Emaar Properties, the largest listed real estate company in the UAE, has decided to cut the salaries of its employees, and has announced the suspension of work on a number of major projects in Dubai due to the Corona virus pandemic, according to Bloomberg and Reuters agencies.
Bloomberg reported today, Monday, that Emaar Properties decided to reduce the salaries of workers in all its activities, at a time when the crisis of the spread of Corona Virus (Covid-19) has stopped projects and affected the real estate market and commercial centers in the Emirate of Dubai.
According to a letter sent by Chairman Mohamed Al-Abbar to the employees, the salary cuts went into effect on April 1 and until further notice, and cover all levels and entities of the company, according to Bloomberg reported.
According to the agency, the procedures include deduction of the salary of the Chairman of the Board of Directors by 100%, senior management at 50%, middle management at 40%, and junior employees by 30%.
Reuters also said it had seen a letter in which the chairman of Emaar said he had given up his salary and that the salaries of other workers would be cut by up to half.
Meanwhile, Reuters quoted sources as saying that Emaar Properties has suspended work on major projects in Dubai, amid a worsening real estate slowdown in the emirate due to the Corona virus pandemic.
Four sources said that Emaar had suspended projects in Dubai Creek Harbor, which is planned to house 200,000 people. This means stopping the work at Burj Dubai Creek Harbor, which is described as being higher than Burj Khalifa, the tallest building in the world today.
Emaar announced last month that it had suspended the construction of a luxury residential tower in Dubai's upscale neighborhood and closed several hotels temporarily due to the impact of the virus on tourism.
Emaar is one of the real estate development companies that had to re-examine their projects in light of the pressure of the spread of the Corona virus and the collapse of oil prices on their financial resources.
The real estate sector in Dubai has faced difficulties in the past ten years as a result of the repercussions of the global financial crisis and weak oil prices, which resulted in a glut in the supply of homes and offices in the emirate.
In the latest blow to the economy, the global outbreak of the Corona virus prompted Dubai to postpone the proposal to postpone the Expo, which was to host it in October, for a year.