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Wed 16 Jun 2010 07:28 AM

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Dubai's top 3 listed firms cut costs by 10% in Q1

Property giant Emaar leads way with 32% cut in operating costs in first quarter.

Dubai's top 3 listed firms cut costs by 10% in Q1

Dubai's top three listed companies reduced their operating costs by more than 10 percent in the first quarter of the year, compared to the same period in 2009, it was reported on Wednesday.

Cost-cutting measures by Emaar Properties, Emirates NBD and Mashreq saw them spend AED194m less on selling, general and administrative expenses (SG&A), Emirates Business reported, citing the companies' Q1 financial statements.

The savings included salaries, commissions and travel expenses for executives and salespeople, advertising costs, and payroll expenses and other operating costs, the paper said.

It said Emaar Properties alone saved almost AED134m (32.7 percent) in SG&A during Q1.

Emirates NBD and Mashreq saved AED44.7m and AED15.3m, respectively, in operating costs during the same period, amounting to a saving of 4.8 and 3.2 percent respectively, the paper added.

Together, operating expenses for the three giants dropped from AED1.82bn in Q1 2009 to AED1.63bn in Q1 2010 – a fall of 10.6 percent.

The paper said 11 of the top 20 firms listed on Dubai Financial Market spent less in Q1 2010 compared with Q1 2009 with expenses declining by more than AED265m in total.

Conversely, SG&A for Gulf General Investment Company shot up by more than 62 percent, and over 40 percent for Arabtec, the paper said.

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Steve 10 years ago

It all sounds very good on papar but if a survey was done on their customer service they would come last. When will Business leaders realise that unless you improve your custoemr service you will not see sales increase! Have you seen the poor quality of service offered by Emaar and they wonder why people won't deal with them!