Dubai’s biggest bank cuts 300 jobs amid weaker economy

In this March 25, 2015 photo, tourists of different nationalities board a dhow for a cruise as the sun sets in the Marina neighborhood of Dubai, United Arab Emirates.

Dubai’s largest bank, Emirates NBD, has laid off around 300 people recently due to a weaker economy, a spokesman for the lender told Reuters.

Around 100 staff were cut from Emirates Money, one of the bank’s subsidiaries, as part of a merger. A further 200 staff were shed from Emirates Islamic, the lender’s Shariah-compliant wing.

The layoffs come not long several other local and international banks in the UAE cut staff. In total, 800 jobs have been slashed since November last year in the Gulf state's banking sector.

The National Bank of Ras Al Khaimah cut up to 250 jobs earlier this year, while Abu Dhabi-based First Gulf Bank laid off almost 100. HSBC and Standard Chartered have also reduced their headcount by 150 each.

Emirates NBD remains “very focused” on controlling expenses, chief financial officer Surya Subramanian said in Tuesday's earnings statement.

But the spokesman told Reuters the bank had no current plans for further staff cuts. ENBD employs more than 10,000 people, including around 2,000 at EI.

Established in 2008 primarily to provide loans to small and medium-sized enterprises (SMEs), Emirates Money’s workforce stands at around 270 people after the redundancies, he added.

SMEs form the engine of the local economy but many started to struggle last year when commodity prices began to sink, causing some to default on their debt.

(With Reuters)

Last Update: Wednesday, 20 May 2020 KSA 12:04 - GMT 09:04