Deyaar axes jobs
Deyaar cuts its workforce by 20 percent after it posted a 74 percent drop in third quarter profits. Deyaar has seen better days.
October 26, 2009 3:22 by Dana El Baltaji
In June of this year, he stepped down as chairman of the property developer, and like his predecessor, he failed to explain his decision. A month prior to his resignation, the Dubai Government replaced him as director general of the emirate’s finance department, where he was overseeing Dubai’s $20 billion bond program, and gave him a post at the Ruler’s Court for Foreign Affairs. He was later relieved of that post.
He also stepped down from his positions at the Dubai Islamic Bank, National Bonds, Taaleem and the Ruler’s Court for Foreign Affairs; the latter three are government entities.
Naturally, his fall from grace did little to help Deyaar’s ailing reputation, especially given that around the time of his resignation, two ex-Deyaar employees were facing fraud charges.
At the time, the head of the team of prosecutors, Mohammed Mustafa Hussain, said that the ex-employees crimes were part of a complicated web of fraudulent activity at the developer.
The court cases have damaged consumer confidence in the developer; however, Deyaar’s current CEO, Markus Giebel, has helped improve the company’s profile by keeping the media abreast of Deyaar’s plans.
At Cityscape Dubai 2009, the company unveiled its handover schedule for the following year. According to Giebel, the announcement “reinforces our continued commitment to transparency and customer service excellence.”
Compared to the impregnated silence hanging over most developers in Dubai, Deyaar’s announcements are almost revolutionary. Unfortunately, however, they don’t eliminate the panic investors might feel as a result of the job cuts.
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