In Gulf, Rich Get Richer while Poor Get Poorer (life in Dubai)

[Gloria]

From the new World Media Watch up now at http://www.zianet.com/insightanalytical
Tomorrow at Buzzflash.com



5//Middle East Times, Egypt March 6, 2006
http://www.metimes.com/articles/normal.php?StoryID=20060306-075611-4915r

IN GULF, RICH GET RICHER WHILE POOR GET POORER

Natasha Bukhari, Middle East Times

DUBAI, United Arab Emirates -- Dubai never stops; construction, growth, business and an overall buzz have distinguished this city from all others in the region. The United Arab Emirates (UAE) in general and Dubai in particular continue to boast phenomenal achievements that include being the business center of the Middle East and recording the highest gross domestic product (GDP) in the world.

On the surface, Dubai may appear like one of the best places to make and save money. After all, it did post nearly 17 percent growth in GDP in 2004, the highest in the world, while in 2005 its sister emirate Abu Dhabi held the honor of having the highest per capita GDP in the world at $46,185.

But while the UAE seems to top the world in growth, it is also competing to become one of the most expensive places in the world. Residents complain that the impressive growth rates are being threatened by the ever increasing cost of living.

Spiraling inflation, economic experts warn, will slowly eradicate the middle class in the Gulf, where the cost of rent, utility charges and even foodstuffs have increased by an average of 10 percent during the past two years.

Dubai is a prime example of overwhelming price hikes. Commodities are becoming more expensive while salaries are not increasing. Residents of the emirate are now bitterly complaining that the cost of living has become too high to sustain with their stagnant salaries.

"With rents increasing by 15 percent every year, everybody is asking for a salary rise," wrote one disgruntled resident in a Dubai daily. "There are, however, companies which do not bother to give a raise in eight years although the cost of living has increased by 400 percent during the same period."

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[soothsayer]

1. Dubai was one of the Amazing Race stops once. It's GORGEOUS

and modern!