Is the crisis over in the UAE?

I got a call from one of the media reporters asking me whether I thought that the industry’s situation is getting better because they heard that an ad agency is in the process of hiring 20 people across the MENA region. In all honesty, I wish I could say yes confidently. What I could say though is that those agencies who land new business are hiring and those who are losing are letting people go. Just the way it always was. I could also say that it is not the same across the UAE or the Gulf.

Daily news about the financial sector in Dubai make the situation look not so promising. Banks are asked to boost their reserves and to embrace for the upcoming defaults on loans. Shops are giving out 50-70% discount. A car company has just announced that you can own a car by paying Dhs 30/day in an effort to boost sales and compensate for lack of lending and liquidity in the market.

On the other hand, Abu Dhabi is building a Ferrari Theme Park, museums and Sorouh one of the real estate companies there has just posted profit in the Q1 of 2009.

One thing for certain is that the public sector is trying to boost the economy by continuing with its efforts to build the infra-structure. The problem is with the scarcity of information on the economy and the financial situation in the region, one can only speculate to what comes next hoping that it is going to be positive.

What do you think?

~ by rafickd1 on July 26, 2009.