Dubai Employment News
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| A second wave of job cuts are likely next year, as the companies have begun to feel the pinch of economic downturn, warns a senior banker, despite currently being in the recovery phase. The global downturn has witnessed several job losses in the property and financial sectors in the UAE during the past one year, with the commercial and residential property sales being completely dried up. Further redundancies could lead to more strain in business of banks, which have been already forced to set aside billions of dirhams, ever-since the start of the year, to cover potential defaults. The Head – Consumer Banking, Standard Chartered, Chris de Bruin, agrees that the biggest challenge that the bank faces are people who have lost their jobs. The Head – Consumer Banking, Emirates NBD, Suvo Sarkar, also said that it has been a tough time for consumer banks, and the fourth quarter of this year and first quarter of 2010 will also be tough, although second half of next year may get better. Deyaar Development Company, one of the largest developers in Dubai, cut down 20 percent of its staff, after reporting 74 percent drop in third-quarter profits, up from the same period last year. Dubai World has axed 12000 jobs (15 percent of staff) to rake in $800 million in the form of savings in three years. Local lenders too would have shed about 1000 jobs, de Bruin pointed out. “Next year, there will be lot of stress, as people will continue to lose their jobs. We are still on high alert,” he said. Lack of reliable statistics has made it impossible to accurately assess the number of jobs lost across the Emirates this year. Although several analysts agree that there has been slowdown this year, the fall out from global financial crunch continues to work through the economy. An analyst at Al Mal Capital, Bobby Sarkar, said there has been a fair amount of turbulence, particularly in unsecured-lending products, credit cards and personal loans. The bank customers across the Emirates are unable to pay back Dh.2.50 for every Dh.100 of lending. This rate may increase to as much as 10 percent for personal loans and credit cards. The lack of bankruptcy protection in the UAE has made the consumer banks in the UAE, particularly susceptible to job losses. People are unable to manage their creditors, and it is becoming a crisis, as there is no strong legal framework, de Bruin said. Posted on 2/11/2009 Read more newsThree new industrial parks likely to boost job prospects in Abu DhabiPositive outlook for UAE jobseekers in 2012UAE workforce to witness steady growth in 2012Pay hike on the agenda for UAE employees in 2012UAE residents unsure about job stability and new jobs in the marketImproved recruitment activity in UAE during 1H 2011Job redundancies unlikely in UAEEmirates Airline to conduct 77 recruitment fairs across the globePromotions without pay hikes, now a common trendUAE records growth in hiring process during summer monthsMonsterGulf launches Return2Home recruitment initiative for expat nationalsNew properties to generate 1000 new jobs in UAE this yearUAE salary levels most competitive in the region, say expertsRevised minimum wage policy likely for migrant Indian workersTawdheef 2011 opens on 25th January with over 2500 job vacanciesUAE job market to be streamlinedMore than half of the employers to recruit in Q4 2010Dubai among top five destinations of choice for employmentAll companies in Dubai must abide by Wage Protection SystemCompanies failing to pay timely wages will be referred to Labour Court |
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