Do you think the financial situation and job market has stabilised in Dubai? | ExpatWoman.com
 

Do you think the financial situation and job market has stabilised in Dubai?

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EW EXPERT
Latest post on 06 March 2011 - 13:25

Really?

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EW NEWBIE
Latest post on 07 March 2011 - 20:02
No. I don't think so. For one thing, a large part of the economy of the UAE was based on real estate development - that market has not returned and won't return any time soon. It will take years for the UAE to structurally adjust. Second, the world economy is about to take another major hit with oil prices skyrocketing again. Because the UAE is tied to the the US through its fixed currency, this will negatively affect the UAE as well. Third, as I've mentioned even before the recent unrest and subsequent oil price rises, inflation is going to be a huge factor this year. It's going to make the UAE unlivable for a number of people and miserable for even more - leading to more defaults, lower rents again and the spiral will continue. It is going to be a very difficult year for the UAE. Guiness, lower rents where? We have just been gazumped in an offer on a villa, someone offered 10k more than the asking price! Rents are definitely NOT going down at the moment, maybe in the apt market but villas are holding price/creeping up.
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EW OLDHAND
Latest post on 07 March 2011 - 20:02
No. I don't think so. For one thing, a large part of the economy of the UAE was based on real estate development - that market has not returned and won't return any time soon. It will take years for the UAE to structurally adjust. Second, the world economy is about to take another major hit with oil prices skyrocketing again. Because the UAE is tied to the the US through its fixed currency, this will negatively affect the UAE as well. Third, as I've mentioned even before the recent unrest and subsequent oil price rises, inflation is going to be a huge factor this year. It's going to make the UAE unlivable for a number of people and miserable for even more - leading to more defaults, lower rents again and the spiral will continue. It is going to be a very difficult year for the UAE. High oil prices ultimately favour the UAE. As the price of oil rises, the dollar falls and some things become cheaper in the UAE comparatively - eg property, holidays. I agree that the worse scenario for Dubai is deflation of the property market with inflation of foodstuffs. High oil prices favor Abu Dhabi, not Dubai.
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EW GURU
Latest post on 07 March 2011 - 18:09
Wasn't there an article in gulfnews the other day stating that price of food items would be cut down by up to 40%? As a temporary measure. I am on the lookout too!
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EW MASTER
Latest post on 07 March 2011 - 18:01
If anyone sees these specials, please let us know! ;)
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EW NEWBIE
Latest post on 07 March 2011 - 17:58
Sorry, wrong paper - http://www.khaleejtimes.com/DisplayArticle09.asp?xfile=data/theuae/2011/March/theuae_March45.xml&section=theuae
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EW NEWBIE
Latest post on 07 March 2011 - 17:56
Wasn't there an article in gulfnews the other day stating that price of food items would be cut down by up to 40%?
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EW EXPERT
Latest post on 07 March 2011 - 17:45
No. I don't think so. For one thing, a large part of the economy of the UAE was based on real estate development - that market has not returned and won't return any time soon. It will take years for the UAE to structurally adjust. Second, the world economy is about to take another major hit with oil prices skyrocketing again. Because the UAE is tied to the the US through its fixed currency, this will negatively affect the UAE as well. Third, as I've mentioned even before the recent unrest and subsequent oil price rises, inflation is going to be a huge factor this year. It's going to make the UAE unlivable for a number of people and miserable for even more - leading to more defaults, lower rents again and the spiral will continue. It is going to be a very difficult year for the UAE. High oil prices ultimately favour the UAE. As the price of oil rises, the dollar falls and some things become cheaper in the UAE comparatively - eg property, holidays. I agree that the worse scenario for Dubai is deflation of the property market with inflation of foodstuffs.
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EW EXPERT
Latest post on 07 March 2011 - 17:43
. Its a country that relies solely on tourism for income in a time of world recession, Dubai continues to live on a knife edge. But Dubai does not depend soley on tourism. Dubai was built and gets most of its income from trade based on its fortunate geographical positon.
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EW OLDHAND
Latest post on 07 March 2011 - 09:19
No. I don't think so. For one thing, a large part of the economy of the UAE was based on real estate development - that market has not returned and won't return any time soon. It will take years for the UAE to structurally adjust. Second, the world economy is about to take another major hit with oil prices skyrocketing again. Because the UAE is tied to the the US through its fixed currency, this will negatively affect the UAE as well. Third, as I've mentioned even before the recent unrest and subsequent oil price rises, inflation is going to be a huge factor this year. It's going to make the UAE unlivable for a number of people and miserable for even more - leading to more defaults, lower rents again and the spiral will continue. It is going to be a very difficult year for the UAE.
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EW NEWBIE
Latest post on 06 March 2011 - 23:52
They wrongly believed that a steady stream of cheap labour from South Asia and educated workers from the West would magically create a vibrant economy in the heart of the Middle East with little intellectual or entrepreneurial effort on their part. Anyone could have seen that this fantasy land, with no middle class to speak of, little press freedom, a small industrial base, and a massively overbuilt core riddled with leverage, was headed to collapse. Its a country that relies solely on tourism for income in a time of world recession, Dubai continues to live on a knife edge.
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EW EXPERT
Latest post on 06 March 2011 - 18:20
As in westerners mainly being affected negatively? Yes, IMO well on the whole westerners have bigger salaries and better benefits so are a greater cost saving if made redundant
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EW EXPLORER
Latest post on 06 March 2011 - 18:19
As in westerners mainly being affected negatively? Yes, IMO
Anonymous (not verified)
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EW NEWBIE
Latest post on 06 March 2011 - 18:07
As in westerners mainly being affected negatively?
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EW EXPLORER
Latest post on 06 March 2011 - 17:58
I agree with BM. We had only person affected by the recession and she was working for Nakheel. Everybody else has held on, no changes in salary and quite a few have been promoted. I definitely see a nationality based pattern though. As in it's only really affecting the westerners? Yes IMO. Agreed
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EW EXPLORER
Latest post on 06 March 2011 - 17:48
I agree with BM. We had only person affected by the recession and she was working for Nakheel. Everybody else has held on, no changes in salary and quite a few have been promoted. I definitely see a nationality based pattern though. As in it's only really affecting the westerners? Yes IMO.
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EW NEWBIE
Latest post on 06 March 2011 - 17:47
For what its worth, a friend ( direct confirmation, not just friend of a friend thing) who works for a multinational, multi-services provider says their company is gearing up for an influx of at least a million people over the year into the UAE. They employ analysts all over the world and their market research points to Dubai picking up again. Not the 2007- 2008 levels but to years prior to that. A big customer of their's, Dubai's airline has upped their projections by 40 % for the year. Lots of new jobs in the market, just not the packages as before. Yet Airbus just confirmed that 30 major orders from UAE had been canceled. Sorry - Job market here is still highly unstable and I believe in the double dip theory so I think we will see more rocky times ahead. <em>edited by SwissGirl on 06/03/2011</em>
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EW GURU
Latest post on 06 March 2011 - 17:44
DH's industry is picking right back up. People sniffing round everywhere, promotions happening and bonuses on the way. My industry is pretty much the same.... Maybe less raise in pay but who's complaing, at least we all have our jobs.
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EW EXPERT
Latest post on 06 March 2011 - 17:40
I agree with BM. We had only person affected by the recession and she was working for Nakheel. Everybody else has held on, no changes in salary and quite a few have been promoted. I definitely see a nationality based pattern though. As in it's only really affecting the westerners?
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EW EXPLORER
Latest post on 06 March 2011 - 17:39
I agree with BM. We had only person affected by the recession and she was working for Nakheel. Everybody else has held on, no changes in salary and quite a few have been promoted. I definitely see a nationality based pattern though.
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EW EXPERT
Latest post on 06 March 2011 - 17:37
Personally speaking - job market sucks
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EW EXPERT
Latest post on 06 March 2011 - 17:36
mine, DH, relatives here, friends here. Just generally everyone. :) hmmmmmmmmmm, there's that bubble again.
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EW EXPERT
Latest post on 06 March 2011 - 17:27
most people we speak to/deal with's business is back to pre-boom levels (i.e. normal/stable) What industry are you talking about?
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EW EXPLORER
Latest post on 06 March 2011 - 17:25
With some very clever insight and marketing this would be a great time for the UAE to snare the Middle East markets in many things where previously other now not so stable countries were being used/considered. Agreed, several companies are setting up manufacturing facilities in the country which they wouldn't have previously. The only sticking point is the cost of labour. For companies that are labour intensive, the Gulf countries are not feasible at all. And the extra hidden costs ( taxes lol )
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EW EXPERT
Latest post on 06 March 2011 - 17:22
With some very clever insight and marketing this would be a great time for the UAE to snare the Middle East markets in many things where previously other now not so stable countries were being used/considered. Some gulf countries have really had some bad publicity and they are doing Dubai's marketers' for them!
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EW EXPLORER
Latest post on 06 March 2011 - 17:18
With some very clever insight and marketing this would be a great time for the UAE to snare the Middle East markets in many things where previously other now not so stable countries were being used/considered. Agreed, several companies are setting up manufacturing facilities in the country which they wouldn't have previously. The only sticking point is the cost of labour. For companies that are labour intensive, the Gulf countries are not feasible at all.
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EW EXPERT
Latest post on 06 March 2011 - 17:17
I've noticed the roads are busier. I have to go through the traffic lights near the Greens if I'm taking dd to school but she usually catches the bus. She started there in the "boom" and the first day we brought her the traffic was backed right up and several changes of lights were required before we got through. Took her once or twice last year when she missed the bus and there was virtually no delay at those lights. Had to take her one day last week and I was amazed at the traffic, as busy as if not busier than the boom. There are on-going roadworks there but if anything it's making it get quicker to get through than 3 years ago. I also noticed the traffic on Um Seqeim Rd from Al Khail roundabout to MOE is very busy once again. So from my experience on the roads, always at the same time, same place but on different dates, traffic is busier which to me indicates that things are picking up. <em>edited by A Rancher on 06/03/2011</em>
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EW EXPLORER
Latest post on 06 March 2011 - 17:15
Hard to say - may be a new recession on the way especially with the instability in many countries Not sure that you can read so much into hotels being busy - it has been half term -plus I was reading in one of the UK newspapers that some companies had rented rooms in Dubai to place staff during unrest in other countries
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EW EXPERT
Latest post on 06 March 2011 - 17:15
What and how are you basing these findings MB? Really how? From direct experience SW. I didn't just make it up. :D That would be a unique. lol
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EW EXPLORER
Latest post on 06 March 2011 - 17:14
My 2 cents... I think its definitely improved as it did get pretty bad there for a while. But I think that it'll be a few more years till most people can safely say they feel more secure in their jobs. I really think it depends on the industry you're in. You re right Shelly no-one feels safe - not sure if thats just here though - I guess the lack of transparency doen t help
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EW NEWBIE
Latest post on 06 March 2011 - 17:14
Something's changed. When we put our house on the market we put it on for sale at what we thought was a fair price and also listed it for rent, thinking we wouldn't get our sale price. There was an enormous amount of interest, on both fronts and we were pretty happy with the rent we thought we'd get. Then it was sold in 2 days. Then we had 2 higher offers. Definitely different from 12 months ago! PS The buyers were all end users, so they must have jobs to come to.
 
 

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