UAE Developer Tamweer Fires Half its Workforce

UAE-based developer Tamweer is to lay off around half of its workforce amid the meltdown in the Dubai real estate market caused by the global financial crisis. Tameer last week handed redundancy notices to around 180 of their 350 employees stating that Dec. 31 would be their last day at work.

“On Thursday we received notice that our last day would be Dec. 31,” said one employee, who asked not to be named. “It is very sad, a lot of people have lost their jobs.”

Staff said the cuts have been made across the board and not isolated to specific departments and further jobs cuts were expected due to the slowdown. “No one is buying or selling. Everyone wants to sell, no one wants to buy,” said another employee.

The developer’s projects include the Podium in Dubailand and Platinum Towers in Business Bay in Dubai, and Tameer Towers on Al-Reem Island in Abu Dhabi. The financial crisis has hit demand for real estate in Dubai from foreign investors, which make up a large percentage of buyers, while tightening liquidity has made home financing more difficult.

HSBC said in a report earlier this month that real estate prices in Dubai fell 4% between September and October, with the price of villas falling 19%. This is at odds with other sources – prices have already fallen by as much as 40% and the two main mortgage lenders in the Dubai market have both gone broke.

Other developers are in similar positions and also cutting jobs: Dubai-based developer Omniyat Properties confirmed it has fired nearly 35%  of its workforce; Dubai developer Damac said earlier this month it planned to lay off 200 employees, and Emaar Properties chairman Mohamed Ali Alabbar said on Monday there “might be” redundancies as a result of the slowdown in the market.