Jane Coutts’s monthly ritual has been the same for the past two years: to sit on the terrace of the Lime Tree Cafe in Dubai with a close friend and watch the world go by over coffee and cake. There is one key difference now: her pal has fallen victim to the recession and left the UAE, leaving her to sit and contemplate her future in the country alone.

But while her circle of friends might have changed, the 57-year-old housewife from Australia remains pragmatic about the extent to which the UAE has been affected by the recession.

Expatriates held their collective breath as they waited for the predicted mass exodus over the summer months. With continuing uncertainty in the jobs market and many parents waiting for the end of the school year before packing up their lives in the sun, it seemed that everyone was waiting for the axe to fall.

The landscape has undeniably changed. Some did lose their jobs and return home, wondering what had happened to the Dubai dream.

Those families left behind have tightened their belts, cut back on extravagant or unnecessary spending and been more cautious about investing.

But what they haven’t all done, contrary to the predictions of the fearmongers, who forecast a huge migration, is leave.

Like many of those who have refused to give in to the uncertainty of a life thousands of miles from their homelands in the face of the economic crisis, Mrs Coutts has stuck resolutely to her guns and weathered the storm.

“There have certainly been people I know who left over the summer but an exodus is normal during those months,” she said.

“It is always quieter over summer, but the question was whether anyone would come back. Everyone was predicting schools would be half-empty but that has not been the case and traffic is back to normal.

“People have left but there are new people coming in. The recession has definitely had an impact on life here – rents have gone down and people are less extravagant.”

Mrs Coutts, whose husband is a property consultant, said the family had made some changes to their lifestyle.

“Last year we went on holiday for a month, but we agreed as a family that we could not afford to do that this year. We are more cautious about spending money because we are not sure about the future. But we are still here and quietly confident the UAE will survive.”

According to Donald Trump Jr, speaking at a notably subdued Cityscape in Dubai this week, the city had been unfairly painted by critics worldwide as a “dust bowl with no lights turned on”.

So what of the bleak images of deserted roads, empty schools and droves of unemployed expats dumping their cars at the airport, leaving trails of debts in their wake?

It simply did not happen, according to Simon Williams, the chief economist at HSBC bank in the Middle East.

“An awful lot of people with very little information were suggesting very strongly that there was going to be a mass exodus from the UAE, and Dubai in particular, when the school year ended. That did not materialise,” he said.

“The big downturn in employment came at the end of last year and the first four months of this year. The data is not there yet but we can all see what is around us.

“My very strong conviction is that the storm is largely over.”…SOURCE

The city will not become a better place to live until all sections of society address its unhealthy market atmosphere, the emirate’s police chief told a discussion group yesterday.

Lt Gen Dahi Khalfan Tamim said at the meeting, which included representatives of property, hotel and hospitality companies, that the community needed to work together to improve the quality of life for all.

“We are in the midst of an economic crisis and everyone knows its impacts,” he told the group at police headquarters, called together to discuss problems and solutions for the city.

“We have started to sense it with, for example, increasing rent prices which have created a serious source of worry for many people.

“For this, we felt the need to launch a campaign, an initiative, which will aim to have the benefit of the individual and the country at its core. When people spend all their salary to eat, drink, pay rent and educate their kids without having any savings, that is not right.

“The aim is to make Dubai a good place to live in, visit and work in and to give security to as many jobs as possible that have been affected.

“There should also be less pressure put on businesses so that they are not forced to let people go.”

Gen Tamim suggested that some business owners, driven by greed, had contributed to the economic downturn.

“What is a reasonable percentage of profit which should be gained by a trader? There has been a big case of exploitation from people and the phenomenon has become totally unnatural.

“The leap in rent prices involves not just new developments, but also old ones. This situation existed before the crisis but I have noticed that it continued even after the crisis.

“Why is it that a one-bedroom flat bought for Dh450,000 (US$122,514) needs to be sold for Dh1 million? This is a big thing. Why is Dh1m not a good enough profit for some?”

Gen Tamim said that, to create a healthier market atmosphere in the city, prices should be affordable to the masses, which would also lead to improved tourism.

“To secure a lasting trade industry, prices should be affordable and reasonable,” he said. “Dubai has many advantages that many other GCC or Arab countries do not have.

“However, under these circumstances we should work in a different manner and lowering hotel prices is key, as the entire market is linked to tourism.

“The tourist who arrives and who needs accommodation is also the one who would be renting a car and buying from shops. It’s a cycle and they are all linked.”

Sheikh Khalid bin Zayed bin Saqr Al Nahyan, chairman of the executive committee of the Dubai Economic Council, said there should be a balance between prices and services so that most members of society could benefit, not just the rich…SOURCE

With just a fortnight to go, the mother of all shopping festivals — the Dubai Shopping Festival 2009 (DSF) — is coming back to town.

Scheduled to begin on January 15, the 14^th edition of the DSF is set to open at a time of global financial turmoil, but the organisers say DSF 2009 will deliver.

Dubai looks her best during the DSF when every nook and corner of the city is lit up with over a million lights and colourful decorations.

Over 3.2 million people visited DSF 2008 with the expenditure touching Dh10 billion.

The participating retail outlets of the DSF and the various shopping malls are expecting a windfall. With the December sale already in session at the various retail outlets across the city, products are being sold at discounts of over 70 per cent.

Though they have not yet announced the promotional offers for the season, retail outlets have pledged their entire support to the DSFO (Dubai Shopping Festival Office) by lining up attractive discounts and raffle draws to lure the crowds into the shopping malls and retail outlets.

Shaikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Airports and Chairman of Dubai Shopping Festival Office (DSFO) Supreme Committee said the UAE economy is robust enough to ride out the current difficulties and continue to achieve good economic growth rates.

“There is a tireless endeavour to tackle the economic turmoil and hold events that can contribute to reviving several economic sectors, primarily retail trade and tourism,” he said.

“This year’s edition of DSF comes at a time when the entire world is experiencing an acute period of economic crisis with a number of leading world economies having drifted into economic recession.”

He stressed on the importance of strong partnership between the private and public sectors…SOURCE