VZCZCXRO0544
RR RUEHDE RUEHDH RUEHDIR
DE RUEHAD #0609 1671301
ZNR UUUUU ZZH
R 161301Z JUN 09 ZDK
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 2611
INFO RUEHDE/AMCONSUL DUBAI 8317
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS ABU DHABI 000609 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN CASC CVIS ELAB PGOV SOCI AE
SUBJECT: THE ECONOMIC OUTLOOK FROM THE VISA WINDOW 
 
REF:  A) ABU DHABI 568 
 B) ABU DHABI 361 
 C) ABU DHABI 11 
 D) 08 ABU DHABI 1221 
 
¶1. (SBU) Summary:  As business and financial circles debate the 
extent of the economic downturn in the United Arab Emirates (Ref B 
and C), Consular Section patrons have a decidedly negative outlook. 
Beyond the impact on private Americans (Ref A), rising numbers of 
third country national (TCN) visa applicants in the UAE are 
reporting job losses, economic hardship, and canceled residence 
visas.  Many well-established firms and government entities are 
reportedly avoiding serious difficulties, but newer companies and 
contractors are struggling.  Employees in the real estate, 
construction, and hospitality sectors appear hardest hit.  End 
Summary. 
 
¶2.  (SBU) During a recent interview, a TCN working as an advisor in 
the electricity and water industry claimed that his sector is among 
the most stable in Abu Dhabi.  He explained that Emirati and TCN 
employment in government sectors like infrastructure, urban 
planning, utilities, and higher education has remained stable. 
Applicants report that the Abu Dhabi government, for example, is 
continuing to hire and retain employees at a regular pace.  (Note: 
As in many countries, UAE local and federal government entities are 
supporting the economy with fiscal stimulus (Ref D).  End Note.) 
 
¶3.  (SBU) The broader downturn, however, is spurring competition in 
the job market.  TCNs who were previously highly paid are now 
competing with colleagues to keep their jobs or maintain their 
portfolios as companies look to hire other qualified TCNs who will 
work for less.  As one applicant's spouse described it, "They hired 
me at a high salary because I'm British; now they want to let me go 
because I'm too expensive to retain".  Similar complaints have been 
heard from other applicants from Visa Waiver Program (VWP) 
countries. 
 
¶4.  (SBU) Many still-employed applicants said their portfolios were 
increased 2-3 fold to compensate for colleagues who had been let go. 
 Some applicants were informed that they should take holiday leave 
now because notices would go out this summer and unused vacation 
time could be cancelled as contracts are re-negotiated.  Another 
applicant working at a well established US engineering consulting 
firm explained that all of the firms' long term projects will 
continue as usual and they are carefully selecting new projects to 
avoid hiring new or firing long-term employees. 
 
¶5.  (SBU) Some applicants working in less stable sectors will list 
themselves as employed on their application, but will describe 
themselves as unemployed or "between jobs" when pressed by consular 
officers to describe their work in greater detail.  This is 
especially the case with applicants working in the real estate, 
construction, and hospitality sectors.  Many unemployed applicants 
are hoping to gain new employment over the summer and report plans 
to stay in Abu Dhabi until their residence visas expire, 
particularly if their housing has been pre-paid. 
 
¶6.  (SBU) When asked if they plan to work in the U.S., some 
applicants are bold enough to admit that they might look for work 
while on holiday in the U.S.  During a recent interview, two Cuban 
musicians who have been working at a local hotel for the past six 
months revealed that they hoped to look for work in Miami while 
attending a music festival.  They did not overcome 214b. Applicants 
who invested heavily in real estate - often planning to quickly sell 
for a profit - are now saddled with debt they cannot repay. A year 
ago, applicants proudly explained their real estate investments a as 
means of establishing ties to the UAE.  Even applicants of moderate 
income were pooling money with friends and coworkers to invest in 
new residential developments.  The economic downturn has transformed 
many investments from a financial tie to a financial burden. 
 
 
¶7.  (SBU) COMMENT: Anecdotes from visa applicants reflect broader 
public and private economic sentiments in the UAE: concern, but not 
panic. Despite the recent economic downturn, post's non-immigrant 
visa workload is up 25 percent this year.  While some TCNs may be 
seeking economic opportunities in the U.S., other applicants' 
business and vacation plans appear unchanged.  END COMMENT. 
 
OLSON