“Even if it requires a bank loan”: Lulu Group rules out salary cuts, pledges timely pay

Retail leader Lulu Group has assured employees that salaries will remain unaffected despite ongoing regional economic tensions, reinforcing its commitment to workforce stability and financial security.

Chairman Yusuffali M.A. said the company will ensure full and timely payment of wages, even if it requires raising funds through bank loans. “Full salaries will be paid on time, every month, without any reduction or delay. Even if it requires taking a bank loan, we will meet this responsibility. Nothing will come in the way of our commitment to our people,” he said.

The announcement comes at a time when businesses across sectors are evaluating cost-control measures amid geopolitical uncertainty, positioning Lulu Group’s move as a strong signal of corporate resilience and employee-first leadership.

Reiterating the human impact behind the decision, Yusuffali added, “I fully understand that each of my colleagues has their own aspirations, needs, and responsibilities that depend on their monthly salary, and I will ensure that none of them goes through any hardship because of the current challenging times.”

Alongside payroll assurances, the group highlighted its continued focus on employee welfare, uninterrupted supply of food and essential goods, and maintaining price stability across the UAE and the wider region, key priorities as markets navigate volatility.

Drawing parallels with the Covid-19 pandemic, Yusuffali noted that the company had previously taken similar steps, including leveraging financial resources to protect salaries and employee well-being. He emphasised that Lulu Group has consistently stood by its workforce, recognising that financial stability is central to employees’ lives and responsibilities.

Other UAE-based companies are also adopting a similar stance. Danube Group has announced no job cuts, with chairman Rizwan Sajan stating, “We will not lay off any employees. All salaries will be paid on time. Our 6,000-plus employees are not just our workforce; they are our family.” Meanwhile, BNW Developments has also confirmed there will be no layoffs.

Government authorities, including the Abu Dhabi Department of Economic Development, have stepped up market monitoring efforts, conducting field visits to major retailers such as Lulu Hypermarket and Carrefour in Al Ain to ensure supply chain continuity and price stability.

Expressing confidence in the broader economic outlook, Yusuffali said, “As always I have full faith and confidence in the resilience of the local economy under the dynamic leadership of the visionary rulers here. This is a temporary phase and soon we will emerge much stronger.”

As uncertainty persists, Lulu Group’s commitment to safeguarding employee incomes while ensuring operational continuity underscores its position as a responsible and resilient corporate leader in the region.