Salaries failing to keep up with inflation
October 3rd, 2007A recent report released by recruitment agency GulfTalent reveals that salaries in the United Arab Emirates are failing to keep up with increases in the cost of living. The report, Gulf Compensation Trends 2007, discloses that although salaries in the regions rose by 10.7% in the 12 months to August 2007, inflation for 2007 is forecast to reach 12%. The survey states that the rise in costs has been mainly due to a rent rises of 23% in 2007, despite government capping rents at 7%.
June 8th, 2008 at 4:10 pm
every boom has its collapse and every bubble bursts – it is a natural cycle, and the economy in dubai is not exempt from this cycle. when it will happen, many emirati’s and overseas investors will experience the negative equity burder so well known to the mortgage borrowers of the thatcherite era in UK. maybe the emirs of uae will bail out their subjects’ from their misery.
prognosis for a sustainable economy in dubai is doubtful, and the grandiose building are all high maintenance. maybe the emirs will bail out their city.