Coronavirus: Emaar slashes salaries up to 50 pct, chairman forgoes pay

Emaar flags. (File photo: Reuters)

Dubai’s largest publicly-traded developer Emaar Properties PJSC cut staff salaries across all of its businesses as the coronavirus pandemic halts projects and weighs on the emirate’s property market.

The changes took effect on April 1 across all levels and Emaar Dubai entities until further notice, according to a letter sent by Chairman Mohamed Alabbar to employees and seen by Bloomberg.

Chairman’s salary: 100 percent reduction

Senior management: 50 percent reduction

Middle management: 40 percent reduction

Junior staff: 30 percent reduction

There will be no reduction for support staff working full time; staff not currently operating/on leave will receive full accommodation and medical as well as 15 percent of their cash salary

Other entities to receive 60 percent of full salary

A representative for Emaar didn’t immediately respond to calls and an email seeking comment.

Emaar is among developers in the Middle East’s business and logistics hub being forced to rethink projects as the pandemic and oil-price collapse squeezes finances. The coronavirus is aggravating a long property slump in Dubai, where oversupply and economic uncertainty have pushed down prices for years.

The developer has already suspended the construction of parts of its Dubai Creek harbor project and said three of its listed companies will not pay dividend for 2019 in “view of the current circumstances.”

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Last Update: Wednesday, 20 May 2020 KSA 09:57 - GMT 06:57
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