Job loss fears grow amongst UAE employees

Breaking this percentage down, 8% claim to have already lost their job or have been made redundant and 17% think this is likely to happen to them in the coming 12 months.

UAE job confidence
There were a further 21% who didn't know what was likely or unlikely in the coming 12 months, possibly reflecting the speed and unpredictable nature of the global economic downturn's impact in the UAE.

Dan Healy, the CEO of Real Opinions who conducted the survey: 'Certain companies have been relatively high profile with their redundancies and scaling back of projects in the media.

'However, it often has a delayed multiplier effect with many of their suppliers and sub-contractors also being impacted and having to take similar but not as well publicized actions to reflect market conditions as they unfold.'

New UAE business startups
Another alternative considered likely for 34% of expatriate workers in the coming 12 months is the idea of starting their own businesses with a further 11% claiming to have already done so.

Healy added: 'We expect expatriate workers to follow where the investment money flows.

'If their present employer is unable to cope with the changes in the marketplace, the research results suggests that employees are taking up the challenge themselves. This done by setting up their own companies, believing they are more flexible and adept to benefit from these changes and in turn increasing competition for certain industries.

If left to market forces, we may witness the proliferation of small businesses.'

UAE business startup capital
To capitalise on the intention of so many expatriates intending to set up their own businesses, the speed and cost of which they can do this will be key for the UAE authorities to capitalise upon.

Expatriate entrepreneurs are likely to have limited budgets, so there is a challenge for not only them but the UAE authorities to ensure the facilities and structure exists to help nurture them and retain their expertise and contribution to the economy in the UAE.

Healy commented: 'The potential for small businesses to thrive in the UAE is significant. Without corporation tax and other statutory paperwork required here compared to Europe for example, this allows entrepreneurs to concentrate on business rather than paperwork.

'The Internet also presents a great opportunity for many organisations to be based in the UAE while still offering their services to a global marketplace.'

See also
Four in 10 expat employees ready to leave UAE
Business outlook 2009 shows tightened times for GCC
Dubai employers make cuts as downturn deepens