Emaar merger risks job losses, project cuts

Emaar Properties’ merger with three state-owned property firms could spark further job cuts and project cancelations in Dubai’s beleaguered real estate market, as well as a wave of consolation among developers, analysts said on Sunday.

Emaar, the Middle East’s largest developer, announced over the weekend it is in advanced talks to merge with Dubai Properties, Sama Dubai and Tatweer - units of state-owned Dubai Holding - as the companies struggle amid a steep market downturn.

The downturn, set off by the global financial crisis, has seen property prices tumble more than 50 percent, billions of dollars worth of projects cancelled and thousands of people lose their jobs.