14 November 2008
Emirates NBD has completely denied reports in yesterday's press that it had stopped lending to expat employees of real estate companies on fears of job losses in the sector.
The reports cited a leaked internal email as saying "in view of the current market scenario, it has been decided to suspend retail credit facilities to expatriate employees working with... mentioned employers, due to possible restructuring, lay offs and job loss".
The internal email reportedly went on to list those employers as Tamweel, Amlak, Damac and its subsidiaries, Emaar, Nakheel, Sama Dubai, Dubai Properties, Union Properties and KM Properties.
"Sometimes people exchange emails and write proposals, and so on. We usually don't comment on internal communications. But I can categorically say that we deny the content and the context of this report," an Emirates NBD spokesperson told 7DAYS.
A statement from the bank added: "Emirates NBD lending policies are refined routinely in line with business priorities, market dynamics and what preserves the interest of our shareholders and customers.
"We remain focused on our consumer lending business, which continues to support the UAE economy and contributes in the financial performance of the group."
A number of property developers have announced possible or probable job cuts in the last week, as mortgages become more difficult to obtain and real estate demand slows.
Emaar Properties has said it will be reviewing its recruitment policies.
"To address the new challenges we face, it is important to reorient our growth strategies and align our business model to tackle new realities," a company statement said.
Damac has said it will cut 200 jobs and reports yesterday said Omniyat Holdings is to axe around 60 staff members.
Dubai Properties has issued a statement denying there have been any redundancies, or any plans for job cuts.
"There is no truth to the rumours about employee layoffs at DPG. Dubai Properties Group has robust business plans for the year 2008-2009," said the statement.
Nakheel also denies job cuts, saying it "has not made any of its staff redundant nor has it put a freeze on recruitment".
Meanwhile, Emirates NBD has also said it may guarantee capital that investors lend to Dubai developers as the UAE's biggest bank reached the limit it can provide to property companies, threatening the city's real-estate projects.
"The idea is to increase your exposure and help stabilise a market that you are already invested in, reaping the benefit when the market recovers," Michael Preiss, Emirates NBD's chief investment officer said yesterday.
"It is our responsibility as the biggest bank in Dubai to keep up the umbrella when it is raining."
Emirates NBD has completely denied reports in yesterday's press that it had stopped lending to expat employees of real estate companies on fears of job losses in the sector.
The reports cited a leaked internal email as saying "in view of the current market scenario, it has been decided to suspend retail credit facilities to expatriate employees working with... mentioned employers, due to possible restructuring, lay offs and job loss".
The internal email reportedly went on to list those employers as Tamweel, Amlak, Damac and its subsidiaries, Emaar, Nakheel, Sama Dubai, Dubai Properties, Union Properties and KM Properties.
"Sometimes people exchange emails and write proposals, and so on. We usually don't comment on internal communications. But I can categorically say that we deny the content and the context of this report," an Emirates NBD spokesperson told 7DAYS.
A statement from the bank added: "Emirates NBD lending policies are refined routinely in line with business priorities, market dynamics and what preserves the interest of our shareholders and customers.
"We remain focused on our consumer lending business, which continues to support the UAE economy and contributes in the financial performance of the group."
A number of property developers have announced possible or probable job cuts in the last week, as mortgages become more difficult to obtain and real estate demand slows.
Emaar Properties has said it will be reviewing its recruitment policies.
"To address the new challenges we face, it is important to reorient our growth strategies and align our business model to tackle new realities," a company statement said.
Damac has said it will cut 200 jobs and reports yesterday said Omniyat Holdings is to axe around 60 staff members.
Dubai Properties has issued a statement denying there have been any redundancies, or any plans for job cuts.
"There is no truth to the rumours about employee layoffs at DPG. Dubai Properties Group has robust business plans for the year 2008-2009," said the statement.
Nakheel also denies job cuts, saying it "has not made any of its staff redundant nor has it put a freeze on recruitment".
Meanwhile, Emirates NBD has also said it may guarantee capital that investors lend to Dubai developers as the UAE's biggest bank reached the limit it can provide to property companies, threatening the city's real-estate projects.
"The idea is to increase your exposure and help stabilise a market that you are already invested in, reaping the benefit when the market recovers," Michael Preiss, Emirates NBD's chief investment officer said yesterday.
"It is our responsibility as the biggest bank in Dubai to keep up the umbrella when it is raining."
© 7Days 2008
