ABU DHABI // Dubai Group, the financial services and investment arm of Dubai Holdings, has cut more than 70 per cent of its staff since the financial crisis hit last autumn, an official said. The disclosure comes as Dubai Holdings moves closer to consolidating its vast network of companies. "Obviously, we continue to face challenges and unfortunately we had to let more staff go," said Huda Buhumaid, the group's managing director of marketing and communications. "There have been waves of layoffs since last November."
Dubai Group has invested in a range of industries around the region and has taken stakes in companies that include Egypt's Commercial International Bank and Mazaya Saudi, a property developer. Ms Buhumaid said about 60 people were still working at Dubai Group compared with 250 last year. The most recent round of layoffs would have "minimum impact on the company", she said. "Every company is reviewing its operations and trimming."
Dubai Group, like many investment companies in the country, has been hard hit by the slump in global stock markets and the declining value of assets. Soud Ba'alawy, the group's executive chairman, said in May the company had hired an "international adviser" to look at its portfolio with an eye to reducing its holdings. "The challenge is to find which companies fit together, how can they complement their businesses and how we can fulfil regulatory requirements at the same time," Mr Ba'alawy said, according to an interview with Dow Jones Newswires.
Dubai Holding, which is owned by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, announced this year that it would consolidate the back offices of Dubai Group and Dubai Investment Capital to reduce costs. Ms Buhumaid said that process had not yet occurred. "The integration is being put on hold." Dubai Holding said last month it had completed the merger of its property and business park assets into two new units.
This new property group includes Dubai Properties, Sama Dubai and the property units of Tatweer. @Email:bhope@thenational.ae