Dubai Officials Try to Protect their Image as Economy Falls
Posted February 21st, 2009 by tyler01
Legislators in Dubai, one of the seven emirates and the most populous city of the United Arab Emirates, have drafted a law that would make it a crime for media to damage the country’s reputation or economy, punishable by fines of up to 1 million dirhams (about $272,000). Some of the stories of a tumbling economy still coming from Dubai (at least for now) include:
- No longer the land of opportunity: Dubai, whose workforce is 90% foreign is said to be canceling over 1,500 work visas each day, though local officials aren't willing to confirm or deny the accusation made by local newspapers.
- Cars have migrated from the roads to the airport. Traffic is usually heavy this time of year in Dubai. Now the roads are clear and more than 3,000 cars have been abandoned at the airport by fleeing foreigners - afraid of ending up in debtors prison for failure to pay mortgages and other loans. Some of the cars include maxed out credit cards and notes of apology.
- Real Estate prices have dropped more than 30% in the past three months in some parts of Dubai. This is especially dramatic as the drop follows six years of continuous high growth.
- As inventories of luxury cars pile up, prices have dropped 40% in just two months.
- Neighboring emirate Abu Dhabi has bailed out its banks in Dubai, but has yet to help the Dubai government restore confidence in Dubai's financial system.
Legislators in Dubai, one of the seven emirates and the most populous city of the United Arab Emirates, have drafted a law that would make it a crime for media to damage the country’s reputation or economy, punishable by fines of up to 1 million dirhams (about $272,000). Some of the stories of a tumbling economy still coming from Dubai (at least for now) include:
- No longer the land of opportunity: Dubai, whose workforce is 90% foreign is said to be canceling over 1,500 work visas each day, though local officials aren't willing to confirm or deny the accusation made by local newspapers.
- Cars have migrated from the roads to the airport. Traffic is usually heavy this time of year in Dubai. Now the roads are clear and more than 3,000 cars have been abandoned at the airport by fleeing foreigners - afraid of ending up in debtors prison for failure to pay mortgages and other loans. Some of the cars include maxed out credit cards and notes of apology.
- Real Estate prices have dropped more than 30% in the past three months in some parts of Dubai. This is especially dramatic as the drop follows six years of continuous high growth.
- As inventories of luxury cars pile up, prices have dropped 40% in just two months.
- Neighboring emirate Abu Dhabi has bailed out its banks in Dubai, but has yet to help the Dubai government restore confidence in Dubai's financial system.