The good, the bad, and everything in between

The good, the bad, and everything in between

The financial crisis has instigated both good and bad changes for expatriates in Dubai. We list a few.

January 13, 2009 10:59 by Aarti Nagraj

Bad:

According to a report in The National, companies in Dubai are cutting down housing allowances for employees, and hiring single professionals rather than married ones in a bid to cut costs.
“Bringing in families means health insurance, larger accommodation and education allowances. It is easier to bring in a single employee and cut the rest of the cost,” an investment officer at a property leasing and mortgage advisory firm in Dubai told the paper.

Good:

The reduction in housing allowances combined with a reduction in hiring has hit the rental market.

According to a report by property services firm Asteco, rental prices in Dubai were at a standstill in the last three months of 2008, and the average cost of renting a one-bedroom flat in Dubai rose by only four percent last year.

Recent media reports claim that landlords are allowing tenants to pay their rents by more than one check per year.

Dubai’s Real Estate Regulatory Authority (Rera), is also planning to introduce a rental index, which will provide information about rental rates across Dubai.

Bad:

More than 1,000 people have been laid off in Dubai, and as construction projects get stalled or cancelled, unemployment will grow. It is especially true for the laborers, many of whom were sending money home regularly.

The World Bank says remittances from the Gulf region could decline by nine percent in nominal dollar terms in 2009, compared with a rise of 38 percent last year, reports Reuters.

Good:

Because the UAE currency is pegged to the US dollar, the recent adjustments in currency exchange have been favorable for many expatriates who send money home.

The British pound has fallen sharply against the dollar in the last two months, and the Indian and Pakistani rupees, and the Philippine pesos have all risen against the dirham, giving expatriates of these nations more money for their dirhams.

Bad:

According to a recent report, expatriates working in 57 occupations including cooks, bakers, waiters, tailors and make-up artists have been banned from bringing over their families to the UAE.

Authorities said that low-income employees were often unable to pay visa fees for their families, which leads to an increase in illegal immigrants.

Good:

Reports state that fewer people are using taxis, which as increased the availability of taxis on the roads.

Can you list out any more?

Tags: currency, Dubai, expatriates, Financial Crisis, housing, property, remittances, rent, RERA, visas

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4 Comments

jayan.nair35@yahoo.com on January 13, 2009 5:44 pm

Economic Crisis
Good – More people will leave this country to live in a real place.
Good – The artificially supported, hiked up rent will fall
Good – No more nuisance callers selling credit cards
Good – Possibly half the banks will close – I believe no city should have
more than 5 Banks. Here it is reaching 50.
Good – Less cars will be sold, which means less pollution, less traffic,
less accidents
Good – People will have a fresh look at Communism. A simple life model
where Government took full care of the people, and people
worked for the collective common good, without living and dying
in greed. Might have worked. Soviet Union might not have rotted
into a Gulag had it not been for the cold war. USA rotted to
Guantanamo in face of a strong enemy. So its not fair blaming
the Soviets alone.

Good – People will move away from consumerism, and the ensuing carbon footprint.
Kaushik on January 14, 2009 11:00 am

Bad – Lots of people will have to separate from their families, thanks to the new recruitment demands.
Good – There will less unnecessary developments around the city.
Good – Rationalizing will start again as everyone would want to know where every penny is spent. Over the years, unnecessary spending in Dubai had become a trend!
Bad – Tourism might drop further more! DSF has lost its charm anyways, thanks to Muscat Festival and many more.
Bad – People are being laid off… Sadly no statistics show whether those who never works are being laid off as well! We know for sure, Dubai has a large bunch of unwanted, good for nothing, highly expensive work force (who rarely work but exists!)
Bad – The city of Dubai may loose out on its share of fame, prosperity and glamour.
Good – Need will override Temptations as spending budgets shall limit cravings.
Good – Life shall be tougher and stressed out resulting in better sleep quality (of whatever time we shall get actually)
Tafnis on January 14, 2009 11:36 am

Good: smart people will (again) vote with their feet, and move to the next eldorado.

But this time, a real eldorado, where the local really welcome migrants as potential assets for the society, and grant them with citizenship after a few years.
dubai property on January 20, 2009 3:29 pm

lot of property prices have reduced and rental prices have also reduced.Investors like me are confused in this circumstances.