Skips

Expats who flee the United Arab Emirates because they are unable to pay their debts.

Discussing the impact of the declining economy and rising unemployment in Dubai, The Abu Dhabi National reported:

More than 3,000 cars have been abandoned by owners to escape loan payments, just over double the figure in 2007, a senior police official has revealed.

Banks are now being forced to try to claw back some of their money by selling them at auctions or through car dealerships. One bank official said it was becoming a concern to banks, many of whom have tightened up criteria for issuing loans.

Customers with credit cards have also seen their limits reduced. Police recently removed 22 cars dumped at Dubai International Airport after owners fled the country leaving a trail of debt behind. Cars have also been abandoned at Abu Dhabi International Airport.

The Times of London noted:

When the market collapsed and the emirate’s once-booming economy started to slow down, many expatriates were left owning several homes and unable to pay the mortgages without credit. ”There were a lot of people living the high life, investing in real estate and a lifestyle they couldn’t afford,” one senior banker said.

Under Sharia [law], which prevails in Dubai, the punishment for defaulting on a debt is severe. Bouncing a check, for example, is punishable with jail. Those who flee the emirate are known as skips.