EMPLOYMENT SLUMP IN UAE

Society Business and Career
1

Last Year when some of big Financial Institions declare themselves defalters in USA , then there was a Huge slump in employement in USA , and Thousands of people lost their jobs.
after some months the same thing happened in UAE , Especially in Dubai , when some of big Real State players were not financed by their banks due their insufficient funds assests and liquidaties.
Cosequently EMAAR, NAKHEEL like prominant Real State operators stoped their projects , and one analysis about 80% projects were paused , the consequences were clear that , Construction companies/Consultants/Supplirs also lost their jobs as their source of funding was abonded.
as result many Employers sent their work force terminated or on long leave.

The situation still prevails and people who come from out side for job hunting finds no job.

How is the situation in your circles and region.?

2

More people out of jobs in USA than all of UAE's Population............:(

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Re: EMPLOYMENT SLUMP IN UAE

I always had a feeling that UAE, and specifically Dubai's economy was very fragile. Not having resorted to a diverse economic base, and deliberately avoiding the production of exportable goods and services, UAE has become a massive consumer economy that produces very little on its own. The assumption that Real Estate and mega construction projects would help build an economy is flawed, as infrastructure-building should be an effect (need based) of the cause (booming economy and growing population), rather than a cause in itself. I have a very bad feeling about Dubai, and that it may get worse.

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Re: EMPLOYMENT SLUMP IN UAE

I imagine being jobless in Dubai is probably more devastating than being jobless in the USA. For example, a good number of employees are Pakistanis. When these people were laid off, they have to go back back home. Some people who could afford to probably bought those free hold properties and got residence visas, so maybe they were safe, but for the greater majority it must have been really bad. Not everyone is an MBA, CPA, or similar professional, so finding a job back home is another challenge, especially for people who have been out of touch with the Pakistani job market for a while.

Just my opinion of how I see things, and this can apply to any country.

5

Now they've even stopped issuing residence visas on the basis of property ownership. The property developers have found an easy way out, saying that the residence visa is subject to government approval. And the government has just stopped approving those visas now. How convenient, isn't it?

So now you have people who own property in the UAE, but need a visit visa to come and use it. Ridiculous if you ask me. Pakistanis have also bought a lot of properties hoping to secure a residence visa through that, especially in Ajman.

Timepass- December 2012
6

Wasn't issuing resident visas the plan all along? I thought the plan was so that the people with money can come to Dubai, and live in Dubai spending lots of money in the process. Is this just for Pakistanis, or everyone?

What does the property developer have to lose if the owner has a visa or not? I don't understand the politics behind all this.

7

That was the initial plan and they lured a lot of people into investing in the UAE using that as an argument.

It's not the property developers who used to issue those visas. It was the government. Now the government has decided to stop issuing those "property visas". Don't ask me why, I don't know.

Those investors are furious now of course and when they go and complain to the property developers, they are directed to those clauses in their contracts that say "Subject to Government approval". Therefore the developer has no legal obligation to fight for those visas.

Timepass- December 2012
8

I was expecting the balloon to burst in mid 2007, and when it didn't, and local people (Kuwaities) made fun of my fears, I got even more spectacle about the whole Dubai-fever, to me it was the bigger the balloon the bigger the damage.

I don't know if iam 100% right here, but Dubal alone has spent/debt 7 times more than the total value of the central bank of UAE.

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Re: EMPLOYMENT SLUMP IN UAE

Today in Kamran Khan Program , he was saying Pakistanis lost about 5 to 6 billion dollars they have invested in Dubai specially in Real Estate and people are running from Dubai etc. The recent Capital Flow from Pakistan mostly went to Dubai Real Estate and Dollar jumped from 60 to 80 :smack:

Timepass- December 2012
Timepass- December 2012
Timepass- December 2012
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Re: EMPLOYMENT SLUMP IN UAE

^^^I really have no sympathy with the people who invested in Dubai's real-estate market, everything was there to tell that it is going to burst, but people were blind and now they lost millions to Locals and now yelling.

Anyway this is not end of the road, infact when everyone fleeing UAE over company is opening up a subsidiary in Abu Dhabi. Believe me this subsidiary is result of govt. acts to rebuild the economy to don't panic, things will start getting better by the end of year.

Birth Stories
11

You'd have to be an idiot to "invest" in Dubai's real estate market. The only people that made their money were in the flipping business: buy 3-4 properties underconstruction and sell to a speculator on profit. When everyone's buying a home to flip (not to live in) you're bound to get screwed.

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I doubt it, please tell me what economical model UAE follows? Money coming from natural resources - invest and boom !..

This is not the way to run a country, i seriously believe Dubai will never get to where it was 1 and half year ago. US Stocks just touch 7600. An all time decade low, credit markets are dried up, an huge restructuring is happening in the global financial system. Its like everything is back to their real value !

What is Dubai value? a small island, with natural resources for next two decades only? No industry, my friends who live in Dubai call it next Macao or an Ayaashi ka Adaa !

13

UAE has seen realtors playing the investments game with other people;s money
This is what is going on.

a building has 20 flats, realtor gets a group of 15 people to buy them at 150K and then claims that the going rate for something like this is 220K, because one of his buddies would buy it and sell to another buddy at that price or convince somone that it is a good price and things are going up. Now when the other ppl want to sell, realtor will keep telling them no, dont go to 170K (which btw is the sensible price) and instead tell em to just wait and keepn it at 220K, now the flats that the realtor and his pals have, they will sell them, and show a new group of fools that look everyone is sellign at 220, we can sell to you for 190 because of some BS reason, the guy gets in they make a profit..now the rest of the ppl whatever price they sell at, realtor still gets a commission. oh and when ppl who are overstretched in speculative buying to flip get in trouble because payment is due and they cant pay and risk losing the property, then realtor produces somsone who will buy it from them for 120 because market is overbuilt and this way the guy only loses 30K on their investment and walk away with a smaller loss..and then the realtors sell it to the ext fool at a higher price.

it gaming the system..its happening big time, I know victims..be very careful.

if ppl have mutiple properties, get rid of em, and consolidate..if u have a property fully paid that u can rent, thats good just hold on to it for sometime, if u are in a leveraged position, take your losses on some properties now, and consolidate to have one property paid off and in your possession, or walk away.

14

As far as Dubai is concerned it was fish-market some 20 years ago, and it will be the same... I am talking about the UAE market, People of Abu-Dhabi do have some oil ( economy in this part of world is selling oil and getting money).

Dubai was a classic example of artificial economy built on the basis of Media campaign, the only good thing they had was emirates airline, Dubai was a consumer economy, and yes when the economy was based on consumable items then we get prostitution and other evils along with the good ones.

The problem is not that Dubai have sunk or not, or UAE will sustain or not or which GCC country to go busted... the problem here is the mentality of Expats, Specially from Pakistan.

We leave our country and reside in UAE or any other place, try hard to make it our home, and never look back to develop our home. Thats were the problem is, I have not seen any Pakistani packing his stuff to leave any country for good, all they do is complain the country the reside in and complain of their home country as well.

If only they have planned their visit in the foriegn countries then episodes liek Dubai may not have effected them at this extent.

Now How the UAE market will comeout of this mess, The other day i had meeting with the chairman of one of the local banks, who happend to be a active member of Royal Family, his stance was, let everyone hit the rock bottom and we will build everything from scratch. On the other hand the business class, is looking ways to work out the situation as all the businesses are somehow related to each other, if one industry go bust then its just the matter of time for others.

In Dubai or UAE, the Real Estate has been hit, Dubai's economy was based on real-estate but also not to forget that there are other fields where the Dubai have made remarkable achievements, like DP- Authority, Emaar's project in Africa and South Asia ( although real-estate but still few of them have potential to cover the damages) and Emirates Airlines.

Yes there are some bad deeds in Dubai but still the city can manage to grow, the help from Abu-Dhabi will come, but it will take its time, so the things to do is, plan the stay in foreign country and then go back to home country and build it.

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Amazing aint it. Fortunately the bubble burst before they had more units than people.

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Re: EMPLOYMENT SLUMP IN UAE

Do people with work visas still need an exit visa to leave UAE?