Foreign Policy Mag: "Dubai's Troubles Have Just Begun" ... Yikes.

I think these are not just nay-sayers. I'm concerned that denying these kinds of things will only add to the problems here.

Local Dubai Opinions on the Economic Downturn

Over the last year I've been informally polling various friends in business and industry here to ask about the economic downturn and whether things are changing; getting better or worse.  Sometimes it's difficult to tell from the local media reports.

Here's a quick and brief sampling from friends...

Experienced Safety Engineer

"Our company is very precarious financially..."
"(The Dubai economy) will not get better... it cannot."

Experienced Industrial Designer

"Many companies were trying to hold on until after Eid to see if business picked up but there's just not enough to go around.  There are some 'big players' in the market that are going to go under soon... or just pull out."

Higher Education Administrator

"Enrollment is down significantly this year"

Taken together, these opinions paint a pretty bleak picture.  We'll see what happens.

In America: An Ode to the Financial Crisis

I've been traveling in America for almost a week on business. With 24 hour a day cable news it's a real "downer" being here during the financial crisis. At least in the UAE there are laws to protect us from hearing what's really going on from our local media. As an ode to the situation here I'm posting this wonderfully humorous song. Be sure and check out RhettandLink.com. They rock and they're "clean".

Dubai and the "Downturn"

This is a graph about the indebtedness of Dubai that I've had on my desktop for months. This was published before the economic crisis. It seems ominous in retrospect.

Anecdotally, I've noticed the roads in Dubai are more clear more often. A sign of reduced population here. The malls also seem to be more empty as well. I was in a somewhat deserted Times Square Mall last night and shoppers were few and far between despite Dubai Shopping Festival sales all around.

Day before yesterday I went to close out a small checking account at a local bank here. When I told the man I wanted to close the account he pulled out a paper and asked, "Are you leaving the country?" Replying no, I then asked if a lot of people were leaving the country and closing out accounts. He paused, nodded his head, and said "yes, they are".

This is a telling article from the NYTimes titled "Laid-Off Foreigners Flee as Dubai Spirals Down". Pretty grim.

Newsweek Article on Dubai: Is the Party Over?

From Desktop

This very interesting article showed up in December's Newsweek. It was the cover story on the edition that was released in the Middle East and Dubai. I saw a whole rack of them at the Geant store in Ibn Battuta mall a month ago. The downturn has just been hitting Dubai in the last two months. Seems that we're hearing of layoffs almost every business day. Projects are being cancelled. A friend who runs a job search coaching business is having business boom for him; not a good sign for the economy in general here. A number of friends have noted that the slowdown has visibly effected the number of workers you see on job sites just driving down the road. I talked to a construction safety engineer this morning who told me that his company was instituting mandatory salary cuts starting with 2% for laborers and up to 40% for top level people. It will be interesting to watch and see how Dubai weathers this 'storm'.

Great Blog on UAE Economics

Here's a great blog on economics in the UAE... Check it out if you're interested in following the effect of the worldwide economic downturn on the UAE... which is significant.

Emirates Economist

NYTimes Article and Slideshow on Young Muslims in Dubai

From Desktop

There is a fascinating article and accompanying slideshow on the New York Times website that came out a few weeks ago. The article really rings true to me as I have contact with young Muslims in Dubai. At least check out the slideshow here.

Wanna Buy a Luxury Yacht?

Back in Dubai... where luxury yachts are advertised like shampoo, phones, or chewing gum. These Ferretti yacht ads are being advertised all up and down Beach Road.

I guess that says something about the percentage of the population with lots of disposable income.

Only in Dubai :)

From 2008-9-4 Phone Pics

From 2008-9-4 Phone Pics