DUBAI: The UAE government-controlled property giant Nakheel said yesterday it has made redundant 500 of its staff, 15 percent of its global workforce, because of the global financial crisis and that it would be scaling back work on some of its projects.
A Nakheel spokesperson described the decision as a responsible action in light of the current global market conditions. “We have the responsibility to adjust our short-term business plans to accommodate the current global environment. The redundancies are indeed regrettable, but a necessity dictated by operational requirements which are in turn dependent on demand,” Nakheel said in a statement.
“All affected employees were provided redundancy packages, which includes outplacement support services to assist in this time of transition,” the statement added.
Nakheel is in charge of developing several iconic projects in Dubai, including three palm-shaped man-made islands, only one of which is completed, and a cluster of islands in the shape of a map of the world.
It also announced last month a jaw-dropping plan to build a one-kilometer-high tower that would overshadow the still unfinished Burj Dubai, already the tallest on earth. Damac Properties, Omniyat Properties and Tameer also cut their staff recently. Damac laid off 200 workers, Omniyat 69 and Tameer 150 to 175.
Officials in Dubai insist that the emirate’s real estate sector — a major engine of economic growth in recent years — will weather the global crisis, but the job losses and cutbacks in the property sector are increasing. Buying and selling activities have slowed down in recent weeks, leaving developers unable to sell units.
Half of Tameer’s workforce of 350 have been handed redundancy notices stating that Dec. 31 would be their last day at work.
Dubai-based developer Omniyat Properties confirmed it has axed nearly a third of its workforce to ride out the real estate downturn.
A total of 69 jobs, including 32 staff on probation along with others in sales and marketing, have been lost.
Dubai developer Damac said earlier this month it planned to lay off 200 employees. This is despite making profits of 500 million dirhams for the first nine months of this year. Damac Properties has projects worth about $30 billion across the Middle East and North Africa. Those affected are in sales, marketing and recruitment.
According to reports, developers Limitless and Sama Dubai are also reviewing their staffing levels and considering job cuts. Sama Dubai is the international real estate arm of Dubai Holding with projects located in Dubai, Qatar and Tunisia.
— With input from agencies
