There has been a large change in the way that the economy has been seen in Dubai over the past few years. This has been very apparent from the cars that have been lining the parking deck that is full of many of the cars of expatriates who are no longer returning to the country as they are having economic issues.
In the area, there has been a slump in the oil prices that has led to a delay in the projects as well as many of the companies deciding to shut down.
When there is a material slowdown in the region as there is currently with oil, it is now beginning to affect the changes in the middle east. Dubai is not directly tied to the oil market but there is a change in the way that things affect one another because of the services that are being exported to the rest of the world. What that also means is that there will continue to be more change as there is more oil being purchased from other areas of the world such as from the west. The bailout that happened in 2009 with the help of Abu Dhabi is far from being a reality in the current situation and that means that there is no need to panic.
While things have not reached 2009 levels there is a debt for the city that is around 140% of the GDP based on the loan repayments that are currently owed through the end of 2018. What that means as well is that there are many firms that are going to need to monitor their bottom line and to cut in areas where it is needed.
The sectors of the economy which have been facing the largest slow down are in the areas of metal and construction and the delay has averaged around 4-7 months on any given project. In addition to that, there are many prospects that are also gearing up in order for the city to host the World Expo which is planned for 2020.
The families in the area have a very high cost of living which means that there are difficulties for many workers as the economy continues to slow. There are many other new sectors of work however that are continuing to open up for all workers and that are continuing to look promising for companies.
More companies are using technology as a means to be able to move to the cloud and this is changing the way that they are being able to interact with potential customers and leads. Customers who in the past would have just disappeared are now being funneled into automated systems which are ensuring that there is a great way to drive new customers into an automated process and ensure that there is real engagement with them at every point. Customers are seeing the difference and understanding the personal touch as well which is bringing reluctant buyers to the table in a slowed economy.