United Arab Emirates: Dubai expatriate allure fading

Subject: Questions over Dubai's continued attractiveness to Western expatriates.

Significance: Dubai's reputation as an open, Western-friendly Arab country has suffered setbacks over the past few months as the negative impact of the financial crisis has been compounded by a series of new legal measures and changing social norms. This could have a significant impact on Dubai's ability to attract foreigners from the West. Go to conclusion

Analysis: Dubai has built a reputation for being an innovative global centre for tourism and business. However, its ability to maintain this is in doubt with the advent of the financial crisis and rising unemployment among its native population, coupled with heavy debt burdens due to bailouts by its more conservative neighbours, Abu Dhabi and Saudi Arabia. The cost-benefit analysis that goes into expatriates' decisions to relocate to Dubai is shifting as the benefits become fewer and the costs -- in terms of giving up rights and lifestyle -- increase.