Wave of unemployment soon to hit UAE
With recession in Europe and US getting worse from bad, companies in the UAE plan to rightsize to cut costs and stay in business. This will bring a new wave of unemployment to the shores of Dubai as well.
Jobs in Abu Dhabi’s construction industry are likely to be the most affected as state-backed firms reassess their budgets.
The UAE was dealt a blow by the global economic crisis in 2008, which saw property prices decline by around 60 percent as banks curtailed their lending and speculators left the market.
Categories: Business in Dubai, Living in Dubai Tags: Abu Dhabi, Construction, Jobs, Recession
Private Sector asked to create 20,000 jobs for the Emiratis
Private sector of UAE, already struggling with global recession and downturn, has been asked to create at least 20,000 jobs a year to cater for the jobless Emiratis.
According to Saqr Gobash, Minister of Labour, Chairman of the Board of Trustees of the Development and Employment Authority of National Human Resources (Tanmia), there are at least 35,000 unemployed Emiratis in the UAE. Out of which only 8,000 Emiratis are currently enrolled with Tanmia.
There is already a law in place that makes it virtually impossible for employers to fire Emirati employees.
Categories: Business in Dubai Tags: Recession, Saqr Gobash, Tanmia
Multi-billion Dirhams Infrastructure Projects Defy Recession in Dubai
Amidst the rumors of recession and global downturn, multi-billion dirhams infrastructure projects are on full swing in Dubai.
Three major road projects worth Dh2.9 billion were approved recently by His Highness Shaikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Also, work has begun to expand the combined passenger capacity at Dubai’s two airports – Dubai International and Dubai World Central – to 240 million, from the 190 million initially planned.
The RTA projects, approved by Shaikh Mohammad, include upgrades of Al Wasl Road, Al Khail Road and Umm Suqeim Road.
Categories: Living in Dubai Tags: Al Khail, Al Wasl, Recession, RTA, Umm Suqeim
Law to ban private sector companies from sacking Emiratis
It has now been confirmed that what was quoted by Dubai Police Chief was not a mis-interpretation, as suggested by some media articles, but something that has been considered to be implemented as a Law in Dubai.
National Human Resource Development and Employment Authority (Tanmia) has submitted a draft proposal to the Ministry of Labour under which cases pertaining to the termination of Emiratis working in the private sector are to be evaluated.
The proposal suggests that the termination of Emiratis in private sector companies is to be considered arbitrary unless the employee has violated the labour law.
Categories: Business in Dubai, Living in Dubai Tags: Job cut, Recession, Tanmia
Job Cuts in Dubai are for the Expats only
It is an unspoken law, an informal policy, that only expats should be fired from their jobs in Dubai. Strange it may seems, but it is infact, a stark reality.
Recently, Al Futtaim Group fired 20 Emiratis on the ground of restructing the company in light of global recession. According to the official word, all of those made redundant were on probation.
Lt-General Dhahi Khalfan Tamim, the Commander-in-Chief of the Dubai police has warned local and international companies against any arbitrary termination of UAE nationals. This has been taken very seriously by Dubai Police (no idea why they had to take it personally) whose chief Lt-General Dhahi Khalfan Tamim issued a warning to local and international companies operating in Dubai, against any termination of locals (Emiratis).
Categories: Business in Dubai, Living in Dubai Tags: Al Futtaim Group, Job cut, Recession
Banks raising loan limit in wake of credit defaults and recession
Banks in Dubai are now acting up to control losses accumulated due to easy lending policies. In the wake of expats unable to pay their loans, dumping their cars, and fleeing Dubai, banks are raising credit limits for car and home loans.
Arabian Business reports Emirates NBD, the largest bank in the Middle East, has hiked the minimum salary limit for expatriates seeking a mortgage by more than 200 percent and doubled the threshold for locals. Emirates NBD is only considering expatriate customers for a home loan if they earn a minimum of 25,000 dirhams ($6,800) a month, up from a previous limit of 8,000 dirhams. Emiratis must now earn 20,000 dirhams a month, up from 10,000 dirhams.
Categories: Living in Dubai Tags: Emirats NBD, HSBC, Lloyds TSB, Recession
Expats dumping cars, flying back home to dodge credit crunch
While the media in Dubai (and UAE) follows strict protocol of not revealing information that might harm the reputation of “glowing economy” of UAE, some bits and pieces of “real” news slip out of the net.
Khaleej Times referred to a recent incidents where scores of expats dumped their vehicles in Dubai and flew back home to escape from credit card, bank loans and other financial liabilities, in the wake of recent job cuts in Dubai.
It is also reported that Sharjah Police has beefed up security, especially in labour camps, to prevent crimes that could take place as a result of current and expected job losses.
Categories: Featured, Living in Dubai Tags: Recession, Sharjah