It is a serious concern for workers and expatriate employees in the Emirates, because of the possibility of losing their jobs after this statement issued today, from the consulting firm Mackenzie, which may cause a flight of concern due to migrant workers in the Emirates.
A survey conducted by consulting firm McKinsey showed that eighty percent of respondents are in the Emirates, with expatriates making up the majority of the population.
Worried about losing their jobs, and over forty percent said they cut spending and monitored prices, and this came during a report prepared by Reuters news agency.
Which revealed a gradual decline in the Dubai economy affected by the drop in oil prices and real estate, and in turn, the report itself added, that even in huge shopping centers that are getting popular such as Mall of the Emirates.
Which includes an indoor ski area, and the Dubai Mall, known for its dancing fountains, there are more stores empty and tenants are changing rates. As for signage discounts, you see them everywhere.
Through it, CEO of Majid Al Futtaim, who runs six shopping malls in Dubai, says consumers are counting the cost more than before, which causes the application of a value-added tax of five percent last year.
Weak consumer confidence in an economy that grew 1.94 percent in 2018, the lowest rate since 2009, hurting retailers.
In turn, Patrick Shalhoub, CEO of the Chalhoub Group in Dubai, which has joint ventures with luxury brands such as Louis Vuitton, Dior and Swarovski, said that the company closed 30 percent more stores than it opened in 2018 in the UAE, where he continued his speech saying that the disposable income for spending has People are less.
In June of this year, wholesalers and retailers have reduced prices for the fourteenth month in a row, according to the Emirates NBD Index to monitor the Dubai economy. Sales of cars, gold jewelery and electronics were particularly slow.
The wholesale and retail trade sector is the single largest contributor to the Dubai economy. The sector contributed 26.4 percent of GDP in 2018, but that contribution is the lowest since the financial crisis of 2009, according to figures from the Dubai Statistics Center.
The Department of Economic Development in Dubai says that there are many government initiatives to stimulate growth, including easing visa restrictions and accelerating spending on infrastructure projects, and the Department of Economic Development said it expects the sector to grow by 1.9 percent in real prices this year and 4.5 percent and 2. 4 percent in 2020 and 2021, respectively.
Matthew Lewis, a Middle East and Africa official at Boyden Employment Agency, said living on middle income is getting harder and added: “After people become accustomed to having the surplus money they send to their home or spend it on the market, they find that their expenses match their income.
According to central bank data, employment in the UAE fell 0.9 percent in 2018. Inflation is low this year, but the cost of living is high due to lower benefits and wages.
Hence, Paul Gomes, who resides in the UAE and has been suffering from unemployment for more than six months, said after the publishing company in which he was working stopped its activities, and you hear more about layoffs and less about employment, the emirate is also counting on a batch of hosting the World Expo 2020 that hopes In that it attracts 11 million foreign visitors.
Finally, Krisjanis Krostens, director of the Middle East and Africa team at Fitch Ratings, said that Dubai is approaching the extreme boundaries of the growth model rooted in tourism, real estate and consumption, adding that the main problem in Expo 2020 is that it is not clear how it will help Dubai's growth after the temporary payment recedes. From construction and high numbers of tourists.