The Dubai-based developer is also suspending some of its most recent projects
Emaar Properties has cut executive and staff salaries across its businesses, as the COVID-19 pandemic halts projects and impacts revenue from malls and hotels.
According to a Bloomberg report citing a letter sent by chairman Mohamed Alabbar to employees, the changes took effect on April 1 for all of Emaar’s Dubai businesses and will continue until further notice.
As per the letter, Alabbar has forgone his salary, while senior management will take a 50% cut, while middle management and junior staff salaries will be reduced by 40% and 30% respectively.
There will be no pay cut for support staff working full time, while staff not currently operating/on leave will receive full accommodation and healthcare, as well as 15% of their cash salary, while other businesses will receive 60% of full salary.
Emaar has also suspended work on major projects in Dubai, as the COVID-19 pandemic further impacts the real estate market. Projects are said to have been suspended at Dubai Creek Harbour, a new development touted as offering homes to 200,000 people, the report said citing sources familiar with the matter.
Yesterday, Emaar sold 80% of its Downtown Dubai district cooling business to Tabreed for $675m. Tabreed’s biggest shareholder is French utility Engie.