Shuaa Capital plays down reports of job cuts

Reports earlier this week indicated the bank had laid off 15 per cent of its workforce

Dubai investment bank Shuaa Capital has sought to downplay reports stating it had laid off 15 per cent of its workforce ahead of a possible sale of a stake in the company.

In a bourse statement on Wednesday, the bank said a “very limited number of staff were affected by the lay-offs”, revealing it had cut six employees that were “mostly in support functions”.

“This step does not have a significant impact on the company’s performance and balance sheet, and therefore we did not deem it necessitating disclosure to the market,” the company said.

“We are in fact currently in the process of filling several new positions in different business units.”

Earlier this week, Reuters reported that the bank had cut 15 per cent of its workforce of 70 employees.

Read: Dubai’s Shuaa Capital cuts 15% of staff

The newswire said Dubai Holding unit Dubai Group had mandated Emirates NBD to arrange a sales process for its 48 per cent Shuaa stake, worth about Dhs 315m ($86m), in April.

Shuaa said it was not in a position to comment about the transaction as it would be negotiated and consummated at the shareholder level.