The largest private property developer in Dubai, Damac Holding, has axed 200 jobs, as the global credit crisis has slowly begun to leave its impact on the property sector.
Damac Properties $30bn worth of projects in the Middle East and North Africa (MENA) region, and the job cuts have been done in the field of marketing, sales and recruitment departments.
“Being a competitive business group, Damac would like to maintain its staffing levels based on marketing conditions. All companies are bound to do so,” said Peter Riddoch, Chief Executive Officer of Damac.
“UAE is currently witnessing a slowdown in real estate activities, as it is suffering the fallout from global financial crisis, and being an international developer, Damac cannot hope to be unaffected by the downturn in other countries such as the UK,” Riddoch continued.
Emaar Properties, the largest property developer in the region has not spoken about its decision on staff leveling.
The announcement from Damac imbibes the fact that the thriving property sector of the emirate may have hit its peak.
The General Manager of a consultancy firm, Watson Wyatt in Dubai, says that there is decline in jobs, and there is cautiousness all around at this stage. It is more obvious in the real estate sector, as there are lay-offs. Dubai has been the fastest to react, but it is slowly catching up across the Gulf.
The lay-offs are mostly in the mid-level technical positions. The Llyods TSB Middle East has even stopped granting mortgages for apartments in UAE, and is seeking a 50 percent down-payment for villas due to exceptional market conditions.
According to Mohamed Alabbar, Chairman of Emaar, the real estate sector growth could slow down from 13 percent to 9 percent due to global downturn and the commercial hub has established a committee to boost confidence in the property market. Posted on 12/11/2008
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