02-26-2009, 12:00 AM
Dear Members,
In this financial crisis UAE economy is clearly divided in to two parts Abu Dhabi (including Ras Al Khaimah / Um Al Qwain / Fujerah ) and Dubai ( including Sharjah / Ajman).
This is Dubai economy that suffers most whereas Abu Dhabi is not effected as compare to Dubai. Abu Dhabi is heavily dependent on Oil and investments he made throughout the world ( especially in Africa / South America). Oil prices are increasing and economies of North America and Africa are booming. Brazil rated Ist in the economy growth. Whereas Sudan and Tanzania are the investors favorite for Construction industry.
Ras Al Khaimah economy is dependent on export and supply of non-metal minerals for cement and construction industry. RAK Ceramic world largest and various steel industries also strengthen the economy of the state.
As a matter of fact people are arriving daily to UAE , population is increasing on daily basis requiring shelter , food and necessities.
So the demand of houses , food and others related item will not decrease.
Dubai is the worst effected state in this whole scenario, the housing industry bubble is burst and supply is more than demand. Due to some ( in my opinion) wrong decisions like cancellation of Jabel Ali Airport project and water front project ( World largest triple the size of Hong Kong) effects badly to the common person.
But the cultural and economy of UAE is very much different from others country. Usually in a countries like Pakistan , UK ,USA the enterepenaures are national they put the capital as they have to live there and they want to do business in the country they lived. In UAE the situation is reversed 80% of the total population is not the citizen , owners of the companies are not the real owners but only having the Power of Attorney. The situation will become drastic if the trust between the local and expatriates shatters.
Govt knows these things very well and they are on quick moves to overcome the economy crisis.
Announcement of mega project like Abu Dhabi Metro , and RAK ( funded by Abu Dhabi)train system will increase the efficiency of the econmy.
Abudhabi has sufficient capital to strengthen the Dubai economy ( both Kings are cousin).
Majority of the layoffs are seen in Nakheel Properties and Dubai Properties ( Water front project / Jabel Ali Airport Projects). As you can assume the strength of workers for these projects.
Regarding the points raised by others respected members please note that
the more any country economy dependent on USA, the more it suffers.
Dubai airport is the second busiest airport in terms of passenger handling.
90% of the people laid -off got the job in UAE market. ( except for construction workers). Construction workers have to go home at the end of projects either this year or next. Construction industry has its limits.
Yes, job is more at risk in this period but people having multiple experience or can do multiple job task are less to worry.
Property prices are not reduced by 40% but the profit on property are reduced.
If some one visited Global Village on Friday 20 second last day of the event . He would not never think about the crisis, when you parked your car 2 Km away due to full parking, stand in que for getting entry tickets and waited for 20 mins to got the table at Bundo Khan restaurant you wouldn't believe that city is in financial crisis.
Majority of the Indians ( more than 50% of the total expatriates) always wanted to go back to their home - currency conversion rate is not in their favour and construction industry in their home country is paying healthy salaries. Nowadays you are unable to hire skilled workers from India.
The workforce coming from India/ Sri Lanka / Pakistan having experience in Sales joins Consumer Banking , as the other industries usually requires arabic and uae driving license. And DSA will become the only choice for them. 90% layoff in Finance Industry are from DSA/ consumer banking.
I just reflect the positive side of the UAE economy and try to show the other side of the pictures. I know that real crisis is for the one who is fired from the job, but still I believe that people who are managing their budget well and live within their salary limits are less effected. We all here to work and save money , if we start living the lavish life and spend whole ( or more than whole) what we earned then we will be in trouble whatever the economy situation.
In my opinion worrying is the psychological effect rather than the crisis itself. ( In respect of UAE economy)
Best Regards
In this financial crisis UAE economy is clearly divided in to two parts Abu Dhabi (including Ras Al Khaimah / Um Al Qwain / Fujerah ) and Dubai ( including Sharjah / Ajman).
This is Dubai economy that suffers most whereas Abu Dhabi is not effected as compare to Dubai. Abu Dhabi is heavily dependent on Oil and investments he made throughout the world ( especially in Africa / South America). Oil prices are increasing and economies of North America and Africa are booming. Brazil rated Ist in the economy growth. Whereas Sudan and Tanzania are the investors favorite for Construction industry.
Ras Al Khaimah economy is dependent on export and supply of non-metal minerals for cement and construction industry. RAK Ceramic world largest and various steel industries also strengthen the economy of the state.
As a matter of fact people are arriving daily to UAE , population is increasing on daily basis requiring shelter , food and necessities.
So the demand of houses , food and others related item will not decrease.
Dubai is the worst effected state in this whole scenario, the housing industry bubble is burst and supply is more than demand. Due to some ( in my opinion) wrong decisions like cancellation of Jabel Ali Airport project and water front project ( World largest triple the size of Hong Kong) effects badly to the common person.
But the cultural and economy of UAE is very much different from others country. Usually in a countries like Pakistan , UK ,USA the enterepenaures are national they put the capital as they have to live there and they want to do business in the country they lived. In UAE the situation is reversed 80% of the total population is not the citizen , owners of the companies are not the real owners but only having the Power of Attorney. The situation will become drastic if the trust between the local and expatriates shatters.
Govt knows these things very well and they are on quick moves to overcome the economy crisis.
Announcement of mega project like Abu Dhabi Metro , and RAK ( funded by Abu Dhabi)train system will increase the efficiency of the econmy.
Abudhabi has sufficient capital to strengthen the Dubai economy ( both Kings are cousin).
Majority of the layoffs are seen in Nakheel Properties and Dubai Properties ( Water front project / Jabel Ali Airport Projects). As you can assume the strength of workers for these projects.
Regarding the points raised by others respected members please note that
the more any country economy dependent on USA, the more it suffers.
Dubai airport is the second busiest airport in terms of passenger handling.
90% of the people laid -off got the job in UAE market. ( except for construction workers). Construction workers have to go home at the end of projects either this year or next. Construction industry has its limits.
Yes, job is more at risk in this period but people having multiple experience or can do multiple job task are less to worry.
Property prices are not reduced by 40% but the profit on property are reduced.
If some one visited Global Village on Friday 20 second last day of the event . He would not never think about the crisis, when you parked your car 2 Km away due to full parking, stand in que for getting entry tickets and waited for 20 mins to got the table at Bundo Khan restaurant you wouldn't believe that city is in financial crisis.
Majority of the Indians ( more than 50% of the total expatriates) always wanted to go back to their home - currency conversion rate is not in their favour and construction industry in their home country is paying healthy salaries. Nowadays you are unable to hire skilled workers from India.
The workforce coming from India/ Sri Lanka / Pakistan having experience in Sales joins Consumer Banking , as the other industries usually requires arabic and uae driving license. And DSA will become the only choice for them. 90% layoff in Finance Industry are from DSA/ consumer banking.
I just reflect the positive side of the UAE economy and try to show the other side of the pictures. I know that real crisis is for the one who is fired from the job, but still I believe that people who are managing their budget well and live within their salary limits are less effected. We all here to work and save money , if we start living the lavish life and spend whole ( or more than whole) what we earned then we will be in trouble whatever the economy situation.
In my opinion worrying is the psychological effect rather than the crisis itself. ( In respect of UAE economy)
Best Regards
