By Andy Sambidge
Company says move 'in keeping with business objective', adds no jobs will be lost.
Master developer Nakheel has merged the project teams working on its Waterfront and Palm Jebel Ali developments but no jobs will be lost, the company has said.
The move was part of a restructuring process being carried out across the entire company, the property giant said in comments published by UAE daily The National on Monday.
Nakheel described combining the project teams under one management structure as “in keeping with our business objective of matching supply and demand in the most effective way”.
The company cut 500 staff last month and is one of a number of UAE developers which have been forced to make redundancies during the recent slump in the real esate and construction industries.
Nakheel also announced last month that it was delaying work on major projects including the Trump International Tower and Hotel, Frond N villas and Gateway Towers – all on Palm Jumeirah – and The Universe.
It said last week that work on the Nakheel Tower - set to become the tallest tower in the world - has been delayed for one year.
I just spoke to a Nakheel employee yesterday, who worked on the Waterfront development... and was fired. Amongst others. Makes you wonder, doesn't it?
i thinks it has now become a fimiliar phrase LAYING OFF, BOUNCING CHEQUES & HALT TO A PROJECT, what i would suggest as that the RERA and land department should invite all the master developers and should ask them about their financial health and on the basis of their finance capacities RERA and Land Dept should ask them ok you have finance only for that much projects and the rest you need to scrap and refund the deposits to customers, i think it will have a very positive effect on the market because those who will get refunds can invest in some other projects and also the chance of bankrupcy will be minimum.
If Nakheel merges its teams, and halts some of its projects, it is good for the health of Dubai property market. But Nakheel in its position of being Master Developer has the responsibility to look after the viability of the projects of its sub-developers also. Developer: A A Global has one and only one project: Arabian Tower in Jumeirah Village South (Master developer: Nakheel) of which construction has not been started at all. In the present scenario, to cancel this project is wise and good for both developer and buyers. Otherwise, if construction is started on the assumption that buyers will pay seeing the work, project will stop in midway. Money should be refunded to buyers after marginal deduction to cover the expenses of the paper work done so far. It will boost the confidence of buyers and certainly they will come back if and when situation improves. Arabian Tower is just one example, there are so many cases like it. Excess supply of housing units will certainly worsen the situation. Unfortunately much has been said but little has been done about improving situation by controlling the supply and increasing the demand of residential property.
Hoping that this giant developer will surpass the global financial crisis and will get back on its imaginative shine.
Its high time that all the big developers in dubai should rethink their business strategies. Its surprising that everybody launches only high end properties, no body thinks of the middle class income groups. Hope that we all survive with the current financial crisis, and come up with more reliable and long term solutions.
Nakheel has finally taken one right step, by merging its teams. The crisis faced by the company now, has got more to do with the bad planning and bad strategies by Nakheel's development managers, rather than the economic downturn. If Nakheel wants to come out of this crisis and do well in a stable market, they should do a whole restructuring of its staff and make sure that the right people are at right places. This is a good opportunity to do that and to get rid of the top managers who sit there only because they are related to someone. The new director in charge of the merged team will do well if he takes a real look at the senior managers profiles and ask a question what these managers have done for Nakheel, in the past one year. And fire those who has been doing nothing but sitting heavy on the overhead expenditure for the company. Nakheel CEO should remember that good people make a good company. The company is responsible for the trauma faced by the 500 odd people who has been layed off, as well as the large number of people who lost jobs from consultants and contractors who were working on Nakheel projects. Who in Nakheel is responsible for this failure? It is not just the economic crisis, it is definitly a wrong vision. A wrong vision that has killed the inspiration of a bunch of professionals. The people who see the vision for Nakheel needs to change, if their vision is to inspire Humanity.