You are not sacked

You are not sacked

The Dubai government has said that it will not sack any of its employees because of the financial crisis.

March 26, 2009 2:58 by Aarti Nagraj

Employees working for Dubai government departments will not be sacked because of the current economic situation, Ahmad Al Shaikh, media aide of Sheikh Mohammad Bin Rashid Al Maktoum, Ruler of Dubai, and the managing director of Dubai Media Incorporated, told Gulf News. So far there have been no layoffs, he added.

“Dubai Government will not sack any staff working for government departments, yet this does not mean that employees can neglect their duties or violate administrative rules,” he said.

This announcement was made after reports that the UAE’s economy grew by 7.4 percent last year. Sultan Al Mansouri, the Minister of Economy, said that it is an indicator that the effects of the global financial crisis had been “relative and minimal”, a government statement issued on Wednesday said. While admitting that this year would be challenging, Al Mansouri said government spending would increase, despite the decrease in oil revenues.

Government officials and industry heads in Dubai have been denying any strong impact of the global financial crisis in the emirate; in December 2008, Alabbar insisted the city has a bright future, and earlier this month, Al Mansouri said that “The country’s economy is the least affected by the crisis. We are much better off than others,” adding that like the UAE, Dubai’s economy was sound and will weather the global financial crisis.

Dubai’s private sector, especially the real estate industry, has been badly affected by the slowdown, with massive layoffs, salary cuts and cancelled projects. However, will the public sector’s confidence rub off on the private sector? And will reports of a growing economy encourage private companies to keep doing business in Dubai?

And will the government’s guarantee that it will not lay off its staff help prove what they have been saying about Dubai’s economic strength?