HONG KONG: For lawyer Wilfred Goh, the sign it was time to leave Dubai came early in 2009, when the financial crisis took its toll, plunging the emirate s main stock index down roughly 70 percent in a matter of months. After speaking to friends and government officials, Goh decided to return to Asia, with the thought that Hong Kong, China or Singapore offered better job opportunities. Goh, 47, eventually got a job back home in Singapore. We just felt Dubai s economic climate was not very good and they had started to retrench people, said Goh, who works at the Central Chambers Law Corp in Singapore. The flight of top foreign work talent from the Gulf s financial hub began in early 2009, and leveled off as the market recovered toward the middle of the year. But then Dubai dropped a bombshell in November, disclosing a delay on a massive debt pile. The $26 billion debt debacle sank Dubai s markets and spurred many foreign professionals to hasten their retreat from the city-state for more job security. Precise numbers of job losses is unknown, but estimates say thousands of foreigners have been fired or forced to leave Dubai this year. The defection of executives from Dubai to places such as Hong Kong looks to reverse a trend seen about four years ago when financial and legal executives from Asia flocked to the emirate to capitalize on its rapid expansion and economic growth. Dubai s zero percent tax rate also helped lure executives. Not all foreign workers are shipping out. But should the situation worsen, a further brain-drain from Dubai could have serious implications for its economy. Estimates say that expatriates make up more than 80 percent of Dubai s 1.7 million population. On Nov. 25, Dubai requested a delay in payments on $26 billion in debts linked to conglomerate Dubai World and its two property units, Nakheel and Limitless. The news was especially bad for Nakheel, which cut 400 jobs in July on top of the 500 jobs it eliminated in 2008 after Dubai s property sector sank. Stock indexes in Hong Kong, Mumbai, and Shanghai rose at least 50 percent this year. Dubai s rose around 13 percent. Its stock index hit 8,500 points in November 2005, dropped, and rose back up to 6,300 points by February 2008. The index is now trading around 1,800 points. Thirsty for jobs Kara Keough, a marketing manager for an international real estate company, moved from Dubai to Singapore in September after completing a three-year contract with a major property developer. My husband and I decided to evaluate our long term options. Job opportunities in Dubai were becoming rare, she said. Keough, 26, and her husband, who works in recruiting, moved to Dubai from Brisbane, Australia in 2006. The couple ultimately decided Singapore would be a better city to live and work in. Still, others see promise in Dubai s economic future despite the recent turmoil. Steve Brice, head of global markets for Standard Chartered in South Africa said fears of a large exodus of financial service professionals were overblown. Assuming you can keep your job in Dubai I don t see any problems of the long term viability of the region, Brice said. Brice left Singapore for Dubai in August 2005 to become head of research at Standard Chartered for the Middle East and Africa. Obviously oil prices are still very high and don t look like they are going down significantly over the next 5-10 years, said Brice who moved away from Dubai for personal reasons. In that environment I think the region is still going to thrive and Dubai is still the financial and trading hub for that region. Brice s colleague Philippe Dauba-Pantanacce was also optimistic. Despite the noise surrounding Dubai s debt debacle, this region is still one of the most resilient and promising regions in the world, said Dauba-Pantanacce, a senior economist at Standard Chartered who has worked in Dubai for two years. Where they are optimistic, others are however packing up. A senior executive at a multinational company and his wife who have worked and lived in Dubai all their lives said they are planning to move to Singapore in 2010. We would rather experience the professional working environment in Asia, she said, adding that Asia s growth prospects were also a major factor. A senior executive at the National Bank of Abu Dhabi who moved to Abu Dhabi from Dubai after 11 years said the prospects for Dubai are dim. Both the executives did not want to be named because of the sensitivity of the matter. Companies are unable to raise finance, job opportunities have disappeared, the real estate industry is in quagmire and tourism is down, said the executive.
