Dubai crisis has continued to deepen since the Dubai government doesn't guarantee the debt of the investment company "Dubai World" which was reported to have negotiated posponement of paying its debts to the Dubai government a couple of months ago. Dubai's financial minister commented on that by just saying that despite of the fact that Dubai World Company is in possession of the government, investors finance the organisation at their own risk and therefore are responsible for their actions.
Dubai crisis should be dalt with as fast as possible because more and more investors quit their businesses in a matter of the insecureness of the stock market, which, actually, is rapidly shrinking at the moment and financial losses are having a serious impact on the UAE (United Arab Emirates) economic investment bank.
Bankruptcies of massive businesses cause unseen job cuts, having extremely negative effect on UAE economy and the growing Dubai crysis has impact even on world's econmic structure. The complicated situation, caused by job cuts, leads to the massive deportation of workers, made redundant due to investor's inability to pay them, and deportation costs money. The deportation of thousands of laborers, mainly from India and Pakistan is almost unavoidable and it is actually only a matter of time when all those people will be made redundant and forced to leave the United Arab Emirates for good. This, however, will eventually lead to worker's deficiency and the few investors who will continue to expand their businesses will encounter many difficulties in the seek for professional staff, forced to frost their projects or get into debts with NBD (the largest bank in the United Arab Emirates) , importing cheap and unproductive labor, which will negatively influence results and lead to low job quality.
Abu Dhabi (the senior and controlling Emirate in the UAE) is, however, expected to soften the blow of the Dubai crisis because recent reports have proven that Abu Dhabi has the financial potential to support its property companies and banks. Abu Dhabi is ready to assist in the prevention of long-term deepening in the Dubai crisis as a whole, but only time will show whether there wll be a stabilization in NBD and its inner structures.
Dubai crisis should be dalt with as fast as possible because more and more investors quit their businesses in a matter of the insecureness of the stock market, which, actually, is rapidly shrinking at the moment and financial losses are having a serious impact on the UAE (United Arab Emirates) economic investment bank.
Bankruptcies of massive businesses cause unseen job cuts, having extremely negative effect on UAE economy and the growing Dubai crysis has impact even on world's econmic structure. The complicated situation, caused by job cuts, leads to the massive deportation of workers, made redundant due to investor's inability to pay them, and deportation costs money. The deportation of thousands of laborers, mainly from India and Pakistan is almost unavoidable and it is actually only a matter of time when all those people will be made redundant and forced to leave the United Arab Emirates for good. This, however, will eventually lead to worker's deficiency and the few investors who will continue to expand their businesses will encounter many difficulties in the seek for professional staff, forced to frost their projects or get into debts with NBD (the largest bank in the United Arab Emirates) , importing cheap and unproductive labor, which will negatively influence results and lead to low job quality.
Abu Dhabi (the senior and controlling Emirate in the UAE) is, however, expected to soften the blow of the Dubai crisis because recent reports have proven that Abu Dhabi has the financial potential to support its property companies and banks. Abu Dhabi is ready to assist in the prevention of long-term deepening in the Dubai crisis as a whole, but only time will show whether there wll be a stabilization in NBD and its inner structures.
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