The UAE has always been something of a revolving door for expatriate workers. Many people have come here for a few years to achieve a financial or career goal and then moved on. Usually, they return home with a better bank balance, an experience they will remember for a lifetime and the sense that they have contributed something worthwhile to this country. But now things are a little different. Rather than choosing to leave once they have met their targets, some expatriates say they are being forced out early because they have lost their jobs or their work benefits, or because of the rising cost of living.
It is certainly true that some companies have downsized and others have cut workers' benefits, including school and housing allowances, frozen salaries and put promotions on hold. At the same time, there have been increases in grocery prices, utilities, rents and education fees. As The National has reported, some expatriate families have reached a tipping point at which living here is simply not viable.
All of this is the result of a change in the economy that arrived sooner than expected due to the sudden collapse of world oil prices. In that regard, the UAE is by no means the only country feeling the pinch and the Government has acted appropriately to address the revenue decline with a basket of measures, including cutting costs and introducing or increasing fees. But those changes have inflicted some economic discomfort across the population.
The problem is that when such measures cut too deeply and too quickly, they can have a significant impact on the economy. The Government faces a difficult balancing act to keep the economy moving forward while, at the same time, re-tooling itself for the future. If the population drops dramatically, the knock-on effect will be felt everywhere that money is spent: landlords will not be able to find tenants for their properties and shops, hotels, restaurants and other businesses may have to lay off staff or close altogether.
The Government has already made some tough but necessary decisions. Measures have already been taken towards diversifying the economy for a post-oil future. Indeed, cuts and efficiencies made now could well have a positive effect in the long run.
There is good reason to believe that the future will be bright both for Emiratis and for those expatriates who stay and continue to lend their expertise to the country. For now, however, there is a painful adjustment to be made by all of us.
