Foreigners abandon cars to flee Dubai : Apology notes, maxed out credit cards attached to some

[Liberal_in_LA]

An earlier version of this story was posted in DU last month. Updated story -

http://www.thepeninsulaqatar.com/Display_news.asp?section=World_News&subsection=Gulf%2C+Middle+East+%26+Africa&month=February2009&file=World_News200902082230.xml

Foreigners abandon cars to flee Dubai
Web posted at: 2/8/2009 2:2:30
Source ::: THE TIMES

Dust and leaves gather on cars abandoned at Dubai International Airport.


DUBAI: For many expatriate workers in Dubai it was the ultimate symbol of their tax-free wealth: a luxurious car that few could have afforded on the money they earned at home.

Now, faced with crippling debts as a result of their high living and Dubai’s fading fortunes, many expatriates are abandoning their cars at the airport and fleeing home rather than risk jail for defaulting on loans.

Police have found more than 3,000 cars outside Dubai’s international airport in recent months. Most of the cars — four-wheel drives, saloons and “a few” Mercedes — had keys left in the ignition. Some had used-to-the-limit credit cards in the glove box. Others had notes of apology attached to the windscreen.

“Every day we find more and more cars,” said one senior airport security official, who did not want to be named. “Christmas was the worst — we found more than two dozen on a single day.” When the market collapsed and the emirate’s once-booming economy started to slow down, many expatriates were left owning several homes and unable to pay the mortgages without credit. “There were a lot of people living the high life, investing in real estate and a lifestyle they couldn’t afford,” one senior banker said. Under Shariah, which prevails in Dubai, the punishment for defaulting on a debt is severe. Bouncing a check, for example, is punishable with jail.

There are increasing signs that the foreigners who once flocked to Dubai are leaving. “There is no way of tracking actual numbers, but the anecdotal evidence is overwhelming. Dubai is emptying out,” said a western diplomat. International schools are having to be flexible on fees as expatriate parents run out of cash.

[Ishoutandscream2]

1. Greed sucks

It's terrible.

[gratuitous]

2. Maybe it's time to re-think that Sharia thing?

Hard time in jail or flee the country and leave whoever holding the bag? Sounds like a no-brainer for a foreign worker. Surely the Sultan of Dubai doesn't have to worry about a few bad debts (I'm guessing), but some of the other common folk might not be quite so able to shrug off a bunch of defaults.

[JCMach1]

14. Not so bad... lose your job then just leave town straight away!

[Aviation Pro]

3. The UAE is situated in one of the most volatile areas of the world....

...with Qatar to the northwest, Saudi Arabia to the west and Iran about 90 miles to the north of Dubai it pretty much guarantees that despite the emirates efforts the country will not be able to sustain its lofty goals.

This is just a symptom of overreaching goals from a small country.

[Bobbieo]

6. On top of it all, the rising sea levels are going to flood those man made

fancy palm tree or whatever shaped islands. Shit still happens!!!

[Liberal_in_LA]

7. Lebanon is thinking of building some fake Dubai-like islands but environmentalists are protesting

[JCMach1]

15. Dubai leveraged too much of its future oil revenues and so

finds itself in a BAD place...

[w4rma]

4. And down goes the 'free' market utopia that the right-wingers were trying to build. (nt)

[jwirr]

5. And poor Halliburton just moved their headquarters there. Maybe

they will have to come back to the US and face the music here. Or better yet maybe they will be homeless.

[Sal Minella]

8. They should be allowed to come back, provided they repay to the U.S. treasury all the taxpayer

monies they've taken illegally, and promise to stop building facilities that kill U.S. troops.

[47of74]

9. Yes, they should be required to repay us for their crimes

But I want there to be a one thousand year ban on them performing any work for the Federal Government.

[Sal Minella]

17. Sounds good. Lets do it.

The burden on U.S. taxpayers would certainly drop dramatically, eh --

[BlooInBloo]

10. But they aren't irresponsible borrowers - always remember that...

It's only the lenders, never the borrowers.

So say genius DUers.

[JCMach1]

16. If your choice is go to jail or dump the car and get out of Dodge

Ummmmm, I would get out of Dodge.

[backscatter712]

11. Down in Dubai, they have debtor's prisons.

If you default on your debts, you go to jail.

If you're an expat, and you're late on paying your credit card payment, the bank calls the Dubai border control, and your exit visa is yanked - you can't leave the country!

That's the Charles Dickens society the neocons want to bring to the U.S. You know that if they thought they could push it through Congress, they'd bring back debtor's prisons here.

[kestrel91316]

12. I have a client who moved back to the US after about 10-15 years

in Dubai last year. She likes to plead poverty but they live in a VERY wealthy neighborhood, lol. Probably lived there for the tax haven bennies.

I and a number of friends and clients could teach THAT lady a thing or two about poor.

[JCMach1]

13. Story was at least partially debunked this week

What the truth is???


http://usa2uae.com/2009/02/07/curiouser-and-curiouser-dubai-police-deny-the-abandoned-cars-at-airport-story/

Things are bad enough here you don't really need to stretch the truth.


Here is some of the 'for real' truth"

…He believed that the confidence level in the UAE had gone down at the rapid pace. “The sudden exit of external funds that entered the country on speculation of a currency revaluation resulted in a sharp contraction in liquidity as well as asset-price deflation. This has created a wealth effect. People are not spending either because their assets have depleted or they are uncertain about the future,” Ahmed said.

He said that the UAE would be facing a sharp decline in its current account situation — from a $40 billion surplus in 2008 to a deficit of $15-16 billion in 2009.

The IMF, which has revised its growth forecasts downward four times in the last eight months, said oil exporters in the region, including Algeria, Iran, Iraq, Libya, Sudan and Yemen are likely to turn current account deficits amounting to $30 billion in 2009 after posting $400 billion in surpluses last year.

“Like the UAE, many countries in the region are willing to turn fiscal deficits this year to help their economies weather the crisis,” he said warning that many of the oil producers would run budget deficits if oil prices average $50 a barrel. However, he predicted that oil prices would stay at $50 through 2009 and $60 in 2010.

On why the IMF and other international agencies could not foresee the collapse of the global financial system, Ahmed said his organisation had warned of the dire consequences of the global imbalances and the danger of excessive securitisation. “What we couldn’t predict, however, is the dramatic collapse in business confidence.”

Ahmed believed a realignment of the global financial architecture was on the cards, and said he favoured an internationally coordinated approach in averting similar crisis in future than the creation of a single global financial supervisor.

According to him, a possible global recovery in 2010 was “contingent upon a series of measures.” Worldwide, strong and coordinated policy efforts are needed to revitalise the economy. The financial sector needs to restore normal functioning, monetary policy needs to unlock key credit markets and fiscal policy must be timely and stimulus implementation must be coordinated.”

As long as oil exporters in the region maintain their spending and investment plans, the impact of the global slowdown on their own growth, and on the prospects for the region, will be partly cushioned.”

Ahmed said the IMF had to significantly revise down its growth forecasts since November. “In 2009 there will be no growth in the world, the world economy will be at a standstill and advanced countries will have negative growth and while emerging markets will have some growth there’s virtually no growth overall. This is the worst economic outlook that has been produced by the IMF since it has been created,” he added… http://usa2uae.com/2009/02/09/imf-has-some-good-and-bad-news-for-the-uae/

Bad enough I think.

[anonymous171]

18. I hope they tripped on their way out. nt