Basit Rizvi (30 years) is a tensed man these days. He works for the SGB Group, an engineering company in Dubai, as a credit controller and is uncertain about the fate of his job. Although he earns around Rs 1 lakh (1,000 dirhams) per month, he spends Rs 35,000 on rent of his apartment, travel expenses, phone bills and food bills.
Basit also has to send money for his mother, wife and newly-born daughter, who are staying in Mumbai and has to pay for his flat in Kharghar on the outskirts of Mumbai. “I have to make the payment for the flat of Rs 40 lakh in 4 to 5 years depending on the progress of the construction.”
With chances that the Dubai crisis may turn bigger, lakhs of expats are uncertain about the fate of their jobs. According to estimates from the Indian Consulate General to the UAE, Venu Rajamony, in July, an estimated 1.5 million Indians are in UAE with 1.2 million of them in Dubai and Northern Emirates.
According to wealth advisors who manage portfolios of several Non Resident Indians from the Gulf countries, many of them are over leveraged. What this means is that they have borrowed to buy assets such as a house, car and other accessories.
In case you have an expat friend, pass on this advise given by certified financial planners.
{{/usCountry}}In case you have an expat friend, pass on this advise given by certified financial planners.
{{/usCountry}}“Those expats who have taken loans to buy a house, car or any other loan in Dubai should try their best to pay back their loans as punishments are severe in that land.
On the other hand, those who have invested in assets such as real estate in Dubai and Dubai’s equities should sell of these assets before the value of their assets fall,” said Gaurav Mashruwalla, a certified financial planner.