How UAE companies cut costs during the downturn
Human resources, marketing and sales among the biggest victims of the bite
Human resources (HR) - 20.14 percent
\n\nMcGill's research showed that 20.14 percent of UAE businesses focused on cost-cutting during the recession.\n\nIt also showed that 18.51 percent of UAE firms will focus on cutting back HR spend in the future.\n\nThe company's analysis also found that 35 percent of firms in the emirates had invested between US$2m and US$5m in cost-cutting.
Marketing and sales - 11.21 percent
\n\nThe findings of the McGill report revealed that 10.30 percent of businesses in the UAE scaled back on marketing and sales budgets during the economic downturn.\n\nIt also showed that 17.96 percent will carry on focusing on cutting market and sales spend in the future.\n\nThe study also found that 54 percent of survey companies expected cost cutting measures to take effect within seven to 12 months.
Logistics - 8.47 percent
\n\nThe McGill report showed that 8.47 percent of firms in the emirates cut back on their logistics budgets.\n\nIt added that 15.47 percent of businesses in the emirates will continue to focus on trimming down logistical expenditure in future.\n\nHowever, 38 percent of UAE companies said that cost-cutting had had a poor impact on their profitability.
Operations - 6.86 percent
\n\nThe McGill report showed that 6.86 percent of companies in the UAE reduced their spend on operations during the recession. \n\nHowever, it added that this will rise to 9.39 percent of companies in the future.
Finance - 8.24 percent. \n\nMcGill's research revealed that 8.24 percent of businesses in the UAE have slashed their finance budgets, while 8.84 percent said that they will focus on this area in the future.