UBS says workers will flee the emirate as construction jobs fall 20% this year and 10% the next
A stalling economy is expected to see the number of people living in Dubai drop by 10% over the next two years.
Swiss bank UBS said that declining construction activity as a result of falling property demand and problems with financing major new commercial schemes could cause the number of residents in the emirate to drop by 8% this year and a further 2% next year.
Around half of Dubai's 1.5 million residents are estimated to be employed in construction and property. Expats account for up to 90% of the Gulf state's population.
UBS also said that the number of construction jobs in Dubai will fall 20% this year and 10% next year.
It added: “Anecdotal evidence suggest 30-40% of new infrastructure launches in UAE have either been delayed or cancelled, with strict project and resource rationalisation under way.”