Financial Crisis In Dubai Can Affect Kerala?
November 29th, 2009 - 8:33 pm ICT by GD
- By Meena Kar
Nov. 29, (THAINDIAN NEWS) The recent reports of financial crisis in Dubai that has surfaced has panicked people in different parts of the world. People are already facing a tough economic situation after the global recession of last year and considering the effects of Dubai’s crisis on the world economy has panicked them further. However, the financial experts of many countries, after analyzing the initial reports of the crisis, have assured people that the world economy would not face a jolt for this economic condition in Dubai.
Mr. Pranab Mukherjee, the finance minister of India in his statement to the media, assured countrymen that the financial crisis in Dubai will not affect India. Still there are anticipations that Kerala might face financial turmoil for Dubai’s adverse economic condition. According to the reports of the sources, numerous people in Kerala are engaged in different firms based in Dubai and the sudden downturn of Dubai economy might make them unemployed. Sources also stated that several people in Kerala for a considerable period of time have taken up jobs in Dubai and are now speculating about their future condition.
To reduce the worry of Indians, the Indian Finance Minister stated that Indian economy does not have very deep connection with Dubai and so the states might not face a hard time. He said that people should not get panicked seeing the economic conditions of Dubai as “India’s exposure to Dubai’s financial systems is limited.” Though the finance minister has tried to reduce people’s trauma, the families that earn their living from Dubai are still panic-stricken.
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Posted in Business, India, |
November 30th, 2009 at 8:31 am
Mr. Vayalar Rai is very optimistic that the workers from Kerala need not have to worry. How he came to that
conclusion? Majority of the
people from India working in
Dubai are from Kerala, and the
majority of them are in
construction jobs. Dubai is
in a financial crisis. Now one
company Nakheel’s problem is
revealed, but many other projects are advancing in the
same direction. Without a
massive infusion of loans
to Dubai from other sources,
Dubai will be getting into
a serious economic domino game.
In this fight for a critical
survival, thousands of emplopyees from India and other
countries will have to leave the
country, and many of them will
be from Kerala. It is a sad
reality, but simply face it. The Government of India
in co-operation with the government of Kerala must
take drastic measures to help these helpless people returning
from Dubai.
Egypt made pyramids out of the
sweat of the Hebrews, likewise
the sweat of these working class
made a dream city called Dubai.
Now they need to face the
illfate of an unexpected exodus
due to the worldwide recession
which was not warned
by any economist in the world.
It came straight from God in
a total mystery.
November 30th, 2009 at 10:22 am
I think the situation in Dubia is very grim and at bioling point. since the major exposure in Dubia was into real estate, which saw an exsubanrent growth rather than a steady growth. The growth was not in a gradual phase. As a result the rise is getteing corrected. The realty Sector was looked as a source of investment to make windfall gains. Till begining of 2005 realty sector was looked at as part of investment portfolio. now it has become the major one. As a result every one invested in it to make profits. If every one becomes a seller who will become the buyer. Now there is correction going on which will settle at that stage where it suppose to be if it had a gradual and steady growth.
November 30th, 2009 at 6:51 pm
The fact is Dubai diverted from their strong business areas from Trading in to Real Estate business, were they built many building which was much more than the demand in the market. At the same tiem they made all costly for a trader or for a middle class person. So they foget traditional business (trading) and every one went behind real estate. Still they are holding the impression that crisis hasn’t effected them. Every part of the world accepted the reality and taken the measures, But dubai their eyes are still closed. Let them realise the situation and take the corrective action.
November 30th, 2009 at 7:40 pm
I do agree with both of you.
Several factors are involved
with the present crisis of Dubai. Oil price plummeted,
on the other hand, their
construction parade was
without any reality and direction. They put all the
eggs in one basket thinking
that millions of tournists with
plenty of money will be landing
in Dubai and burn money like
nothing. But the world recession changed the equation
and shattered the dream.
When a country or a person is
trying to have the best of
everything in the shortest
span of time, many decisions
will go wrong, borrow more than
they can pay back.
But, when the pay day
comes, they will understand the
pain. Let us hope that the
gulf countries may take strong
monetary actions to rescue
Dubai from the current crisis.
Because, if this is not solved,
it will lead to more problems
shortly.