Monday, January 19, 2009

Be very careful when paying over money to secure a job contract in Dubai.Have a lawyer go over the contract so you are completely covered in case your contract is terminated prematurely.See story below on what could happen

Shalu, a 33-year-old Indian, paid 50,000 Indian rupees ($1,000 U.S.) to an agency that shipped him to a construction job in Dubai on what was to be a three-year contract. Last December he was laid off after just one year.
His company told him and about 250 other workers the work had dried up.
As signs of a deep downturn in the Gulf state's once-buoyant property market multiply, those migrant workers who aren't forced to return are having problems sending money home, and their declining remittances may be a significant drag on the economies of South Asia.
Shalu, who asked to remain anonymous to protect his chances of future employment, had been sending funds back to his wife and six-year-old son, but is now trying to put together the cash for another agency fee to try his luck in Saudi Arabia.

Workers walks to their workplace in the Marina area of Dubai (Steve Crisp/Reuters)

“It's a big problem,” he said by telephone from his village in Kerala, India. “They gave me sudden notice and no release [to find other work].”
A lavish trade and tourism hub in the United Arab Emirates, Dubai is a prime destination for unskilled workers, many of whom spend hours on dusty construction sites, live in cramped desert labour camps and earn about 1,500 dirhams ($408.40) a month.
There is no current official data on the number of migrants but Human Rights Watch estimates there are three million from India, Pakistan and Bangladesh in the Gulf Arab state, the vast majority of them in the construction sector.
The labourers, mostly from South Asia, swarm over building sites for landmarks such as the Burj Dubai, the tallest building in the world, and Dubai's seemingly endless high-rises.
In return, the pay offers a better standard of living for families back home or a chance to put away savings.
The World Bank says remittances from the region, the lifeblood for millions in South Asia and the developing world, could decline by 9 per cent in nominal U.S. dollar terms this year, compared with a rise of 38 per cent last year.
Global remittance flows stood at $283-billion last year, up 7 per cent from the year before.
Workers in the Gulf Arab region sent 21 per cent of total global remittances to South Asia last year, with their funds accounting for 63 per cent of inflows to Bangladesh and 52 per cent of funds to Pakistan.
“There has been a fall in the number of migrant Indians employed abroad,” said Anshuman Jaswal, an analyst at research firm Celent in Bangalore.
He said remittances would remain depressed through 2009 and early 2010, putting pressure on the Indian economy and making it more difficult for it to achieve growth targets. Remittances make up about 3 per cent of India's gross domestic product.
Even before the financial crisis rattled Gulf Arab economies last autumn, the world's biggest oil-exporting region faced a decline in crude prices that steepened by year-end.
The slowdown has prompted delays or cancellations of projects in Dubai and beyond.
Last Thursday Nakheel, the government-owned developer of offshore island projects like The Palm and The World said it was talking to banks about financing sub-developers as some were having trouble making payments.
Analysts say the UAE faces a more abrupt slowdown than its neighbours as job cuts batter demand in the property and service industries.
A higher rate of cancellations will spur more redundancies in unskilled labour, said Roy Cherry, vice-president of research at investment management firm Shuaa Capital.
“Six months ago ... there was a shortage of labour and contractors were aggressive in trying to gain that labour, to train it, and bring it here. Today, they won't have to do that. they might have to cut back on labour.”

1 comment:

  1. Fantastic post, wonderful breakdowns . Simply put ………. Very useful . Thanks heaps for sharing your experiences and knowledge.
    Dubai Properties

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