DM Blog (Dubai Marina)


Dubai luxury for only $0.80 per hour, Thank the Laborers!

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Tuesday, May 23, 2006

Executive Bachelor

1 bed space in a furnished room in JVC Building, Bur Dubai - available for a Muslim executive bachelor. Rent Dh 450/- P.M. including W/E. Contact 050-473...

An unflattering look at some of Dubai's other realities.

To those not in the know, the phrase "executive bachelor" is a classic oxymoron. It refers to what is normally a married man living in the most desperate of circumstances.

The "executive bachelor" in the UAE is usually an Indian or other South Asian male, who ranges in age from his early 20's to mid-40's. Some are indeed bachelors but most are married with families back in their home country. The title executive pays homage to the fact that many work in office settings, requiring them to wear neat trousers and pressed shirts. Despite this their status and lifestyle can hardly be referred to as executive.

The real defining characteristic of their lifestyle is one of desperation. A more accurate title might be "bedspace men." Besides their work, the rest of their existence is consumed with eking out a living in the space of an upper or lower-level bunk bed, crammed into a room with as many such beds as can fit, into an apartment likewise compartmentalized.

Somehow, these men manage to exhibit the appearance of being, if not an executive, then at least an up-and-coming junior. They are generally neatly attired and well-groomed. But the cost of maintaining such an appearance is rather horrific.

Somehow they must awaken early each morning and dress, groom and perhaps have a snack, while sharing a normal single-family bathroom and kitchen with 15 or 20 other men. A similarly impossible routine takes place in reverse when they return in the evenings. Somehow they manage to live out of a suitcase and fend their way through the laundry that hangs in whatever clear space there is. Speaking of which, one must wonder how they ever manage to take care of washing and pressing their clothes.

Under such circumstances clutter is clearly the order of the day. The bedspace men are inundated with the clutter that surrounds their tiny bed-spaces and the clutter that seems to spill out onto the streets as well. Laundry inevitably makes its way to the exterior, while crowds of men make their way up and down the streets, whether it be to work, to a cheap restaurant or just to mill about for having no space to do so in their rooms.

The situation for bedspace men has become so desperate that some can not even afford to have the bed anymore. These men pay a monthly fee to a "landlord" for space to keep a suitcase and use what is certainly an already over-used bathroom. The true executive bachelor in such a predicament will have a second-hand car--likely in connection with his job as a salesman or distributor, in which he can sleep. There are countless others who have not yet achieved the rank of executive, for not having jobs at all yet. They are among the multitude who manage to come to Dubai on visit visas, to spend their days looking for work in their supposed promise land.

The miserable plight of the executive bachelor is not new but it has worsened considerably. Not only were there fewer in such a predicament before, but where 8 or 12 per flat were the norm, 16 to 24 have now become more common. Where there were once single or twin-sized beds, there are now upper and lower-level bunks. Their plight is in some ways no less dire than that of construction laborers, who at least don't have to pay out of their own pockets--their companies provide their accommodations, aka bed-space.

Practically speaking the only significant difference in circumstances between the laborer and the executive bachelor is the quality of the workplace. The laborer, of course has to battle the elements both at home and at work, while for the executive bachelor, the workplace might in fact be a reprieve. Even their earnings are not likely to differ significantly. That is, when even getting double or triple the wages of the laborer, the actual margin of difference shrinks once the executive bachelor pays for his accommodations and numerous other expenses associated with living within the city.

What is it that belies the bed-space phenomenon in Dubai?

The housing shortage is one major cause. There simply is not enough rental accommodation available. The market accordingly has dictated that more people will be crammed into tighter and tighter spaces.

A second cause is the obligations the bedspace men have toward families in their homeland. They are in essence not able to use any income for their own comfort which might be at the expense of wife, children, parents and other relatives. In fact, they have always been willing to settle for a bed, but in the past that meant at half the price today and double the space.

Not Welcome in the Dubai Marina

So while Dubai rises as a city with towers galore and the biggest, best and most of everything, the executive bachelor struggles while seeing his plight worsen. When added to the huge number of laborers, and the similarly employed female population--admittedly much smaller in number--you have a city whose majority population lives on the edge. Whatever the exact percentages, whether it be 50, 60 or even 70%, the numbers are all moving in the wrong direction.

As Dubai continues to grow into a metropolis, both the population and proportion of low-paid service workers will increase as well. One might suggest that the demand for housing will eventually fall once the huge number of projects currently under construction come online. Unfortunately, most of what will become available will never be available to such workers.

Dubai Marina will have 200 or so high-rise towers, many rising 30, 40, 50... on up to 100+ floors. Not a single one of these is likely to provide accommodation--or even bed-space--to any of the city's desperate executive bachelors.

Go to DM Blog latest posts, Dubai Marina Communities or MAG 218 Community homepage.


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Monday, May 22, 2006

Dubai: An Overview


Dubai Gate at the heart of the city's new financial district.

It has become rather common for Dubai to feature prominently in overseas editorials. It is an easy topic of fascination for those who have heard of this or that grand project under construction. The UK's Timesonline offers its contribution to international media attempts to explain the curiosity that Dubai has become.

Dubai’s building frenzy lays foundation for global power presents a balanced overview, including observations of the incredible:

Dubai is forecast to enjoy the fastest population and economic growth in the world over the next 10 years. “This is the most optimistic, creative place on the planet,” said Donal Kilalea, 49, an Irish businessman who runs a fast-expanding sports-marketing company. “It’s not like living in a modern city state. It’s like stepping into an imagined future.”

~and pragmatic explanation:

As Werner Burger, a 37-year-old South African who runs a local hotel and property firm, said: “Dubai has been able to achieve so much so fast because it is not a state, it is a corporation, Dubai Inc, which practises pure capitalism. People living here are employees, not citizens — whether they are a chief executive or a brickie.

Dubai feels like it is changing the world.

For those living in Dubai or the frequent visitor, words like these ring true. However, small in size and distant from any other of the world's powerhouses--including large countries like the United States or China or renown cities like New York, London or Tokyo--Dubai feels like it is perhaps the most happening place on the globe.

It has its detractors, including the thousands of residents who bemoan ever worsening traffic conditions and the many, not limited to laborers, who are forced to live in shared accommodations with up to a dozen or more strangers. But even those who complain are easily struck with a sense of wonder when they see all that is coming up around them.

Of final note, the Times article offers a succinct explanation for how Dubai does what it does,

the Dubai government insists that the rapid-fire decision-making that comes with autocratic rule is the only way it can achieve its aim of building a nation from scratch in a generation.


Go to DM Blog latest posts, Dubai Marina Communities or MAG 218 Community homepage.


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They Just Keep On Coming

Don't tell me about any more projects or tenders...Dubai contractor


Middle East Economic Digest, 12-18 May 2006, p37

MEED is one of the most authoritative economic and business news sources published today and it offers an invaluable look at the whirlwind of activity taking place in the Arabian Gulf. The construction industry is the focus of attention in a recent special report. In Adapting to the Market the point is made that in order to attend to the huge demand for contractors in the current market, developers will need to and, in fact, are already devising new models of productivity.

In short the tender/bidding paradigm is being replaced with an approach which relies on a broader and deeper level of cooperation between developer and contractor. The details provided in the article should be of interest to the those involved in the industry, whether from the perspective of builder, contractor, buyer or observer.

On the one hand it is clear that the Gulf, and Dubai in particular, face significant challenges in bringing to reality their ambitious building schemes. On the other hand, the report evaluates positively Dubai's ability to meet these challenges.

Dubai--whatever defines this small city/state--has been in recent years, remarkably innovative. This trait precedes the current construction phenomenon. One might point to the erection of the Dubai World Trade Center in 1979 as an early milestone or predictor of what Dubai would later become. Another important milestone was the commissioning of the Jebel Ali Free Zone and Port in the mid-1980's. Yet, a third was the development of what would eventually become the Dubai Marina masterplan in the late 1990's.

These three projects represented not only innovations but also powerful trendsetters which set into motion economic and social forces which would become self-sustaining catalysts for other schemes. The result would be the transformation of not only Dubai but of all of the Arabian Gulf, along a model set by Dubai.

Such was the success of these initiatives that more would follow, like DSF (the Dubai Shopping Festival), Emirates Airlines, the Palm islands, etc. At each stage along the way there were challenges, perhaps no less significant in relative terms to the challenges facing the construction industry today.

The exasperation in a construction industry operator's plea for no more projects and tenders is telling of the current stresses that exist in the industry. But this is Dubai--a place which is at once unique and has a history of being innovative. The odds are that it will succeed at adapting to the market.

In a related discussion, Construction Crunch looks more closely at the challenges facing the construction industy.

Go to DM Blog latest posts, Dubai Marina Communities or MAG 218 Community homepage.


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Wednesday, May 17, 2006

Worker Unrest

The problem of worker unrest in Dubai and the rest of the UAE is a very fluid one. That is, we are seeing an unusual amount of activity...

  • on the part of the laborers who have begun to stage protests
  • and on the part of the government as it responds to such protests and attempts to enact measures to both alleviate and control the situation.
It should be no surprise that such protests have occurred in Dubai Marina—notably on April 26, when employees of Al Ahmadiyah Contracting Company staged violent protests at their 2000-man strong worksite and refused to return to work the following day. Violence was limited to destruction of some onsite property, an act which seemed to mirror an even larger protest which took place a month earlier on one of Dubai’s largest building sites, the 160+ storey Burj Dubai. (Photo: AFP/Getty Images)

Dubai Marina is at present the largest active construction site in Dubai, and although not mentioned in news reports the recent protest there most likely took place at the Jumeirah Beach Residences complex—the single largest project in the Marina. The recent trend is that wherever there are large numbers of workers gathered there is a greater likelihood of organized protest of some sort.

These events bring to fore a number of questions:

  • Will there be more protests?

    Yes, certainly. Government officials like to suggest that there is an organized mafia of sorts behind these events. I would suggest that this reflects police tendency in the UAE to always look for a culprit. The reality is that a precedent for protest has already been set. This alone is enough to embolden many laborers to stand up for what are often justifiable rights.

  • Will there be more violent protests?

    Yes, probably, but I would not expect any escalation in frequency or intensity. The violence, unprecedented as it has been, reflects pent-up frustration and a seizing of the opportunity. But as workers begin to see the negative consequences that resorting to violence brings about, both for the individuals who are prosecuted and for their cause at-large, they will better appreciate the benefit of non-destructive, albeit vocal protests.

  • Is the situation for laborers getting better or worse?

    One would expect that the situation is improving. Their plight, as it is often referred to, has gotten much attention, not only since large-scale protests began in mid-2005 but over the past several years as newspapers have detailed the many issues these workers face in almost daily reports, commentary or readers’ letters.
Such attention to laborers’ problems has already brought about government action, especially in Dubai. One of the earliest government edicts was a prohibition on transporting workers—like cattle—in open-back lorries, which had been the common practice. Next, standards for worker accommodations were codified, although sparingly enforced. In mid-2005 an outside work-ban from 12:00 to 4:00 p.m. during the hottest months of summer was enacted and widely enforced. Later in the year a worker’s hotline was established by authorities which reportedly has been well-utilized with a number of disputes having been settled as a result.

Yet, with all that has been going on of late to improve worker’s conditions, the most serious issues remain. These include...

  • poor and often inhumane housing conditions
  • extremely low salaries and instances of non-payment
  • and something which seems to be talked about more now than before, harsh treatment meted out by supervisors and others in charge.
The fact is that it is the companies which employ the laborers that are arguably most at fault for the hardships workers face. This warrants a closer look in a separate post. Save it to say now that it is clearly a situation of exploitation, especially when builders and contractors are in a position today to secure well-padded contracts due to a huge demand for new project starts. There, in fact, exists a severe shortage of contractors to meet the growing demand (see previous post, Construction Crunch; photo: Construction Week 2_06).

The government is doing something to address these concerns, but arguably not enough. Unfortunately some officials even resort to saying it is companies that are doing wrong and therefore these issues are not the concern of government. This, of course, is preposterous, and it does not for the most part reflect actual practice or philosophy on the part of the government.

It is certainly within the rights of workers to petition and protest for better and fairer treatment. To the workers' benefit the international media have begun to examine these issues. This will exert even more pressure on the UAE government to improve conditions. As a result, we will continue to see movement. There will be more protests and strikes and the government will continue to offer pronouncements that will eventually have a favorable impact on the position of workers.

Gulf News and other UAE dailies report extensively on the problems faced by construction workers and the recent spate of protests. One of its latest reports indicate that officials in the southern Indian state of Andhra Pradesh, from where most of the latest wave of labour immigrants come, are suggesting that there is a spillover in Dubai from its own troubles with Maoist activists, known as Naxalites. One Indian official counters, however, "Ex-Naxals are not planners. They are rural people and lack organisational skills." The article, Ex-Naxals not seen behind violent protests, presents a number of interesting statistics on current demographics among the labour population.

READ MORE: Gulf News Special Report, Labour in the UAE


Go to DM Blog latest posts, Dubai Marina Communities or MAG 218 Community homepage.


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Tuesday, May 16, 2006

Construction Crunch


Elegant view of an up-and-coming Dubai Marina skyline (photo source). Click image for enlarged view.

The Middle East Economic Digest (MEED) in its 21 April 2006 issue writes about a contractor's market in the Gulf, due to the huge number of building projects both planned and underway. This should hardly be of any surprise to anyone driving around Dubai or reading local news publications.

The implications of a contractor's market, however, are not discussed enough in the local media. Instead, one constantly reads of new and ever grander schemes--as though it were the developer who still called the shots.

The construction crunch does not apply to buildings alone. The government of Dubai is continually studying and commissioning new road works. In addition to a 10-flyover interchange currently being constructed at the head of Dubai Marina, a second 10-flyover interchange is being planned toward the far end of the Marina. Furthermore, two additional bridges are being planned to cross the marina canal and new construction is planned for Al Sufouh Road, the primary artery into the Marina, apart from Sheikh Zayed Road.

Projects such as these, including massive undertakings like the new Jebel Ali international airport (renamed Dubai World Central) simply exacerbate the problem.

Grateful for Delays

The unspoken implication in a contractor’s market is that some projects won't get built simply because of a shortage of builders to do the job. Alternatively, projects will be delayed considerably or built at much higher cost than projected. What's more, the problem is not only a shortage of contractors but an ever tightening supply market--i.e. tight supplies of concrete, steel, aluminum, glass, copper, labor, skilled technicians, cranes, bulldozers, scaffolding, and almost whatever else there is that goes into a construction project. It isn't simply a case of Chicken Little and the sky falling down or spot shortages of the odd resource or two. What exists is a local and regional industry operating at full-throttle with no pause in sight and no spare capacity to meet the ever-growing demand.

Those today, mostly investors, who complain about delays numbering months and up to a year or more might in coming years look back on the current situation and count their blessings for having received projects with such minor setbacks. The greatest sense of nostalgia will be felt by those currently awaiting projects to be completed two or three years on, or worse by those waiting for projects yet to break ground.

What is a Developer to Do?

The developer could find itself in a tight squeeze with contractors demanding more, if they even bother to place bids at all. At the same time, investors will continue to noisily demand that projects be delivered on time, at the agreed upon price and without compromise on quality. Something or someone will have to give. One option for the developer is to build the project itself. But such a remedy might represent more a band-aid than a fix. Not to mention that it would be no easy feat to establish a contracting operation on the fly, the real problem would be that the supply market would continue to be as tight as ever.

A more meaningful solution, which one of the MEED articles points to, would be for the developer to arrange partnerships with builders further a field, whether from Europe, America or East Asia. Developers will need to entice new builders to enter the market. It has been common practice for consultants on major projects to be lured from Europe and North America. This practice might need to be applied to the hiring of contractors as well.

In any scenario, the developer’s profit margin will suffer. But those who manage successfully to ride the current crunch, could end up being leaders in the industry once the dust at the larger construction projects begins to settle.

MAG PDD is one developer who may have to face this challenge in the construction of its MAG 218 tower, begun in February 2006. MAG 218 and Its Partners looks at how this developer might effectively respond to such a challenge, by developing additional partnerships.

What about the Investor?

Those whose projects are completed, near completion or at least half-way done are truly the lucky ones. They got their cake when prices were relatively low and will be able to enjoy it by receiving their properties in what will someday seem like record time.

Those whose projects are yet to be started or which are still in the early stages of construction may not be able to eat their cake for some time, but at least they will have it, having locked in relatively modest purchase prices.

For those still yet to buy, with project starts somewhere out on the horizon, the prognosis is perhaps worrisome. They are likely to be looking both at higher prices and longer delays in deliveries, and even cancellations. A project completed in two years time today will probably end up taking up to four years at double the cost, even in the event of an eventual solution to the problem of a shortage of builders and an over-stretched supplies market.

Go to DM Blog latest posts, Dubai Marina Communities or MAG 218 Community homepage.