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Livin' la vida expat in Dubai isn't as snazzy as it used to be

by Scott Carmichael (RSS feed) on Feb 13th 2009 at 10:30AM

Forget New York City - the world capital of spend, spend, spend has long been Dubai. This is literally where the sky was the limit, and when they ran out of sky, they simply built out into the ocean.

Thousands upon thousands of foreigners made their way to Dubai to grab their own little bit of the wealth.

Of course, that has all come to a grinding halt. Construction is slowing down, and a general feeling of doom and gloom is descending upon the nation.

Things are apparently so bad, that many expats are packing up their belongings and leaving. Of course, when you leave so suddenly, you tend to forget minor things like your mortgage, your car and your credit card debt.

Dubai International airport is reported to be home to over 3000 abandoned cars from fleeing expats. Some of the cars have apology letters taped to the windows, and others have their maxed out credit cards left on the seats.

The expats leave the nation behind for a few simple reasons - Dubai locks debtors away, and anyone without a job loses their visa. The New York Times reports that parts of Dubai are starting to look like a ghost town, with unfinished construction projects and masses of vacant property.

Things are actually so bad, that the government has been canceling as many as 1500 work visas every single day - a number they don't want to confirm or deny.

Unless things turn around very soon, the entire place is probably going to be doomed - Dubai does not have any oil of its own, and the entire economy was built upon real estate and financial services. Now those 2 sources of cash are slowly disappearing, Dubai could soon make the Madoff scam look like petty theft.

Do you (no longer) live in Dubai? Are things really this bad? Let us know in the comments!

(Via: New York Times)

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Filed under: United Arab, News, Middle East

Reader Comments (Page 1 of 8)

Moody75 Feb 13th 2009 12:25PM

When migrants leave the US during tough economic times (as is happening in Arizona right now, check the news reports) some people point to this as an example of how migrants are "unpatriotic" and "not invested" in the US. If they do so while abandoning loans and credit cards they are described as opportunistic. I have heard people say things like "oh, they only come when times are good".

However, when the same thing happens in Dubai, the media tends to gloat; "the entire place is probably going to be doomed". We don't see any correlations between solid social foundations and not treating where one lives as a cow to be milked until she collapses from exhaustion.

By the way, people in the US on work visas also have 2 weeks to leave the country (unless they have a green card) if they lose their jobs. This is not something that is unique to Dubai only.

Me Feb 16th 2009 3:33PM

Only in the US, they let them stay for more than 2 weeks, they collect benefits, use our healtcare system for free, etc.. People who need jobs to support their LEGAL status get NOTHING

Pablo Feb 16th 2009 3:23PM

Yes that is true but our INS does non enforce, or even try to find these people, they just apply for welfare!

Mark Feb 16th 2009 7:22PM

Just a few facts you left out in your comparison..
In Dubai, the expats are there legally, in the U.S., the ones leaving were (mostly) never here legally in the first place. In Dubai, they paid taxes, in the U. S., they did not (mostly). In Dubai, they go to debtors prison, in the U. S., they do not. So, when you do your little comparisons, be fair. You were not.

Jh Feb 16th 2009 9:52PM

Actually, I'm agreeing with Me on Feb 16th 2009 @ 3:33PM who replied to Moody 75.

Me said...
Only in the US, they let them stay for more than 2 weeks, they collect benefits, use our healtcare system for free, etc.. People who need jobs to support their LEGAL status get NOTHING

Jh agrees with Me!!! Like Obama's aunt who's been here a couple of years since hers ran out.

Roberto Feb 17th 2009 12:01AM

Non-immigrant temporary workers who have H1B visas do not have 2 weeks to leave the USA if they lose their jobs. They are required to leave immediately, which means the next morning. Of course, most unemployed H1B workers try to get a new job ASAP, and USCIS has been choosing not to enforce the letter of the law. This gave rise to the myth that there is a grace period in which to find a job or leave. There is no grace period.

Mike Creek Feb 17th 2009 2:28AM

Legal aliens who come here to work get two weeks to get their affairs in order before they leave if they lose their jobs. Since their only reason to be here is to work, it does not seem unreasonable that they leave when their work is completed.

I often blog on immigration and cultural issues.

http://hystericalrightwing.blogspot.com/

Don Feb 18th 2009 6:34AM

Moody, you sound like a disgruntled immigrant. Feel free to enjoy the opportunities in you own country and leave American to the Americans

Moody75 Feb 18th 2009 9:30AM

Whoa there Don, steady.
While it really is non of your business I do happen to be an American.
What about my comment lead you to believe otherwise? Because I have views that don't jive 100% with yours?

P.S. A short lesson on the English language;
The country's name is "America".
"American" is an adjective, it means of or pertaining to the United States.
Further, "you own country" makes no sense.

Zamo Feb 18th 2009 12:49PM

They got 60 days and nowadays even more as the CIS is giving more chances for any H1 without a job to get one.

But I agree with the comment about people leaving with unpaid debt. That unpaid debt should follow them everywhere they go, forever.

Ken Wise Feb 13th 2009 2:27PM

UK and now US press have been making themselves feel better by trashing Dubai. Total cars abandoned at Dubai Airport in 2008 and January 2009? Eleven. Yes, Dubai Immigration has cancelled about 1,500 work visas per day. Mine is cancelled each year, the same day it is renewed. What the press failed to ask is how many new work visas does Dubai Immigration issue? In January 2009, about 2,500 per day. Gain for the month of 30,000 persons. Dubai is scarcely becoming a ghost town. Perhaps 1,000 persons have been laid off as real estate sellers but their employers are putting them on "holiday" rather than reporting their termination to Immigration. This gives them time to find new jobs or have their lives in order before they leave. New construction here as everywhere is being postponed but projects underway are being completed and public projects such as the metro are being completed also. Real estate prices have dropped on average 30 percent in the last four months. But, please, that is from prices that rose about 30 percent in 2006, 70 percent in 2007, and 100 percent in 2008.

Mark Feb 16th 2009 3:13PM

Ken, you seem somewhat knowledgeable of the life and times of Dubai. I am seriously considering going over there for work (I a heavy equipment operator). Is it a good idea or not? Can you please let me know? My email address is aclwolverine@aol.com

Thanks.

Doug Feb 17th 2009 11:52AM

Excellent points
The press (newspapers)in the USA are going bankrupt and what is left are writters who do not have the budget to investigate fully.
What you read is an example of that.
What a shame because the USA reporters have been what has made America great in the past. No more!

cuemiller Feb 16th 2009 7:35PM

Ken, wishing will not make it so. The world-wide economic collapse is real, and it is well-known (and well-reported by reliable news media) that Dubai is being hit hard.

Toby Feb 16th 2009 8:32PM

I am happy to see that someone is telling it the way it is. Dubai is a beautiful place where people from all over the world are treated well.

Giselle Feb 17th 2009 3:10AM

I am not sure who is saying these positive things about Dubai, but they either don't live there or are working for the government here. I have lived here for a year and have spent six months searching for a job in vain. I have a master's degree in science and could not even find a secretarial position. People are panicking, and have (as they do in America) racked up the debt that comes with the sexy apartment and fast car lifestyle people try to convey here. And the government has threatened to take legal action against any media putting a bad light on Dubai at this time (I have confirmation from friends that are local reporters). Unless you already have a job lined up I would strongly suggest NOT coming now. Living prices are more expensive than NYC and you cannot survive long without a well paying job. I do hope the city bounces back soon, but for now what you hear (albeit slightly exaggerated) is true. Projects are on halt, if not canceled, people are losing jobs in astounding numbers (some sectors such as real estate and construction are the hardest hit), and the government is hiding it.

Ed Feb 17th 2009 11:48AM

You must be kidding. I have been living in Dubai for the past two years and trust me Nakheel alone has laid off more than 1000 people. The company that I work for is a large Australian Architecture firm (not one of the many mega-companies in Dubai) and they have laid off about 400 employees. Emaar has announced 1500 lay offs, so the REAL total is probably double that. Every day as I drive to work my commute gets shorter and shorter because there is a noticable difference in the number of cars on the road from week to week. The construction cranes are sitting idle everywhere. And I have a friend who works for the Dubai CID ( police investigation unit) and he told me that as of December 2008 over 15,000 cars had been abandoned at the airport. Dubai is definatley in serious trouble...they just don't want that getting out.

Noel Feb 17th 2009 3:15PM

The US and Brits reporters are not the only unfair teams out there sir, can you show me a reporter that writes only the facts and still has a job? Reported love when the mighty fall, the have no ill will toward Dubai..I mean the Prince made paradise from nothing. Dubai will be there and survive the downturn that the entire world feels. Anyone with common sense can read write past the reporters, the world does not hate Dubai...I know I don't, I live here in Washington DC.

Ron Mar 4th 2009 2:15PM

Ken, been living here for four years. Where are you getting your infomation man. Eleven cars? A day maybe. Prices are expected to be 500,000 dhs above OP (original Price) off plan prices. Good time to invest actually if you can sit on it. Appox. 1 mil dhs equals 360,000 dollars. That is what you can buy a very small and extremmely badly built 1 bed apartment, maybe 600 to 700 sq.ft. You can buy a very nice house with a huge yard for that in many places in the States. I am from the Houston area. My last house was 110,000 dollars with 1/4 acre plot two blocks from the water. I do have a good job here in Abu Dhabi but all my friends have lost most of theirs. The ones that are still here.