Progulochnye Transformery Lyulki Trosti Modulnye Komplekty Aksessuary Dlya-dvoyni

Entries tagged with “recession”.

A piece from the New York Times on the crashing of Dubai’s economy for the many foreigners who have been living in an economic bubble of artificial wealth and lavish spending. Also discusses the tale that the Palm Jumeirah hotel may in fact be sinking, and is ridden with cockroaches.

Some things are clear: real estate prices, which rose dramatically during Dubai’s six-year boom, have dropped 30 percent or more over the past two or three months in some parts of the city. Last week, Moody’s Investor’s Service announced that it might downgrade its ratings on six of Dubai’s most prominent state-owned companies, citing a deterioration in the economic outlook. So many used luxury cars are for sale , they are sometimes sold for 40 percent less than the asking price two months ago, car dealers say. Dubai’s roads, usually thick with traffic at this time of year, are now mostly clear.

Three reasons why Dubai’s doom is greatly exaggerated:

First, the very fact that almost all of the emirate’s labour is foreign is a boon. Simply put, there will be no long lines at the unemployment office. There will be no public or parliamentary debate over how to help those who are now out of work. If you lose your job and you’re a foreigner, you’ll be on the next plane to wherever you came from in the first place. If you happen to be one of the 250,000 working Emiratis (not even half of whom are in Dubai), then you won’t lose your job to begin with, or you’ll be re-assigned or given some government post. For Dubai, just like the other small Gulf sheikhdoms, the economic crisis does not automatically translate into a social issue.

…but the frenzied pace of development in Dubai and elsewhere in the United Arab Emirates is grinding to a halt and the over-the-top extravagance on full display late last month at places like the new Atlantis, at the tip of one of Dubai’s three man-made, palm-tree shaped island archipelagos, may soon be a thing of the past.