Dubai Islamic Bank is preparing to lay off nearly half of its employees in one of its affiliated banks through a layoff plan due to financial pressures.
This will be done by laying off about 500 employees at Noor Bank, which it recently acquired, as part of plans to reduce costs in both banks.
Reuters reported that three sources mentioned that the start of layoffs will take place after the completion of the meetings between the managers of Dubai Islamic Bank and the employees of Noor Bank.
Dubai Islamic Bank has more than nine thousand employees, while the number of permanent employees in Noor Bank ranges between 1,200 and 1,400 employees.
The specialized reports confirm that the economic crisis in the UAE is exacerbating and escalating to record levels. It also warned it could reach the point of the explosion, noting that the evidence is the reduction in the number of employees and banks operating in the country.
It is important to note that a unit of the International Standard Chartered Bank had already cut more than 100 jobs in the retail activities sector in the UAE in August, as official data show that the banking sector and many activities are exposed to many pressures.
Fitch's international credit rating agency also confirmed that UAE banks have not fully recovered from the real estate crisis that struck Dubai in 2010, noting that “bank loans in the second and third stage (which have been restructured) are already high, with an average of between 15 and 20% of the total Loans that are likely to increase”.
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