DUBAI: Dubai-based Emaar Properties, which on Monday missed analysts profit forecasts, said hiring staff was driving up costs as it expands into countries such as India and Egypt.
The largest Arab property developer earlier Monday said second-quarter net income rose 1.3 percent to 1.56 billion dirhams ($424.3 million), below analysts forecasts which ranged from 1.79 billion to 1.98 billion.
Costs more than doubled to 2.65 billion dirhams, it said.
We have to spend money first on staff and service centers, Issam Galadari, Emaar s managing director for international development, told Reuters by telephone in Dubai.
Overseas expansion would continue to push costs up until they stabilize next year, he said. We opened in Jordan, in Turkey. God willing, we will open in Morocco in a month, also in Karachi, Galadari said.
In India, Emaar was competing with other companies for staff who often get several job offers, fuelling demands for higher pay, Galadari said.
Emaar operates in 16 countries in Asia, the Middle East and North America.
In Dubai, where the company has between 600 and 700 people, pressure on staff costs is growing. All are asking for a raise as the cost of living is getting higher, Galadari said.
