(This article written by: Morwood Wilson for The MidEast News Source)
The UAE’s once bourgeoning media landscape has not proved immune to the global malaise affecting the publishing and broadcasting industries. The drastic cuts in regional advertising budgets have seen a number of companies forced to reduce employee numbers, as well as close magazines and even television channels.
The region’s biggest publisher, ITP, announced just three weeks ago that it was closing nine magazines and laying off 60 employees in a bid to streamline the organization and refine operations.
Among the ITP magazines that have been closed are consumer magazines Viva Girl and Kohl, while the majority of magazines closed were the business titles.
Fellow publishing house and another significant player in the market, Arab Media Group (AMG), has also made cuts within its operations, but remains reluctant to confirm numbers. Reports suggest that the number of staff made redundant could be around 300, with AMG currently employing around 2,000 people.
The company released a statement through its PR agency saying, “In response to the current global economic downturn and its impact on the media industry in the region, Arab Media Group has moved to implement a restructuring program across its businesses, aimed at increasing the organization’s operational efficiency through the consolidation of some of its support services.”
Dubai-based television station City 7 has also confirmed it has let go 90 employees, while retaining a skeleton staff of 50 people. The ownership said the layoffs came as a direct result of the economic downturn affecting the region.
Much of the region’s advertising budget has been lost due to the downturn in the property market which previously made up substantial swathes of advertising in newspapers, magazines and broadcasting.
Dubai Holding, the government-owned group with subsidiaries stretching from property to the media sector, announced plans to cut its marketing and advertising budget by 25 percent this year in response to the economic slowdown.
Other smaller publications to have closed in recent months include lifestyle magazines, The Buzz, Society Dubai, as well as industry-focused magazine, Your Business.
Radio station Coast FM also spent a number of days broadcasting solely music before its owners, Fujairah Media, entered into an agreement with Ajman Independent Studios. The first phase of the agreement sees Ajman Independent Studios’ Channel 4 radio network acquire exclusive sales and marketing rights to Coast FM.
One young journalist who had come to Dubai fresh from completing her masters found herself out in the cold when the cutbacks began.
“I think I noticed things changing a while before the actual layoffs. We were told that there was a hiring freeze as well as no annual pay rises,” she said.
Asking to remain anonymous in order to make sure of references, she has found that the recruitment market in the region is overflowing with a large number of journalists competing for a shrinking number of jobs.
“There are a lot of people looking for work and from what I can tell, for the most part, the majority of retrenched staff are intent on staying in Dubai until their visas run out or they find other work. Truth is the market is dead everywhere, and for many this is [still] better than where they are from,” she explained.
The lay-offs in Dubai come in stark contrast to reports that Abu Dhabi’s flagship newspaper, the National, is on the verge of launching an Arabic version newspaper.
The paper, which is bankrolled by the Abu Dhabi government, was begun less than a year ago and has recruited from across Europe and North America; its editor Martin Newland previously helmed the Daily Telegraph in the UK.
The source of these reports, who asked to remain anonymous, said that the staff had already been recruited and were already in place to roll out the new publication. It would be in keeping with the region’s emphasis on symbolism if the paper were to see the light of day at the beginning of April as the National celebrates its first birthday.
Abu Dhabi has made its intentions clear as it strives to become a force in the media sector with the creation of its own media hub named “twofour 5,” in direct competition with Dubai’s Media City. The zone was launched late in 2008 with partnerships being formed with, among others, CNN, Thompson, Reuters, BBC and Harper Collins.
Although many of these global players already have operations set up in Dubai, reports suggest that staffing and investment will be more substantial in the UAE capital.
Original Article Source: MidEast News Source
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