MANILA, Philippines – The National Economic and Development Authority has allayed fears that a full-blown financial crisis could occur in Dubai and displace Filipino workers.
NEDA Director General Augusto Santos said the Dubai government and the central bank of the United Arab Emirates have taken steps to save the debt-ridden Dubai World, the investment arm of the government of Dubai.
Dubai World has defaulted on an estimated $60 billion in debt, he added.
President Arroyo has ordered the Department of Labor and Employment (DOLE) to prepare for the possible mass layoff of overseas Filipino workers (OFWs) in Dubai.
The DOLE said it is prepared to relocate the OFWs in Dubai to other countries in case of a mass layoff.
However, Santos said the crisis has eased now that the Dubai government has indicated that it will rescue Dubai World.
The ruler of Abu Dhabi, the richest emirate in the UAE, has committed to save Dubai World from its debt problems.
Concerns have been raised that the level of OFW remittances could go down significantly if the crisis in Dubai worsens and workers are laid off.
With so many OFWs in Dubai, the debt crisis could end up costing the Philippines $300 million in remittances, according to the Trade Union Congress of the Philippines.
Dubai World also has some exposure in the country through Dubai Ports World, which has operations in Manila.
In the past, the group has also indicated that it wanted to expand its port operations to Cebu and develop some resorts and hotels in the country. -– Marvin Sy, (The Philippine Star)
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of Forced Labour and Freedom of Association protocols.
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