Laid-Off Foreigners Flee as Dubai Spirals Down

Asheron

DUBAI, United Arab Emirates — Sofia, a 34-year-old Frenchwoman, moved here a year ago to take a job in advertising, so confident about Dubai’s fast-growing economy that she bought an apartment for almost $300,000 with a 15-year mortgage.

Now, like many of the foreign workers who make up 90 percent of the population here, she has been laid off and faces the prospect of being forced to leave this Persian Gulf city — or worse.

“I’m really scared of what could happen, because I bought property here,” said Sofia, who asked that her last name be withheld because she is still hunting for a new job. “If I can’t pay it off, I was told I could end up in debtors’ prison.”

http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html?ref=world

SouthCoast

For many expatriate workers in Dubai it was the ultimate symbol of their tax-free wealth: a luxurious car that few could have afforded on the money they earned at home.
Now, faced with crippling debts as a result of their high living and Dubai’s fading fortunes, many expatriates are abandoning their cars at the airport and fleeing home rather than risk jail for defaulting on loans.
Police have found more than 3,000 cars outside Dubai’s international airport in recent months. Most of the cars – four-wheel drives, saloons and “a few” Mercedes – had keys left in the ignition.
Some had used-to-the-limit credit cards in the glove box. Others had notes of apology attached to the windscreen.

http://business.timesonline.co.uk/tol/business/markets/the_gulf/article5663618.ece

456789

@SouthCoast - free cars!!

edit: well at least until the financers caught up with you unless you changed the numbers on it etc. but thats not exactly...:p

spuds_2

The Dubai boom just seemed so unrealistic that it could never last. I suppose people who bought and sold will have made money, but I would think if you have a recent purchase or incomplete property you are looking at a big loss. I could never understand the appeal personally either for holidays or to live there.

robin_banks

Built on sand in more ways than one.

A godawful place.

Mr_Matey

You often hear people say that under Sharia law losing a hand for stealing is an effective deterrant.

I wonder what their views on debtors' prisons would be. It could be argued that such harsh punishments could have prevented the current economic crisis to an extent.

Personally, I think it's a horrible idea. I've heard that when they had them in the UK you accrued debt for your gaoling costs, making it very hard to get out unless a friend or relative bailed you out.

Hectors_House

Mr_Matey wrote: »

Personally, I think it's a horrible idea. I've heard that when they had them in the UK you accrued debt for your gaoling costs, making it very hard to get out unless a friend or relative bailed you out.

Here in Nottingham The White Hart pub in Lenton used to be a debtor's prison.Back in those days the area around was fields and parkland and the building also served as a coffee house. There is a story about someone being taken there by his friends when he visited the city. He heard someone calling from behind a door whilst sitting outside enjoying his drink. It was a prisoner who told him how hard life was and that they had to pay for everything but were allowed to beg for money.They still have a leather stretching machine in one of the rooms not used by the public so they could earn a little money.I know folk say we should bring these institutions back but I don't see where it would help. Even the workhouses were made deliberately bad to encourage those poor souls that ended up in them to leave as soon as possible.

Rock_Hard

spuds wrote: »

I could never understand the appeal personally either for holidays or to live there.

Plenty of sun, sea and no tax?