State of the Economy

[PENBC]

Given the state of the world is in a downward spiral...are there any signs on the ground in Dubai. Any layoffs, slow down in real estate etc. Has anyone had their offers of employment revoked because of the economy?

[Smiles:-)]

Originally Posted by PENBC

Given the state of the world is in a downward spiral...are there any signs on the ground in Dubai. Any layoffs, slow down in real estate etc. Has anyone had their offers of employment revoked because of the economy?

YES, I had a job in the bag (Property development) they were just waiting on the chairman to give final ok and today I got a call saying sorry but the chairman just put a hiring freeze and the position has been put on hold indefinitely. I was sooo bummed! They said it was because of the economy.

[Pasanada]

I worked in the automotive business in Dubai. I was finding it more and more difficult sourcing diesel 4x4's as they are very popular. Plenty of petrol ones but they're of no use in war zones! However, we did end up having to use them eventually.

I often wondered when driving around Dubai if the credit crunch had reached it, there seems to be massive building projects going on all over. This was also evident in Abu Dhabi and when I visited Doha.

Having been back in Europe for a couple of months, it seems everyone is worrying about a recession although people are still spending; I sat in traffic for 1 hour this morning as the shopping mall was congested with shoppers, parking was almost non existant. I do wonder if the media are scaremongering......

[flossie]

Originally Posted by Pasanada

I worked in the automotive business in Dubai. I was finding it more and more difficult sourcing diesel 4x4's as they are very popular. Plenty of petrol ones but they're of no use in war zones! However, we did end up having to use them eventually.

I often wondered when driving around Dubai if the credit crunch had reached it, there seems to be massive building projects going on all over. This was also evident in Abu Dhabi and when I visited Doha.

Having been back in Europe for a couple of months, it seems everyone is worrying about a recession although people are still spending; I sat in traffic for 1 hour this morning as the shopping mall was congested with shoppers, parking was almost non existant. I do wonder if the media are scaremongering......

The local press are definitely not scare mongering. In fact, they have only just started to acknowledged that there is a slow down. I have heard of redundancies and met people who have been laid off. Hubby's company is cutting costs left, right and centre. Just look at the property pages in the Gulf News. Off Plan properties, in particular, are very hard to sell.

[Elphaba]

Dubai is being affected, but you won't see it reported in the press.

The property sector has been hit, with huge amounts of resales advertised but fewer buyers than before. Partly market sentiment and partly due to the fact the strengthening of the US Dollar makes the UAE more expensive for British and European buyers. I know for a fact that certain developments are slowing down and I am waiting to hear of some being cancelled. This has happened before.

The UAE is not immune to global markets, whatever the press says, but the sheer size of the soveriegn wealth funds (AD = trillions of Dollars) and the massive reserves in Abu Dhabi (already bailing out some Dubai projects I hear) means that the rulers can prop up the country.

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[dizzyizzy]

I have a friend who works as landscape architect and her customers are all the major developers. Yesterday she learnt that one of the big ones will lay off 400 people in the next few days.

[Pasanada]

I read a report on the BBC News website about the effects of the credit crunch on Dubai....it's regarded as a weak area and likely to be more affected than other Gulf states.

Could be interesting times ahead.....

[PENBC]

Originally Posted by Elphaba

Dubai is being affected, but you won't see it reported in the press.

The property sector has been hit, with huge amounts of resales advertised but fewer buyers than before. Partly market sentiment and partly due to the fact the strengthening of the US Dollar makes the UAE more expensive for British and European buyers. I know for a fact that certain developments are slowing down and I am waiting to hear of some being cancelled. This has happened before.

The UAE is not immune to global markets, whatever the press says, but the sheer size of the soveriegn wealth funds (AD = trillions of Dollars) and the massive reserves in Abu Dhabi (already bailing out some Dubai projects I hear) means that the rulers can prop up the country.

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I hope that proves to be true.

[Maz25]

It does seem like the property boom is coming to an end!

= FOCUS: Dubai Property Agents Fear Crash As Home Sales Slump

[Andy Capp]

There is no property slump here. We're immune to the rest of the worlds problems, living in our own little microcosm called virtual reality.

Didn't you not know...