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Friday, December 18, 2009

Debt crisis not affecting Dubai economy; has little impact on OFWs


The Department of Labor and Employment (DOLE) today said the debt crisis in Dubai won't have a significant impact on the employment of overseas Filipino workers (OFWs) as the crisis is not expected to affect the economy of Dubai and the entire United Arab Emirates (UAE).

Labor and Employment Secretary Marianito D. Roque, citing a report from Labor Attache Virginia P. Calvez of the Philippine Overseas Labor Office (POLO) in Dubai, said that the debt crisis affecting the Dubai World, a major investment firm in Dubai,  is mainly viewed as purely a commercial concern with very little impact on OFWs employed with this firm.

Dubai World was set up as an independent commercial company that manages and supervises businesses and projects for the Dubai government across a wide range of industry that promotes Dubai as a hub for commerce and trading.   Last month, Dubai World announced that it is restructuring its loans and requested creditors for a six month grace period for payment. 

Roque said moves have promptly been set in place to address the problem in view of the fact that the Dubai economy is an integral part of UAE which is the second largest Arab economy.  

The UAE Central Bank recently moved to inject more liquidity into the UAE banking system to prevent worsening of the situation and subsequently sustain the Dubai economy.

The DOLE Chief has received assurance that the debt problem of Dubai World will have little impact on the jobs of OFWs employed in three of Dubai World affiliates.  One of them is Drydocks World which is accredited to two Philippine recruitment agencies and presently employing 4,000 OFWs.

DOLE has monitored no lay-offs of OFWs at Drydocks World.

Another Dubai World affiliate, the DP World, which is accredited to two Philippine recruitment agencies, is not included in the loan restructuring efforts.

Meanwhile, Istithmar World and Dubai Multi Commodities Centre have few OFWs processed on a name hire basis.  They are not accredited to any Philippine recruitment agencies.


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