Dubai developer slashes 200 jobs

11 November 2008
 
The Damac Group, which owns Damac Properties, one of the largest property developers in Dubai announced today that it will cut 200 jobs, or 2.5% of its workforce, as a consequence of the economic downturn. The news is sure to add fuel to suggestions that the Dubai property market has run out of steam.
 
“This continuing global slowdown will inevitably lead all companies to review their staffing levels and recruitment requirements,” Peter Riddoch, Damac’s chief executive, said in a statement.

There are mounting signs that Dubai’s residential market is heading for a correction, or even a crash. A recent report from Morgan Stanley estimated a correction of at least 10% by 2010.

“I have little doubt that the United Arab Emirates is still better placed than many other nations to deal with the challenges ahead in the global market,” said Mr Riddoch.

The real estate and financial sectors led falls in the Dubai stock market, where the benchmark Dubai Financial Market General Index lost 7.29% on Tuesday, the worst performance of all regional exchanges. It has dropped over 60% so far this year.

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