Dubai’s real estate developers cut jobs in past weeks
Nakheel PJSC and Majid Al Futtaim Properties LLC, two of Dubai’s biggest real estate companies, cut jobs in the past weeks, people familiar with the matter said.
State-controlled Nakheel, the developer of palm-shaped islands that teetered on the brink of default almost a decade ago, dismissed about 300 employees, the people said, asking not to be identified because the matter is private. It was part of the company’s plan to consolidate its operations, one of the people said.
“We continue to enhance efficiencies by implementing policies, such as outsourcing non-essential positions that are in the best long-term interests of our stakeholders,” Nakheel said in a statement.
Dubai property market’s long decline since a peak in October 2014 has defied all predictions of a rebound. S&P Global Ratings said last month it expects prices to fall as much as 10% this year.
Majid Al Futtaim Properties, the privately-held developer of the Mall of the Emirates that features indoor skiing, cut more than 100 jobs, according to people with knowledge of the matter. The company is outsourcing project management, resulting in lower internal headcount, one of the people said.