Does outsourcing projects cover the drop and downsizing trend in Dubai? It would be more transparent to face the problem, accept it and propose solutions and initiatives.
"Arabec finalizes Russian contract - sees no need for job cuts
Ziad Makhzoumi, Arabtec’s Chief Financial Officer, said yesterday the Russian Okhta Centre Project is on track and the contract is being finalized. Makhzoumi added that there might be changes in the details of the project, but the total size and value of the project will remain unchanged. Makhzoumi also said three projects from the company’s backlog in Dubai have been suspended and may end up being resumed, cancelled, or rephased, adding that the total value of the three suspended projects is less than AED3 billion. Makhzoumi also reaffirmed that Arabtec has no immediate need for job cuts and the effect of project suspension will only lead to the shifting of labor to other ongoing projects in need of labor. Makhzoumi added that the suspension of the three projects will have no effect on Arabtec’s fourth quarter results and reaffirmed an expected revenue of AED8.8 billion for 2008 with expected profits of AED1 billion for the year."