iPhone | iPad
Android
Huawei
Nasser hospital in Khan Younis was attacked by Israeli army for over a week in February, saying Hamas was holding hostages there
KT APPDOWNLOAD
Project Cancellations Leave Arabtec Staff Insecure
DUBAI - A wave of project cancellations and delays are leaving staff at construction firm Arabtec uncertain over whether they will be made redundant.
A senior source at the company said that there was speculation that some 5,000 workers could be laid off in coming weeks.
The company has denied that there will be any mass redundancies and said it was normal to “reshuffle” staff if certain projects are cancelled.
The Khaleej Times has learned that at least three major projects have been delayed.
Among those that have been halted is Dubai Properties’ Mudon residential development near
Other projects that have also been put on hold include Zabeel Investments’
A spokesman for Zabeel Properties said, “Given the current global economic climate and specific pressures on property development in
Another project which could be cancelled is the CP03 apartment tower near Dubai Financial Centre. A source at Arabtec, who did not wish to be named, said, “Arabtec are still waiting for payment from the owner, which will determine if the project is continued or not. There has been no final decision yet, but project suspension is very possible.”
Chief Financial Officer at Arabtec, Ziad Makhzoumi, told the Khaleej Times that all of these projects were not major ones and would not hit the company’s ability to ride out the financial crisis.
The company expects that its Dh43 billion order book would cushion it against a slump in
However employees are concerned that if projects are cancelled they will not be able to be accommodated elsewhere within the company.
“If I receive a termination letter, I will have to see if I will get work in another project,” an employee of Arabtec said, on condition of anonymity. “People are being moved off their existing projects because the work is being scaled back or cancelled. But most of the other projects are fully staffed. It isn’t likely that I will be able to get work there.”
He added that there have already been 150 cuts to the team responsible for the Meydan racecourse, even though the project had not been hit by any delays.
Bajani said, “It is normal for projects to be wound down and things being cancelled, but there are no large-scale redundancies. This is part of the business. We move people around from one project to another all the time. This is part of the balancing act of the company.”
Arabtec share prices from year to date have fallen 75 per cent and 60 per cent of that plunge started in September.
“That was in the third quarter when investors realised that the world financial crisis will have a direct impact on the UAE property sector,” said Ali Khan, Executive Director at Arqaam Capital.
At close of markets on the first day of trading after Eid, Arabtec’s shares were down 3.71 per cent.
More news from
The President was speaking at a graduation ceremony at Morehouse College in Atlanta, Georgia
Martin Griffiths says battles near the Rafah and Kerem Shalom crossings in Gaza's south meant the vital routes are effectively blocked
The military launched a crackdown on the Rohingya minority there in 2017 which is now the subject of a United Nations genocide court case
Fresh signs of a cooling economy calmed inflation worries
Ferrari's Charles Leclerc took third in the seventh round of the season
Six people including 90-year-old former Air Force pilot Ed Dwight will blast off to space from the Launch Site One base in west Texas
Usyk is the first boxer to become undisputed heavyweight champion since Lennox Lewis beat Evander Holyfield in 1999