At least 100 jobs go at property giant Damac

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JOBS LOST: At least 100 jobs are understood to have gone at Damac Properties. (ITP Images)

At least 100 jobs are thought to have been lost at Dubai-based real estate developer Damac Properties as the global financial crisis continues to hit the region.

Arabian Business was contacted by people close to staff at the company saying the jobs had been cut during the past two weeks. Company chiefs refused to comment on specific numbers but it is understood that dozens of employees from across several departments were let go.

In a statement, Damac Properties CEO Peter Riddoch said: "The continuing global slowdown will inevitably lead companies to review their staffing levels and recruitment requirements.

"Damac Properties will continue to review its own position in line with the market and aim to ensure that it right sizes/maintains its staffing levels accordingly."

Damac Properties, which was established in 2002, has interests throughout the Middle East, and is expanding rapidly into North Africa, Jordan, Lebanon, Qatar, Saudi Arabia and the Far East.

The company’s property portfolio is worth in excess of $45 billion and on its website the company says it will deliver 2,300 units in 2008 and a further 7,100 units by 2010.

In an interview with Arabian Business at real estate expo Cityscape Dubai last month, Riddoch said the fundamentals of the real estate market in the region were “strong”, despite global financial turmoil.

“This region can’t be totally immune to what’s happening, but I think people are over-reacting to an extent to what is happening," he said.

“Residential and commercial demand in the Gulf sits well ahead of supply, and will continue to do so in the near future.”

At the time Riddoch said Damac had not noticed a slowdown in its property sales, although he accepted that investors were more cautious.

Last week, Standard Chartered refused to deny that it had laid off at least 80 employees in the UAE.

"Some roles may be consolidated or restructured. This has been and is very much 'business as usual'," Noura Gwanny, corporate affairs, Standard Chartered, said in an emailed statement on Monday.

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READERS' COMMENTS

Employees wana get out themselves
Posted by Ashar on Monday 10 November 2008 at 13:13 UAE time

Besides the firings, I know a few Damac employees who have left the company themselves due to the developers hard handed tactics and low pay as well as almost no commissions from sales in the past few months.
Other developers and companies should learn a lesson from this that the best way for the company to grow is to keep its employees happy and not treat them as tissue paper...and in turn they will work for you harder when times are down....rather the opposite of what has happened at Damac.

damac
Posted by agent on Monday 10 November 2008 at 11:59 UAE time

the statements keep changing and have lost all credibility now. The reality is that Damac is close to shutting down, and so is firing all its staff slowly. The projects are nowhere near even beginning. There is no demand and all of us agents know it, especially for Damac with its already lost reputation.

UAE property
Posted by Saeed Iqbal, Dubai, UAE on Monday 10 November 2008 at 07:14 UAE time

UAE property bubble has burst. Now it's just a matter of accepting. There are no buyers anymore... people are out of cash. Not good at all, a lot more jobs can be lost.

Way ahead of you on this one!
Posted by Investmentpropertyrumours on Sunday 9 November 2008 at 21:07 UAE time

This is just the beginning of the end for many of the property giants in the UAE and the surrounding area. About time.

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