DIFC embarks on second round of redundancies

While there has hardly been an exodus of companies from the DIFC since the financial crisis hit, the slowing tide of new entrants has clearly taken its toll - it has embarked on a second round of redundancies.

Around 30-40 people have been made redundant this week, according to sources close to the situation. The cuts have hit at least four director-level staff, but predominantly affected Islamic finance specialists, those focused on bringing brokers to set up office in the centre and marketing employees.

The DIFC was not immediately available for comment.

However, the move underlines how the DIFC has been forced to pare back costs as financial services firms have pulled back from Dubai in the wake of the crisis.

In May, Bloomberg revealed that the financial centre had cut an unspecified number of staff as it was "reviewing its strategic focus" that will "result in an optimum utilisation of resources". Before the cuts began, the DIFC employed an estimated 400 people.

The DIFC's rental costs are notoriously uncompetitive (the second most expensive office space in Europe and the Middle East, according to CBRE research) and, while few firms have actually left, it has been <a href="https://www.zawya.com/story.cfm/sidZAWYA20100407042128/Reduction%20Of%20Costs%20On%20The%20Anvil%20At%20" target="_blank">forced to consider reducing the fees it charges clients.

It also re-hired Marwan Lufti, who was instrumental in creating the hub in 2004, as deputy chief executive to spear-head what it called the "next phase of growth".

The DIFC is not the only Gulf financial centre to be showing signs of strain. In April, the Qatar Financial Centre made about a third of its 100 staff redundant as part of a strategic overhaul.