Omniyat adds fuel to retrenchment fire |
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Thursday, Nov 20, 2008
Gulf News
Dubai: Developer OmniyatOmniyat
has joined the growing number of companies scaling down their human resources, with the retrenchment of nearly 100 employees over cash flow problems.
Recent reports put the number at 60, although a source told Gulf News yesterday that the number of those sacked was close to 100.
However, OmniyatOmniyat said the number was less than 100.
"An official spokesperson from OmniyatOmniyat rejects these claims ... the number is completely incorrect," OmniyatOmniyat said in an email response to Gulf News.
The liquidity crunch has begun to bite into Dubai's overhyped real estate market, where property prices and salaries of employees were highly inflated, analysts say.
"This is a natural and healthy correction," an analyst, requesting anonymity, said. "The only way to continue business is by cutting costs and sustaining businesses."
Caution
OmniyatOmniyat has already postponed the launch of several projects until "conditions can cope with them", said Alex Andar-akis, the company's managing director of sales and marketing.
While it is the property sector that has been most impacted, it is, in reality, the people who work for it who have been hit the hardest.
Earlier, DamacDamac had kicked off the trend by sacking 200 staff members, while Better HomesBetter Homes also cut down its human resources as the economic crisis filtered through to all sectors.
Ironically, the real estate industry in Dubai, which has been growing at a worrying rate, now seems to have been stopped in its tracks.
Developers, who, until last month, were ignoring global economic fears and continued to launch dazzling projects at sky-high prices, are now, perhaps, learning the hard way.
Buying and selling activities have slowed down in recent weeks, leaving developers unable to sell units.
Some have been forced to abandon their projects all together.
© Gulf News 2008. All rights reserved.
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Stories
Companies
| Company Name | Country | Industry |
| Qatari Diar Real Estate Investment Company | Qatar | Landlords and Developers |
| Emirates Integrated Telecommunications Company | UAE | Telecommunications Services |
| Global Investment House | Kuwait | Investment Banking |
| Bahrain City Center | Bahrain | Properties and Zones |
| Emaar Properties | UAE | Landlords and Developers |
| Dubai Islamic Bank | UAE | Banking |
| Al Rajhi Investment Group | Saudi Arabia | Investment Firms and Funds |
| Abu Dhabi Commercial Bank | UAE | Banking |
| Mubadala Development Company | UAE | Investment Firms and Funds |
| Doha Bank | Qatar | Banking |
Projects
| Project Name | Country | Sector |
| Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| Fujairah 2 IWPP | UAE | Power and Water |
| QP - Al Shaheen Refinery | Qatar | Oil and Gas |
| KNPC - Al Zour Refinery | Kuwait | Oil and Gas |
| Qatalum Aluminum Smelter | Qatar | Industry |
| WDEPC - Abu Qir Power Plant Expansion - Civil Works | Egypt | Power and Water |
| ADCO - SAS Field Development | UAE | Oil and Gas |
| Qatar Foundation - Sidra Hospital | Qatar | Real Estate |
| Dubai RTA - Dubai Metro - Purple Line | UAE | Infrastructure |
| Saadiyat Island Development - Saadiyat Resort and Beach Residences (Phase 1) | UAE | Real Estate |
Real estate salesmen are driving Mercedes c class- sales ManagersS class and the CEOs Bentley convertible. Sorry, whatever is surreal is surreal. Today 50% of Tameer were laid off and God knows who next. I am positive 70% of real estate people will go home with whatever commission they got in their pockets!
Professors at Harvard can not afford S class my friends!! The entire real estate market is seeing a major sharp correction bcz everything goes up fast drops fast.
Hats off to the Saudi bank Samba who predicted a sharp correction in the Dubai real estate market back in Sept 08. I predict a correction of 30-60% although it should be 70%. You can not have a villa on Emirates road with 5 M$$ after a 50% discount. It's still expensive. With this amount i buy a house in Beverly Hills where Paris Hilton would be my neighbor BBQing with her on Sundays! Where are Morgan Stanley and EFG Hermes with their 10% correction prediction in 2010???Samba beat you by far i am afraid!!!! You can not have 300% premium - not even 10%!!! If so, all factories and conglomerates are invited to shut down and convert to real estate!!! Some modesty and logic are required!!!!!!!!! [Report Abuse | Email to a Friend | Reply to this Comment]