LayoffBlog.com

February 12, 2009

Laid-Off Foreigners Flee as Dubai Spirals Down

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 make up 90 percent of the population here and 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.

Source: The New York Times

February 9, 2009

20,000 Indian workers to be flown out of UAE

Tens of thousands of Indian construction workers are being flown out of the United Arab Emirates by their employers on bulk-booked flights in March, it was reported on Sunday.

According to figures gleaned by the Indian Consulate in Dubai from Indian airlines, a total of 20,000 workers from several construction firms are leaving next month.

They are either being sent back home on long leave, or are being redeployed to work on projects in other Gulf countries, such as Qatar, according to a report in UAE daily Emirates Business.

Source: ArabianBusiness.com

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