Arab News, Thursday, May 7, 2020 | Ramadan 14, 1441
Nakheel cuts salaries as pandemic hits Dubai retail and real estate
Emirates:
Dubai property developer Nakheel has cut salaries by as much as half as
the pandemic hits Dubai property developers and mall owners.
The salary cuts took effect from April 1 and varied according to employee grades
the developer said in a statement to Arab News.
Earlier Reuters reported the job cuts and the departure of former CEO Sanjay
Manchanda who stepped down on March 1 to pursue new opportunities.
“Nakheel, like all businesses across the globe, continues to be impacted by this
unprecedented situation, and must put measures in place to allow us to continue
to operate in the best interests of our stakeholders,” the developer said in a
statement. “We are extremely grateful to our employees for their dedication,
commitment and understanding during this difficult phase, which we can – and
will – overcome.” Earlier this year, the developer announced the appointment of
Mohammed Al-Shaibani as its new chairman following the departure of Ali Rashid
Lootah who had led the company since the last financial crisis when its debts
were restructured.
In recent years, the developer had increased its exposure to the retail sector
in a quest to boost recurring revenues and reduce its exposure to boom-bust
residential property cycles.
However, it was forced to close most of its malls after the government
introduced lockdown restrictions in a bid to curb the spread of the coronavirus
COVID-19.