Laid-Off Foreigners Flee as Dubai Spirals Down

[JODO 2]

By ROBERT F. WORTH

Published: February 11, 2009

DUBAI, United Arab Emirates — Sofia, a 34-year-old Frenchwoman, moved here a year ago to take a job in advertising, so confident about Dubai's fast-growing economy that she bought an apartment for almost $300,000 with a 15-year mortgage.

Now, like many of the foreign workers who make up 90 percent of the population here, she has been laid off and faces the prospect of being forced to leave this Persian Gulf city — or worse."I'm really scared of what could happen, because I bought property here," said Sofia, who asked that her last name be withheld because she is still hunting for a new job. "If I can't pay it off, I was told I could end up in debtors' prison."

With Dubai's economy in free fall, newspapers have reported that more than 3,000 cars sit abandoned in the parking lot at the Dubai Airport, left by fleeing, debt-ridden foreigners (who could in fact be imprisoned if they failed to pay their bills). Some are said to have maxed-out credit cards inside and notes of apology taped to the windshield.

The government says the real number is much lower. But the stories contain at least a grain of truth: jobless people here lose their work visas and then must leave the country within a month. That in turn reduces spending, creates housing vacancies and lowers real estate prices, in a downward spiral that has left parts of Dubai — once hailed as the economic superpower of the Middle East — looking like a ghost town.

No one knows how bad things have become, though it is clear that tens of thousands have left, real estate prices have crashed and scores of Dubai's major construction projects have been suspended or canceled. But with the government unwilling to provide data, rumors are bound to flourish, damaging confidence and further undermining the economy.

Instead of moving toward greater transparency, the emirates seem to be moving in the other direction. A new draft media law would make it a crime to damage the country's reputation or economy, punishable by fines of up to 1 million dirhams (about $272,000). Some say it is already having a chilling effect on reporting about the crisis.

http://www.nytimes.com/2009/02/12/world/mi...tml?_r=1&em

[Jasman0717 9]

Wow, this looks familiar

[caybee 21]

Interesting. My husband and I were talking the other day about the fact that we haven't heard or read much about how economies in the Middle East are doing. Seems things really are bad everywhere.

[SpiritAlight 1]

Wow.

Dubai had fallen off the money-train-radar.

Is there any place left that is not falling economically?

[Nagishkaw 510]

The government says the real number is much lower. But the stories contain at least a grain of truth: jobless people here lose their work visas and then must leave the country within a month. That in turn reduces spending, creates housing vacancies and lowers real estate prices, in a downward spiral that has left parts of Dubai — once hailed as the economic superpower of the Middle East — looking like a ghost town.

I kinda doubt that.

[Jasman0717 9]

Wow.

Dubai had fallen off the money-train-radar.

Is there any place left that is not falling economically?

Wonder if their ski slope is still open

[JSVP08 3]

Wow.

Dubai had fallen off the money-train-radar.

Is there any place left that is not falling economically?

Wonder if their ski slope is still open

its still open

i can relate the economic downturn on the road particularly at sheik sayed road.... it used to be jam-packed during rush hour but theres hardly anymore heavy traffic. either expats have moved out or surrendered their cars and now commute by car-lift or public transport. On the lighter side, it feels good to be home early and not stucked for an hour or more cursing the traffic. yep! recession continuous in dubai and everyone is taking a grip at whats in hand at the moment. (i think world-wide anyway)

[Robina 0]

Is it really that hard to find a job there? My fiance is wanting to move there because the situation in his home country (Pakistan) is very bad right now. That story makes it sound like there is not a job to be found. Will we be wasting our time and money going there to look for work?

Wow.

Dubai had fallen off the money-train-radar.

Is there any place left that is not falling economically?

Wonder if their ski slope is still open

its still open

i can relate the economic downturn on the road particularly at sheik sayed road.... it used to be jam-packed during rush hour but theres hardly anymore heavy traffic. either expats have moved out or surrendered their cars and now commute by car-lift or public transport. On the lighter side, it feels good to be home early and not stucked for an hour or more cursing the traffic. yep! recession continuous in dubai and everyone is taking a grip at whats in hand at the moment. (i think world-wide anyway)

[Time2gopeacefully 0]

Daaaaang!!!

[JSVP08 3]

Is it really that hard to find a job there? My fiance is wanting to move there because the situation in his home country (Pakistan) is very bad right now. That story makes it sound like there is not a job to be found. Will we be wasting our time and money going there to look for work?

Wow.

Dubai had fallen off the money-train-radar.

Is there any place left that is not falling economically?

Wonder if their ski slope is still open

its still open

i can relate the economic downturn on the road particularly at sheik sayed road.... it used to be jam-packed during rush hour but theres hardly anymore heavy traffic. either expats have moved out or surrendered their cars and now commute by car-lift or public transport. On the lighter side, it feels good to be home early and not stucked for an hour or more cursing the traffic. yep! recession continuous in dubai and everyone is taking a grip at whats in hand at the moment. (i think world-wide anyway)

i couldn't give you a definite answer there. it also depends on what kind of job or his line of interest/expertise. just a birds eye-view, the hardest hit are construction,realty/ properties- not totally dormant but a lot of terminations are coming from here (or so i read)and hotels (due to lack/ less tourists visiting now). I suggest he posts resumes at those popular job-search such as monsters,gulfjobs,clarence..etc... sometimes sheer luck is all it takes. Eventhen if he has the budget to go see for himself & do an actual application ....then why not. Tip: if he has friends here- it would help more for an in-house application than relying on job interview from posted or companies he has sent application (unless otherwise he is into managerial/CEO positions,i bet he can make ado with just ads or online application). I said bigger chance but not definite.

just my 2cents

Best of luck to all of us

Edited February 16, 2009 by veepee

[Der Bücherwurm 1]

Is it really that hard to find a job there? My fiance is wanting to move there because the situation in his home country (Pakistan) is very bad right now. That story makes it sound like there is not a job to be found. Will we be wasting our time and money going there to look for work?

The economy is bad worldwide. You won't find a country that hasn't been affected by the financial crisis. Sorry, but it isn't possible to run from it.

But I'm glad I got out of Dubai. It was already really starting to falter and empty when I left in December, '08. I wouldn't advise anyone to go to Dubai looking for work at the moment. Companies are continuing to lay off and the one's that aren't laying off have hiring freezes or have cut their current employees packages. Construction has nearly reached a standstill. RE prices have dropped considerably while many villas and apartments remain vacant. But even when the times were good in Dubai I wouldn't have recommended any Pakistani or other Asian going to Dubai or any other GCC country. Arabs consider Pakistanis, Sri Lankans, etc. to be the lowest of the low and they are underpaid, exploited and outright enslaved in places like the UAE and surrounding countries. Even during the economic bubble when construction was booming these wealthy construction companies would routinely import Pakistanis, tell them they had to pay off their visas (which is illegal, the employer is supposed to pay for the visa), house them in work camps in the desert with deplorable standards, work them 10-14 hours a day without adhering to safety standards and would go months without paying them. They would literally be unpaid slave laborers since everyone knows the govt. favors businesses over workers. So construction companies would wait til the laborers would go on strike after months of working long hours without pay. Then they would call the police to say that their workers were absconding. The laborers would then be arrested and then deported without pay. Seriously, the GCC countries are no place for Pakistani laborers that want to be treated like human beings or even paid for that matter.

[Der Bücherwurm 1]

The government says the real number is much lower. But the stories contain at least a grain of truth: jobless people here lose their work visas and then must leave the country within a month. That in turn reduces spending, creates housing vacancies and lowers real estate prices, in a downward spiral that has left parts of Dubai — once hailed as the economic superpower of the Middle East — looking like a ghost town.

I kinda doubt that.

What exactly is it that you doubt or judging by your siggie were you being sarcastic? Exactly when and how long was your stay in Dubai?

[JSVP08 3]

Is it really that hard to find a job there? My fiance is wanting to move there because the situation in his home country (Pakistan) is very bad right now. That story makes it sound like there is not a job to be found. Will we be wasting our time and money going there to look for work?

The economy is bad worldwide. You won't find a country that hasn't been affected by the financial crisis. Sorry, but it isn't possible to run from it.

But I'm glad I got out of Dubai. It was already really starting to falter and empty when I left in December, '08. I wouldn't advise anyone to go to Dubai looking for work at the moment. Companies are continuing to lay off and the one's that aren't laying off have hiring freezes or have cut their current employees packages. Construction has nearly reached a standstill. RE prices have dropped considerably while many villas and apartments remain vacant. But even when the times were good in Dubai I wouldn't have recommended any Pakistani or other Asian going to Dubai or any other GCC country. Arabs consider Pakistanis, Sri Lankans, etc. to be the lowest of the low and they are underpaid, exploited and outright enslaved in places like the UAE and surrounding countries. Even during the economic bubble when construction was booming these wealthy construction companies would routinely import Pakistanis, tell them they had to pay off their visas (which is illegal, the employer is supposed to pay for the visa), house them in work camps in the desert with deplorable standards, work them 10-14 hours a day without adhering to safety standards and would go months without paying them. They would literally be unpaid slave laborers since everyone knows the govt. favors businesses over workers. So construction companies would wait til the laborers would go on strike after months of working long hours without pay. Then they would call the police to say that their workers were absconding. The laborers would then be arrested and then deported without pay. Seriously, the GCC countries are no place for Pakistani laborers that want to be treated like human beings or even paid for that matter.

i agree when it pertains to menial jobs such as that....... hhhmm.... but i doubt if robina's SO is seeking for a laborer job.

just a thought...

[PlatyPius 5]

Wow.

Dubai had fallen off the money-train-radar.

Is there any place left that is not falling economically?

Wasilla Alaska.

[Der Bücherwurm 1]

Wow.

Dubai had fallen off the money-train-radar.

Is there any place left that is not falling economically?

Wasilla Alaska.

Yeah, but is there a moat around it?