Working in Dubai
By Veena Patwardhan
We’re commencing our series on global jobs with Dubai as the destination under review in this first article. Veena Patwardhan provides important details.
Dubai is a part of the United Arab Emirates (UAE), a confederation of seven Emirates or city-states which besides Dubai, includes Abu Dhabi, Ajman, Fujairah, Ras Al-Khaimah, Sharjah and Umm Al-Quwain. As with the other countries in the Gulf, oil and gas is the mainstay of the UAE’s economy. The UAE is the third-largest oil producer in the Middle East, and has the highest per capita income in the Arab world. Abu Dhabi, the capital of the Emirates, may be the richest, but 63% of the UAE’s income comes from commercial activities in Dubai.
A brief background
Dubai is a modern Arab metropolis that’s evolving with a vengeance. The pace of building activity is so fast, that new constructions seem to come up almost overnight. Take a look at Dubai’s swanky Internet City, the Middle East headquarters of almost all the leading IT companies in the world, and you’ll find it hard to believe that it was barren, sandy terrain till just five years ago. Work on the Burj Tower, slated to be the tallest commercial tower in the world, is going on at a furious pace. Then there’s “Dubailand” – the $4.5 billion Arab Disneyland, the new urban railway with 37 stops, and the $1.7 billion Silicon Oasis for IT multinationals (yes, yet another IT city) all of which when completed will provide job opportunities for thousands of people.
Job opportunities in Dubai
It’s unbelievable, but true. Around 75% of the population in the UAE and around 85% of Dubai’s estimated population of 1.2 million comprises foreigners – either earning their living in this part of the world or as family members of those employed there. A large number of the major Western and Japanese IT and financial services companies have offices in Dubai. Not surprisingly then, most well educated Westerners and Asians are in well-paid jobs as engineers, healthcare professionals, surveyors, managers, IT professionals, bank staff, hospitality industry personnel, analysts, etc. Major projects in the UAE include petrochemicals, downstream oil refining, telecommunications, infrastructure, aviation and tourism.
Most expatriate women work as doctors, lawyers, IT professionals, stewardesses for the national airlines and in the hospitality industry, advertising, public relations, nursing, and education. In Dubai, women are less likely to encounter sexual harassment at the workplace because of the severe punishments for this. A word of caution though for non-Arab women working in Dubai or any where in the Arab world. Although Dubai is the most liberal of the Arab states, people there are conservative about intermingling of the sexes. Women should therefore be careful not to be too extroverted or extra-friendly towards Arab men in the workplace, because they could be misunderstood as being flirtatious.
At the bottom of the social pyramid are the construction workers. Multitudes of South Asians, including Indians, have found employment in this sector. But those from democracies like India might find it a bit alarming to know that such workers have to toil for long hours without being protected by any rights, as trade unions are banned in the Emirates. Anyone who protests about the working conditions could be instantly deported.
But for white collar staff, it’s a different story. The working week usually varies between 40 to 48 hours. Friday being the Muslim rest day is the weekly day off. Those having a five-day week will most probably have the second holiday on either Thursday or Saturday. One of the main attractions of working in Dubai is that there is no personal taxation. So with no taxes on income, your net income will be higher. On the other hand, only UAE nationals can work for the government. Also, education and health care is free only for citizens. And, for however long foreigners work and live in the UAE, they cannot apply for citizenship.
Those who are looking for employment in Dubai are generally required to have a firm offer of employment before going there. Wives who move to Dubai along with their husbands and are interested in pursuing a job there will need to have a separate work visa.
Job-seekers should also be aware that having made substantial investments in education and social welfare, the government hopes that soon it will be able to offer more career openings to its own people, eventually making Dubai almost self-sufficient in terms of labour, thus putting an end to having so many foreign workers in the country. However, many international experts are of the opinion that Dubai will continue to need the services of foreign workers for the next two to three decades, but there could be changes in the number and types of job openings available. For instance, the mammoth construction projects of the present day will reduce in number leading to fewer openings for manual labour. But as Dubai’s economy continues to grow, there will continue to be a demand for people with professional and technological skills.
Most expatriates prefer to remit their savings back to their home countries. Also, since only a few companies have corporate pension schemes, you will need to draw up your own pension plan while you’re working in Dubai, by investing wisely in lucrative schemes in India or Dubai. That way you’ll have an assured nest-egg that will see you through your retirement days.
Starting a business in Dubai
If you’re keen on starting your own business enterprise in Dubai, unless you’re considering one of the “free trade zones”, you will almost always be required to have a local partner with a 51% holding in addition to complying with a number of other requirements. Just a few years ago, the government established “free trade zones’ in Dubai. One reason why these free zones are clicking with foreign nationals is that here you don’t need to open your business in partnership with a UAE national. Another reason is the tax and operating incentives offered in the free zones.
But whatever the type of business you intend to open, you’ll need to acquire the appropriate licence from the concerned authorities. Also, it would be beneficial to seek personalised and specialist advice offered by service providers available in Dubai who would assist you in drawing up a viable business plan.
Currency
The UAE dirham or Arab Emirate Dirham (AED) is depicted locally as ‘dh’. Each dirham is divided into 100 fils. Coins are in 5, 10, 25 and 50 fils and 1 dh. Notes are in denominations of AED5, 10, 20, 50, 100, 200, 500 and 1,000. Since 1980, the AED has a constant rate for conversion into US dollars. Currently, AED3.6727 = US$1 and AED0.093 = 1 Indian Rupee (or 1INR = approx 11dhs).
Social life in Dubai
Walk down the streets of Dubai and you’ll encounter more foreigners than nationals. Mingling with the wealthy local population, you’ll see people from other Arab countries, Iranians, Indians and Pakistanis – with many of the women draped in saris or sporting the latest salwar kameez outfits, Westerners, Japanese, Chinese… in short, people from all corners of the globe. If you stroll through the markets, besides Arabic, you’ll witness a flurry of trading activity in foreign languages including English, Hindi, Bengali, Tamil, Malayalam, Urdu, Turkish, Farsi, German, Thai, Gujarati, Swahili, etc. Nevertheless, the language that dominates over the others is indisputably English, not Arabic.
If you’re contemplating moving your family too to Dubai, you’ll have to remember that you’ll be moving to a culture that could be different from what you have been used to. Relocation would call for adapting to a few restrictions that you have not been familiar with in India or your native country. On the other hand, due to liberalization, the customs and practices of the outside world are slowly permeating Arab society. As compared to many other countries in the Middle East, Dubai has a very relaxed dress code. However, foreigners should be careful not to offend the sensibilities of the local people by wearing outfits that could be considered revealing. Foreign men and women may wear western clothes, but they should dress conservatively. So strictly no bare torsos revealing six pack abs, micro-minis, short tops or spaghetti straps. However, foreign nationals are free to wear swimming trunks, swim-suits and bikinis at swimming pools and beaches. And if you want to unwind with a drink later in the evening, dine out or take in some lively entertainment, Dubai has excellent night clubs with cocktail bars, wine bars, and themed bars and even typical British or Irish pubs. You’ll even find Middle Eastern, Indian and Asian nightclubs with singers and dancers.
Many foreign nationals, specially westerners, join some form of hotel-based club in Dubai. These clubs offer a range of recreational facilities, and are a great place for families to socialize, make friends, and gather information about essentials like education, healthcare, etc. But, unfortunately, membership to such clubs is very costly and hence a prerogative of the elite. Middle class expats usually prefer to join smaller community clubs where they can mingle with others from their own community.
As for driving, the same driving rules do not apply throughout the UAE. In fact, each Emirate has its own driving rules. Not just that, even for a minor transgression you could have to pay a stiff fine or perhaps even do time in jail. That’s one of the reasons why most foreigners prefer to use Dubai’s well-developed public transportation system. But if you would rather drive a vehicle, you’ll need to get an International Driving Licence for hiring and driving a car in Dubai and Abu Dhabi. In the other Emirates you’ll need to get a UAE licence from local traffic departments. Unfortunately, your International Driving Licence issued in India won’t do in the UAE. What’s more, obtaining a licence there could take 1-2 years or more! Also, in Dubai, it would be wise to strictly avoid drink driving. You could get into serious trouble for driving after consuming even the teeniest amount of alcohol.
A plus point regarding social life in Dubai is that the city has an incredibly low crime rate. Those committing serious crimes, including alcohol and drug-related offences, are dealt with very severely.
Accommodation in Dubai
Whereas tax-free salaries and an extremely low crime rate are the benefits of life in Dubai, a big minus point is the shockingly high cost of accommodation. Until recently, property ownership rights were only granted to residents of the United Arab Emirates (UAE) and other nationals of the Gulf Cooperation Council, such as Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. But now, non-UAE nationals are allowed to buy and own property in designated “free zones”. Of late, many foreign nationals are looking at investing in properties in Dubai as an attractive investment option.
However, the only viable option for expatriates in the initial years would be to go in for rented accommodation, which is available by way of apartments and villas, though at very high rentals. Just as the cost of apartments varies in Mumbai from extremely costly in Cuffe Parade and Malabar Hill to affordable in the suburbs, so also, rates of rentals varies in Dubai. Depending on the location and condition of the accommodation, a one-bedroom unfurnished apartment could have monthly rentals ranging from around 4000 -5000 dhs in areas like Karama or Satwa to around 25000 dhs in elitist areas like Dubai Marina or Jumeirah! Furnished accommodation costs around 25 per cent more, whereas serviced apartments cost still more. Those who are employed in Dubai have to spend around 30% of their salaries on accommodation. So, say if you’re looking for a managerial position in Dubai, you should only consider jobs that offer salaries from 15000 dhs and above to be able to afford accommodation in Dubai. Obviously, for those in common jobs, renting accommodation in Dubai is unthinkable.
Sky high rentals in Dubai are leading a good number of families to go in for shared accommodation to bring down costs. Others prefer to find accommodation in nearby Sharjah which has become like a suburb of Dubai and where rentals are a little lower. But then they have to put up with the hassle of getting stuck in traffic and spending 2 hours or more in travelling to Dubai and back each day. Those who can afford it are going in for buying their own small apartment not only to get out of paying exorbitantly high rentals but also as a good investment. Considering all of this, if your remuneration package comes with a housing allowance, that would be a great advantage even if it doesn’t cover your entire rental costs
Health
Dubai has many international-class hospitals and surgeries. Among the many government–run hospitals, Dubai Hospital is one of the best in the entire Middle East. The Department of Health as well as the many excellent private hospitals such as the American and Welcare Hospitals run both in and out patient clinics or surgeries.
Education in Dubai
For educating your children, you could choose from scores of foreign private schools, or government-run institutions. Since Dubai is home to a large number of expatriates, there are schools for the children of Americans, British, French, Germans, Egyptians, Indians, Pakistanis, Filipinos, Japanese and many other nationalities, as well as several international schools offering admission to a variety of nationalities. Most foreign nationals prefer to send their children to schools run by their own people so their children are educated in an atmosphere that promotes their own culture.
Dubai also offers excellent university level educational facilities by way of a number of private and national institutions. There are just a couple of things to bear in mind though. First, the cost of education in Dubai is very high, and nowadays, hardly any companies offer an educational allowance as part of their remuneration package. Secondly, you cannot enrol your child into any school right away if you move to Dubai in the middle of the academic year. Instead, you’ll have to wait till the new school year commences, which is usually in the beginning of September.
Climate
Dubai has an arid subtropical climate, with sunshine all year round. The hottest months are between June and September, when the maximum temperature could be as high as 45°C during the day. Humidity levels too are very high. For the rest of the year, temperatures are slightly more moderate. The coolest time of the year is between December and March. Dubai receives very little rainfall, that too in the cooler months.
We hope all the practical information we’ve provided regarding Dubai will help you in arriving at an informed decision. In a nutshell, Dubai is an example of globalization at work. It’s a flourishing international destination where the cost of living is high. The main advantages Dubai offers are a high standard of living, tax-free income benefits, a cosmopolitan society, and compared with other Middle Eastern destinations, a relatively safe environment to live and work in.
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Important points to remember
People across the world follow distinctive practices and have different ways of life. Fostering harmonious relations with others calls for mutual respect for each other’s traditions, specially in today’s age of globalization. So, here are a few things to bear in mind when in Dubai.
- Respect local customs.
- Don’t enter a mosque without first asking permission.
- Avoid blasphemy, particularly in the presence of Muslims.
- Take care not to step on a prayer mat or stroll in front of any person at prayer.
- Try to avoid eating drinking, and smoking in public from sunrise to sunset during the holy month of Ramadan.
- Always dress conservatively.
The highs and lows of life in Dubai
The highs…
- Tax-free income
- High standard of living
- Better quality of life
- Good roads and excellent infrastructure
- Low food costs
- Low travelling expenses
- Low petrol prices
- Incredibly low crime rate
The lows…
- Sky high rentals for accommodation
- High education costs
- High humidity levels
