Some have lost jobs within 3 weeks of having relocated there from places like Australia, and are now out of work with no money, no job when they go back home, and everything they have laid out setting themselves up in Dubai effectively lost.
Ex pat job losses in Dubai, UAE
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arjay
- udonmap.com
- Posts: 8345
- Joined: October 2, 2005, 12:19 pm
- Location: Gone to get a life, "troll free"
Ex pat job losses in Dubai, UAE
I've just been watching a big news item on CNN about ex pats losing jobs in Dubai, UAE.
Some have lost jobs within 3 weeks of having relocated there from places like Australia, and are now out of work with no money, no job when they go back home, and everything they have laid out setting themselves up in Dubai effectively lost.
Some have lost jobs within 3 weeks of having relocated there from places like Australia, and are now out of work with no money, no job when they go back home, and everything they have laid out setting themselves up in Dubai effectively lost.
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izzix
- udonmap.com
- Posts: 2562
- Joined: November 30, 2005, 7:59 pm
- Location: where can i find a GOOD brass
Re: Ex pat job losses in Dubai, UAE
they have been spending huge amounts of cash to build these enormous developments but now the easy cash to build is no longer available.
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Market Scan
Opaque Dubai Faces Ratings Action
Lionel Laurent, 02.02.09, 04:45 PM EST
Moody's considers cutting gradings on 6 government-controlled firms; more information might help.
pic
Sometimes even nationalization is not enough for a company to avoid a credit-rating downgrade, especially when it comes to the debt-laden emirate of Dubai. On Monday, Moody's warned it was reviewing its ratings of six of Dubai's biggest government-controlled firms--from Emaar Properties to Dubai Ports World--for a possible downgrade.
The downgrade is unlikely to be drastic, according to Moody's, given that most of the companies have "solid" liquidity and only a "limited" risk for near-term refinancing. But the consequences of a rating downgrade--which makes it more expensive for companies to raise debt on the open market--could raise yet more concerns over how the emirate of Dubai will cope with its own sovereign liabilities.
After all, these companies are owned by the government of Dubai, and are therefore linked to the macroeconomic health of the emirate. The good news is that Dubai is part of the seven-member United Arab Emirates, and oil-rich big brother Abu Dhabi should be more than able to 'bail out' Dubai if the need arises. But Dubai and Abu Dhabi have also been fiercely competing with each other, in everything from tourism to business, and a high-profile rescue of Dubai would be a rather humiliating end to the battle. (See "Abu Dhabi Rising.")
So what can Dubai do? Shedding some light on its national balance sheet would be a good start. According to Philipp Lotter, senior vice-president at Moody's in Dubai, the emirate has around $90.0 billion in assets that are not related to companies like DP World (other-otc: DPWRF - news - people ). Lotter said that it was impossible to tell what exactly these assets were, and that if they were mostly infrastructure-related trophies like ports or roads they would not be liquid enough to help companies bolster their capital in the short term. But if they could be more easily converted to cash, that would help.
"Having $90.0 billion of liquid assets that you can allocate at short notice is a comfort," said Lotter. "But we don't know whether those assets are liquid enough. We hope, over the course of our review, to get a little bit more detail."
Dubai itself does not have a sovereign rating with any of the "big three" ratings agencies--Moody's, Standard & Poor's and Fitch--unlike Abu Dhabi and the United Arab Emirates. This is not worrying on its own, as its credit strength is closely linked to Abu Dhabi's and the UAE's. But it does mean that Dubai's balance sheet is more opaque than it should be at this critical juncture for the emirate's fortunes.
************************************************
Market Scan
Opaque Dubai Faces Ratings Action
Lionel Laurent, 02.02.09, 04:45 PM EST
Moody's considers cutting gradings on 6 government-controlled firms; more information might help.
pic
Sometimes even nationalization is not enough for a company to avoid a credit-rating downgrade, especially when it comes to the debt-laden emirate of Dubai. On Monday, Moody's warned it was reviewing its ratings of six of Dubai's biggest government-controlled firms--from Emaar Properties to Dubai Ports World--for a possible downgrade.
The downgrade is unlikely to be drastic, according to Moody's, given that most of the companies have "solid" liquidity and only a "limited" risk for near-term refinancing. But the consequences of a rating downgrade--which makes it more expensive for companies to raise debt on the open market--could raise yet more concerns over how the emirate of Dubai will cope with its own sovereign liabilities.
After all, these companies are owned by the government of Dubai, and are therefore linked to the macroeconomic health of the emirate. The good news is that Dubai is part of the seven-member United Arab Emirates, and oil-rich big brother Abu Dhabi should be more than able to 'bail out' Dubai if the need arises. But Dubai and Abu Dhabi have also been fiercely competing with each other, in everything from tourism to business, and a high-profile rescue of Dubai would be a rather humiliating end to the battle. (See "Abu Dhabi Rising.")
So what can Dubai do? Shedding some light on its national balance sheet would be a good start. According to Philipp Lotter, senior vice-president at Moody's in Dubai, the emirate has around $90.0 billion in assets that are not related to companies like DP World (other-otc: DPWRF - news - people ). Lotter said that it was impossible to tell what exactly these assets were, and that if they were mostly infrastructure-related trophies like ports or roads they would not be liquid enough to help companies bolster their capital in the short term. But if they could be more easily converted to cash, that would help.
"Having $90.0 billion of liquid assets that you can allocate at short notice is a comfort," said Lotter. "But we don't know whether those assets are liquid enough. We hope, over the course of our review, to get a little bit more detail."
Dubai itself does not have a sovereign rating with any of the "big three" ratings agencies--Moody's, Standard & Poor's and Fitch--unlike Abu Dhabi and the United Arab Emirates. This is not worrying on its own, as its credit strength is closely linked to Abu Dhabi's and the UAE's. But it does mean that Dubai's balance sheet is more opaque than it should be at this critical juncture for the emirate's fortunes.
Re: Ex pat job losses in Dubai, UAE
Yes it is not an "oil rich" state. They decided to embark on creating a "high end" tourist business to generate foreign currency mainly funded by low cost loans from its Arab oil rich neighbours. Something it has largely managed to achieve. BUT any sort of tourism has hit the rocks lately & its oil rich nations are not quite so rich with falling oil prices - a double problem for them for certain.
Most ex-pat contracts have a "trial period" at the start (even if they are so called "fixed" for a year) after which the employer can terminate at zero cost (or effectively, zero reason) & leave the employee high & dry. It is very much like the "Insurance" thread - it pays to read what you are actually signing for !!!!!
Most ex-pat contracts have a "trial period" at the start (even if they are so called "fixed" for a year) after which the employer can terminate at zero cost (or effectively, zero reason) & leave the employee high & dry. It is very much like the "Insurance" thread - it pays to read what you are actually signing for !!!!!
Re: Ex pat job losses in Dubai, UAE
arjay wrote:I've just been watching a big news item on CNN about ex pats losing jobs in Dubai, UAE.
Some have lost jobs within 3 weeks of having relocated there from places like Australia, and are now out of work with no money, no job when they go back home, and everything they have laid out setting themselves up in Dubai effectively lost.
Sounds like the same gamble that some guys do when they hookup in Thailand Actually I feel sorry for those that were so desperate for work that they didn't know or care about the risks involved!For some,better to take a plunge than have nothing at all,and for others experience to help them with the future,if they paid attention!
But,for bleeding hearts ,there are millions,maybe billions of people in the world that have no opportunity for anything resembling a decent healthy life that might deserve to go to the head of the line over guys losing there jobs!
Re: Ex pat job losses in Dubai, UAE
I'm at work and cannot access this website.. www.economicrot. Google it. they have a short video, (youtube) on the property issues confronting Dubai etc. well worth watching
regards
regards