DUBAI: The credit crunch has become visible in Dubai and other northern emirates. Dubai owned Istithmar World yesterday said it is shedding 10 percent of its staff in response to the economic downturn. The property market slump in Dubai has led to hundreds of job losses during the last two months.
“In light of current external market conditions and our strategy to align resources in line with business requirements for 2009, Istithmar has reduced its work force by 13 staff members, which is equivalent to 10 percent of its total employee strength,” an Istithmar World spokesperson said yesterday.
The company says it is confident of its investment strategy and plans to “reallocate resources to areas where it see potential.”
One of Istithmar’s sister companies, developer Nakheel, cut 15 percent of its work force and slowed work on a number of high-profile projects including a kilometer long building that will be the longest and biggest in the world when finished. Nakheel said last week that the project has been halted for a year because of the financial crisis.
Nakheel unveiled plans for the tower in October.
Meanwhile, Rasim Kaan, group executive director of Tanmiyat in Saudi Arabia and the United Arab Emirates, said it is expected that in 2009 most Gulf Arab economies will grow at their slowest pace since the oil boom began six years ago as crude output cuts bite.
