Coronavirus: UAE's Amanat Holdings confirms salary cuts, 'difficult initiatives'

Firm says pandemic causes 'operational, structural challenges'

  
United Arab Emirates Currency - Dirhams. Dubai, United Arab Emirates. Image used for illustrative purpose.

United Arab Emirates Currency - Dirhams. Dubai, United Arab Emirates. Image used for illustrative purpose.

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Dubai-listed Amanat Holdings has announced it is undertaking a series of “difficult initiatives” to drive business growth amid the coronavirus pandemic.

The company, which has investments in hospitals and schools in the region, said on Wednesday that the members of its senior management team have agreed to a voluntary reduction in salaries as part of the cost-cutting strategies.

It is also looking at other “opportunities” to further cut down on outgoing costs, as the health crisis has brought “operational and structural challenges” to the company.

“The crisis has brought on operational and structural challenges and we believe it is prudent to take difficult initiatives through these unprecedented times,” said Dr. Shamsheer Vayalil, vice chairman and managing director of Amanat.

“We believe this will allow us to emerge stronger, more efficient and financially sustainable. As a result, the senior management team has voluntarily reduced compensation among a series of initiatives which are being rolled out,” he added.

In a bourse filing to the Dubai stock exchange, the company said its new series of initiatives are designed to strengthen the company’s balance sheet and identify growth opportunities through its portfolio companies and new regional investments.

“The strategy’s top priority is to increase Amanat’s top line and to utilise cost reduction opportunities,” the firm said in a statement.

“The initiatives come during a time of uncertainty following the COVID-19 outbreak which has led to the need for enhanced efficiencies across the healthcare and education sectors.”

The company announced in April a cash dividend of 55 million UAE dirhams for its investors.

(Writing by Cleofe Maceda; editing by Seban Scaria)

cleofe.maceda@refinitiv.com

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