The great impact: Expats make hay as crisis hits hard

As effects of the world economic crisis continue to be felt around the world, expats in Dubai seem to be turning the financial troubles to their advantage.

The emirate has a large British community and with the UK entering deflation for the first time in 50 years, many see it as the perfect time to invest back home.

This, coupled with a weak sterling against the dirham, means as product prices continue to drop and the property market back home becomes stagnant, expats snap up some very good deals.

Veronica Bates, 39, who has been in Dubai for seven years, said: “You can turn the current situation to your advantage if you are smart.''

She has been regularly sending money to her UK bank account, but now feels that the conditions are right for larger investments.

“House prices have been falling consistently in Britain over the last 18 months and I may be able to afford one. People come to Dubai to make money and then get caught up in an extravagant lifestyle. But, if you have used your money sensibly, you can take advantage of the current economic situation,'' she said. Increased transactions

A British expatriate said he sent home around Dh10,000 every six months. “Things are much cheaper in Britain now as the cost of living continues to fall. It's good to have extra security in case something goes wrong,'' he added.

A Western Union staff said there has been a marked increase in the number of remittance transactions between Dubai and the UK in recent months.

“We have seen a spike in the amount of money people are sending back. It has been busy since the turn of the year and began to pick up even more when the exchange rate began to favour the dirham. We are seeing a lot of traffic between the UK and Dubai and it will continue to grow in the coming months,'' he said.