Dubai World to Save $800 Million on Reorganization

Dubai World, the state-run holding company with $59 billion of debt and other liabilities, expects to save more than $800 million in three years after completing a business reorganization and cutting its workforce.

Dubai World, which controls port operator DP World Ltd., property developer Nakheel PJSC and asset management firm Istithmar World PJSC, reduced its staff by 15 percent to less than 70,000 globally as part of the reorganization, the company said today in an e-mailed statement. In the United Arab Emirates, the workforce was cut by about 25 percent.

Dubai, the second-biggest in size of seven emirates that make up the U.A.E., was hurt as the global credit crisis hit its property, financial and tourism industries. Dubai’s real-estate and state-run investment companies are seeking to cut expenses by putting projects on hold and reducing staff as the recession cut access to credit and demand for property declines.