Global financial crisis began on Wednesday when Dubai World, the developer of the three palm shaped islands, burdened with $59 billion in liabilities was requested to defer their debt by the government. This feared banks all around the world who invested on Dubai companies. Stock market plunged and workforce which composed mainly of expatriate employees fear the possible restructuring, layoffs and job losses.
Dubai which has an ultra-modern image with the luxury hotels, resorts and buildings have to be now put in cold web. Companies are holding back construction projects and foreign workers' passports until the economy stabilises. This leaves many with no money for food and shelter which triggers the thought of fleeing the country. However, there are news that the United Arab Emirates central bank is here for the rescue so the economy should be able to overcome the crisis in a short period of time.
We shall see by then...
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