Dubai-based companies such as real estate developers and banks are also reducing staff as the Emirate grapples with regional geopolitical tensions, relatively low oil prices and an ongoing real estate and retail slump.
Monday 29, July 2019
Jumeirah Group has laid off hundreds of employees as a global slowdown and the on going geopolitical tension weighs on the operator of Dubai’s sail-shaped Burj Al Arab hotel, reported Bloomberg.
The state-owned luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs and most of the cuts were support roles.
According to STR, a global hotel data provider, Dubai hotels’ occupancy levels during the second quarter were at their lowest since 2009, while average daily rates and revenue available per room fell to 2003 levels. Similarly, new openings ahead of the 2020 World Expo have also led to oversupply.
Recently, the government introduced measures to stimulate the economy such as lowering certain business fees and issuing longer-term visas.