by funding cuts from major state donors, led by the US and other Western powers that have prioritised spending on defence. As a result, many UN humanitarian agencies have increased their outreach to private sector donors in hopes of filling the gap.