Jan Demmink has lived in Dubai for 28 years. It's the pleasant atmosphere, the entrepreneurial spirit and the agreeable climate that keep him in the Gulf state. He witnessed the transformation of what was once a tranquil and prosperous town into the vast collection of skyscrapers that makes up modern-day Dubai. Under the leadership of Sheik Mohammed and his father Maktoum III, the emirate invested in the financial sector, tourism and real estate. The bigger, more expensive and more luxurious the better. Yet these are the very sectors that have been shaken to their foundations by the crisis and meanwhile Dubai has no major oil reserves to fall back on.

Financial nosedive
Jan Demmink works in the electronic security of complexes such as refineries, palaces and roads. His position is safe for the time being. "I work on long-running projects, so I have yet to feel the effects of the crisis," he explains. "But in construction you can see the signs already. A halt has been called to projects that were only started recently, or which have yet to get under way."

Dutch dredging company Van Oord is one of those in the firing line. The company hit the headlines worldwide with the construction of Palm Jumeirah, the first of Dubai's famous Palm islands and the construction of The World archipelago. Van Oord was all set to embark on a third island project, Palm Deira, an order worth 2.5 billion euros, the largest in the company's history. Part of the order has already been realised but the rest is on the back burner for the foreseeable future. The funding simply isn't there. Spokesman Bert Groothuizen says no one saw the rapid changes coming. "It was a nosedive. Especially in the fourth quarter of 2008. And I don't think these problems will be solved in six months' time."

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