Dubai: Nakheel, UAE's biggest developer by project value, has scaled back some of its projects and laid off 500 staff, it said in a statement on Sunday.
Describing the decision as a responsible action in light of the current global market conditions, a Nakheel spokesperson said: "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."
All the affected employees were provided a redundancy package, which includes outplacement support services to assist in this time of transition, WAM reported.
Damac, Better Homes and Omniyat have all recently announced their own job cuts, as demand for real estate has fallen.
"This phenomenon is not restricted to the property sector. Some major corporates have also announced staff reductions for their Dubai operations," said Matthew Green, head of research and consultancy, Cluttons, said.
Some experts said now is a good time for smaller developers to join forces to bring confidence back to the market. Marwan Bin Galita, head of Dubai's Real Estate Regulatory Authority, told Reuters on Sunday that developers should review projects that had not been launched for sale. "Slowing down is very important and this is what we at Rera asked developers to do about a year back," he said.
Have you been made redundant from your job in the UAE? If you have lost your job as a result of the slowdown and would like to talk about it then fill in the comment form below. Please include your phone number in the message if you want us to call you.
Indeed, it is a bad time for the market but I am hopeful that this will not last long. Although the market will not jump back to the previous mark overnight, I am sure it will slowly and steadily try to gain once the downfall stops. It is time confidence-building measures are applied to the market to bring back consumers' faith.
Posted: December 01, 2008, 10:31
These steps taken by big companies will encourage other companies to downsize and act as a catalyst for job cuts in the UAE. Currently, no one is certain of a job guarantee. More mental pressure is building on expatriates. The UAE authorities should take this into consideration and take some major steps with immediate effect.
Posted: December 01, 2008, 09:28
This is a very difficult time for all sectors. However, this might be good news for those who are well qualified and have good experience in their field because they might be able to get a better job opportunity now. But it is a bad time for those who are dependent on such people.
Samar Kumar Chatterjee
Posted: December 01, 2008, 09:11
Working for Nakheel was good. Now, the situation is very bad and we should not blame the company. We need to understand that it is because of the credit crisis that this is happening. It is not only us who are suffering, it is also the company. I work in Nakheel and if the company terminates me for redundancy reasons then I will not have a problem because ever since I joined Nakheel I have been getting very good support from them, not only for me but also for my family.
Posted: December 01, 2008, 09:00
One should not spoil his health by thinking too much if he is made redundant. Just don't care if the company makes you redundant. If you are skilled and talented then you will hopefully get a new job in no time.
Posted: December 01, 2008, 08:27
This is very unfortunate that due to faults in management the common employee is affected. Planning, feasibility and project management are the main responsibilities of top executives. Who are the actual people responsible for such situations?
Posted: December 01, 2008, 07:15
I joined a real estate company just five months ago but due to the credit crisis have now lost my job. I have 10 years of experience in the travel sector in Dubai.
Khaja Bashir Al Deen
Posted: December 01, 2008, 07:03
I work for a company in Hamriya Freezone, Sharjah. I received a notice from my employer stating that my job has been abolished due to the global financial crisis. They gave me 30 days notice period.
M. Alam Shameel
Posted: December 01, 2008, 05:38
I work for Nakheel Asset Management (NAM), where 50 staff members were made redundant. Now, customer service in Palm Jumeirah and Discovery Gardens is at risk because complaints or problems will not be attended to as the complete department has been made redundant.
From A Reader
Posted: November 30, 2008, 18:27
Yes I have been made redundant in my job from an investment banking sector. Fortunately, I was able to grab another job but had to compromise on the packages offered.
Posted: November 30, 2008, 15:28
I was terminated on November 13 along with most of the staff of my company. This was due to Nakheel's projects slowing down. I am still looking for a job in Dubai.
Ana M. O'Reilly
Posted: November 30, 2008, 14:48
For information on the real estate sector, within the UAE, please visit our sister site, GNProperty.com.