Damac Properties announces plans to cut 2.5% of workforce
One of the largest property developers in Dubai has announced it is to cut 200 jobs, or 2.5% of its workforce.
In the latest indication that the global credit crunch has badly impacted the Dubai property market, Damac Properties said it would be reducing its headcount by approximately 200 in its sales, marketing and recruitment divisions.
Damac has around $30bn (£19bn) of projects across the Middle East and Africa, with several mainly residential developments in the Jumeirah Village and Business Bay areas of Dubai. Its flagship project is the 460m Damac Heights skyscraper currently under construction in Dubai Marina, designed by the UK-based firm Aedas.
Peter Riddoch, the chief executive of Damac Holdings, told Reuters: “As a competitive business, the Damac Group has to ensure that it maintains its staffing levels according to market conditions both good and bad … As an international developer, we cannot expect to be unaffected by the downturn in countries like the UK."
Damac is the first Middle East property developer to make redundancies though there is speculation that others may follow suit as financial lending in the UAE slows down. Emaar, which yesterday announced its decision not to list on the London Stock Exchange, declined to comment on whether or not it would be making any redundancies.