Jobs, Careers, Employment, Aarknet

The global financial crisis has reached the Persian Gulf which is expected to result in major job losses in early 2009. According to economic consulting firm, around 30,000 jobs disappeared in the region in the last quarter of 2008 and another 30,000 jobs are expected to be lost in the first quarter of 2009.

The collapse in oil prices means that the UAE is likely to run a budget deficit despite the government forecasting a balanced budget for 2009. Dubai will be worst hit out of all the emirates in terms of job cuts, because it relies heavily on banking and real estate industries. This situation, however, is expected to recover in the year 2010 according to economic forecasters and analysts.

A senior Saudi business leader denied on Monday that falling oil prices will hit infrastructure spending and the planned economic cities in Saudi Arabia. Lowering oil prices will not derail Saudi’s massive push to diversify its economy by building six multi-billion dollar economic cities by 2020. The cities, currently under construction, will contribute $150 billion to GDP growth and will create 1.3 million jobs, it is estimated.

While the rest of the world struggles to cope with the economic crisis, Qatar is planning to announce its largest ever budget for 2009 with an increase in spending on development projects, it was claimed on Monday. At least 40 percent of the budget allocation is expected to be diverted to development projects that include Infrastructure, health, education and housing.

A Kuwait state fund is seeking long-term share investments, as the Gulf state’s central bank urged more efforts to face global turmoil. The government and central bank have launched a series of measures to boost confidence in the stock market and banking system.