Dubai Debt
Hi friends in this article let us see about the World Economic situation. Recession is the word which was used very often for the past one year and as a matter of fact I was able to understand the true meaning of the word, only last year after, knowing about the true face of recession. In spite of the bad economic condition all over the world, India still managed to keep things under control and most importantly when compared with countries like USA, the job cuts were less here, because lakhs of people lost their jobs and that too, the job cuts took place within a span of months.
The start of recession happened on September 2008 in USA, when the Lehman Brother Bank was bankrupted. This is a 100 year old bank and as a result of this bankruptcy, the markets crashed and more than that the economy of many companies were affected and many lost their jobs. Many experts believed that the reason for the recession is that people failed to pay their debts back and they suffered a heavy loss due to the subprime mortgage crisis. So many problems aroused due to this, both directly and indirectly.
America then had their new President and Obama promised that he will take the necessary steps to overcome the recession. Obama also revealed the idea of outsourcing, which directly affects the jobs of Indians in USA. So slowly and steadily the world is returning back to normal and the recession is slowly coming down and many countries have already started to move on a right track, as the economic status of the country is back to normal. Governments also helped many Banks and that also worked very well. So everything was alright, unit the Dubai Debt problem started last week.
So let us discuss the issue of what happened in Dubai and why markets started to slow down again. Dubai and many Arab countries are considered as the richest countries in the world and thanks to their abundant oil resources. Petroleum is the major source of income in this world for any company and so the reason is very easy why these countries are very healthy. It is also said that many countries ask their fund for the development and this proves that how wealthy these countries are? Many people, all around the world, just want to work there due to its abundant wealth and great working opportunity.
But at any point of time the natural resources will become extinct and there is no exception for oil as well. So the Government has decided to choose an alternative source of income, since the oil may be extinct from Dubai within a century. So Dubai has decided to go with an alternate way for its income and that is tourism. So tourism will replace Oil resource as the source of income for Dubai in the future and we have already seen some unbelievable architecture like Palm Island, Burj Dubai Skyscraper and these are truly amazing and fascinating.
“Dubai World” is a Government organization and reports say that they have borrowed a huge amount of money from many banks for its construction work and now it has asked an extension in time for paying its debts. Everyone knew the fact that Arab countries are rich and when the Dubai Government asked for a six months time for paying the debts, everyone was shocked and this also reflected in the markets all over the world, which finished red. It has been said that the “ Dubai World “ must pay an amount of around 3.7 Lakhs, crores ( which is around 85 billion US dollars ) and many experts believe that Dubai will come back to normal very soon.
There is lots of fear among the workers there, that they might lose their job due to this problem. Many Indian populations contribute majority of Dubai Working community and after this debt problem it is believed that there is a sort of fear among the people about their job. Mainly construction workers are affected, because due to this Debt the banks in Dubai may not encourage loans for people to but ne houses and as result of this this may put a halt to the Construction work and moreover the rat of the houses will also come down.
Recently I watched in news, which states that some of the workers had a long leave for Bakrid and so that they returned to India to be with their family. But the worst news is that, many started receiving SMS from the companies that they have been terminated form the company and no longer work in the company and the rest of the salary will be sent to them. Really this is a bad situation and this may also discourage those who have planned to work in Dubai, with a fear that their job may not be permanent.
So, let us hope and pray that the problem gets solved and those people who have lost their job will get a solution for this.
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