Analysts warn of job cuts for UAE developers
Further job cuts were possible as projects reached completion, the company said.
“In general most developers are facing big issues as to how exactly they are to keep their businesses going as starting new residential or commercial projects is a non-starter because it is difficult to raise money from the banks,” said Neil. “The off-plan market is dead, and raising capital from the public is difficult in view of the weak equity market.”
UAE developers were badly hit by the global economic crisis, which saw property prices decline by around 60 percent as banks curtailed their lending and speculators left the market.
About half of construction projects in Dubai, the Gulf’s busiest builder until late-2008, were cancelled in the wake of the financial crisis, forcing firms to seek out work in new markets.
Nakheel, the developer behind Dubai’s palm-shaped island, cut more than 1,000 jobs during the financial crisis as it struggled to restructure $16bn of debt.
The HinduBy REUTERS (Reuters) -Dubai's real estate market showed little signs of any imminent upturn in fortunes as it remained sluggish during the final quarter of Real Estate Firm Sees Few Signs of Dubai ReboundReal estate firm sees few signs of Dubai reboundDubai's rents decrease by 41% y/y in 2009. -all 121 news articles »