Dubai’s leading real estate developer is implementing a salary reduction across the board in an effort to mitigate the economic impact of coronavirus (Covid-19)
While the Emaar chairman, Mohamed Alabbar, will take a 100 per cent pay cut, the rest of the company will see a reduction ranging from 15 to 50 per cent.
In a letter to its employees, obtained by media sources, Alabbar announced that these changes will take effect from the beginning of this month (April 1, 2020) and the new salary structure will be adopted across all levels and Emaar Dubai entities.
As per the letter, the middle management will see their salaries reduced by 40 per cent and the junior employees will face a 30 per cent salary cut.
The support staff, who are working full-time during the period, will not face any cuts, while those employees on leave or not currently working will get 15 per cent of their salary plus accommodation and medical benefits.
“I would like to reassure that our people remain on top of our priorities. Taking all circumstances into consideration, I remain optimistic and I am confident that this is only a temporary phase. Until then we remain grateful for the blessings we have today – our safety, our wellbeing and our families,” Alabbar was quoted as saying in the letter, adding that they would prevail together, “rising as one team, one family”.
Emaar Properties’ performance in FY 2019 was resilient, recording a net profit of AED 6.200 billion (US$1.688 billion) as compared to a net profit of AED 6.139 billion (US$ 1.671 billion) in FY 2018. Emaar recorded revenue of AED 24.586 billion (US$ 6.694 billion) for 2019.