Dubai's Expats Leaving the City

Millions of foreigners across the Gulf are facing a tough time due to the pandemic and a plunge in energy prices forcing economic adjustments. Wealthy Gulf Arab monarchies have, for decades, depended on foreign workers to transform their cities. Many grew up or raised families here, but with no formal route to citizenship or permanent residency and no benefits to bridge the hard times, it’s a precarious existence. The impact is starkest in Dubai, whose economic model is built on the presence of foreign residents who comprise about 90% of the population. It could lose 900,000 jobs and see 10% of its residents uproot. Dubai’s main challenge is affordability. The city that built its reputation as a free-wheeling tax haven has become an increasingly costly base for businesses and residents. Weak demand means recovery will take time. Unlike some Middle Eastern countries, the UAE isn’t seeing a resurgence in Covid-19 infections as it reopens, but its reliance on international flows of people and goods means it’s vulnerable to global disruptions.