Dubai, Nov 29 (THAINDIAN NEWS) Dubai, one of seven states that make up the United Arab Emirates (UAE), is in a deep financial crisis. There is a huge $59-billion debt in the financial sector of Dubai World, which is one of the largest global conglomerates, is a major cause for worry, as the region accounts for around 50% of the country’s $25-billion remittances.

The economy is in a bad state as the banks have stopped lending and the stock market has plunged 70%. The economic despair is evident everywhere as luxury hotels are three-quarters empty. Shopkeepers in newly built malls are reporting a substantial drop in sales. Houses and cars are for sale too almost everywhere.

There has been a drop in property sale too, so half of all the UAE’s construction projects, which are worth about $582bn (£400bn), have either been put on hold or totally cancelled, thus there is a huge trail of semi finished towers on the outskirts of the city stretching into the sandy desert.

There is a tower which Donald Trump promised would be “the ultimate in luxury”, which is a $100bnresort complex by the beach, and four huge theme parks and an artificial island developed by the state company Nakheel, but this luxury tower is in trouble too.

The Dubai crisis has lead to a big cause for worry and a panic situation too, in the financial market as banks and financial firms lost in markets across the world. Economic slowdown will affect the sales force too, in huge measures and the biggest casualty are going to be the Indian labor force which will be directed affected by the Dubai financial crisis.

“The Middle East meltdown has been there for the past one year. People have been coming back to India for the past one year,” said E. Balaji, director of a leading headhunting firm, Ma Foi Management Consultants.

“Now, there will be at least 25-percent contraction in the job market. There may be a ripple effect on most Middle East countries because of Dubai World bust,” Balaji.