Politics & Economics: Falling Dollar, Inflation Feed Dubai Strife; Low-Paid Foreign Workers, Vital to Construction Boom, Stage Protests as Wages Lose Value
Dubai, United Arab Emirates -- In this oil-fueled boomtown, which runs on imported labor, the dollar's sharp tumble is contributing to civil strife.</br></br>In recent days, thousands of expatriate construction workers walked off job sites to protest low pay and the rising cost of living. Law- enforcement officials -- who typically play down the scope of labor actions here -- have acknowledged widespread protests, isolated violence and dozens of arrests.</br></br>Sporadic, small-scale strikes are nothing new in Dubai, where hundreds of thousands of low-paid laborers are building a soaring skyline and live in camps on the outskirts of town. After criticism by human-rights groups, officials launched a high-profile campaign to clean up labor practices.</br></br>But officials are finding it more difficult to deal with what has increasingly become one of the workers' chief complaints: A weak dollar, coupled with rampant inflation, means it is hard to send enough money home to make it worth sticking around.</br></br>Dubai is one of seven emirates that make up the United Arab Emirates. Like most of the oil-rich Persian Gulf, the UAE links its currency to the dollar. With oil production dwindling, Dubai has diversified its economy, trying to remake itself as a regional hub for entertainment, tourism and financial services. It relies on imported workers for almost all of its construction and menial-labor needs.